WHITEHORSE – Bell Canada subsidiary Northwestel this week asked the CRTC to modify the tariff filing process for retail Internet services so it can respond to the competitive threat of Starlink in the North.
“We are filing this Application today because we require the ability, on an urgent basis, to respond to the competitive threat that Starlink poses in the North,” reads Northwestel’s application to the CRTC, which was posted on the Commission’s website today.
The Commission approved an application made by SpaceX for a Basic International Telecommunications Services licence to provide telecom services via its low-Earth-orbit satellite constellation Starlink in October 2020, and in November of that year, Innovation, Science and Economic Development Canada approved a request for the necessary spectrum.
Northwestel notes there are currently Northerners signing up for Starlink’s service and paying $129 deposits so they can reserve equipment for Starlink’s commercial launch, which is expected in the North in 2022.
“Many customers see Starlink as a viable alternative to our terrestrial Internet packages, as it is substantially less expensive and we expect the service speed to exceed even our top tier fibre-to-the-premises (FTTP) and coaxial cable speed upon commercial launch,” Northwestel’s application reads.
Northwestel is asking the Commission to waive its requirement to meet the price floor test for its tariff notices for retail residential terrestrial Internet services that propose to lower the price of services or introduce improvements, such as larger data allowances, at a price that is not higher than its closest existing approved service.
Northwestel’s application points out the CRTC decided to re-regulate its retail Internet services out of concern the company’s prices may not be affordable and because there were few competitive alternatives available to customers in the North.
“Starlink changes this, and the change will be faster than we have seen in any market in Canada up to now,” Northwestel’s application says. “Our proposal permits us to respond to the very real threat that Starlink poses while still addressing the Commission’s original concerns with high prices, as our proposal only permits price decreases.”
Interventions can be submitted to the CRTC on Northwestel’s application until Jan. 28, 2022
