TIMMINS – Bell Aliant’s service areas are, quite literally, all over the map of eastern Canada.
From the tip-top of Quebec to southwestern Ontario, the westernmost regions of Ontario to New Brunswick, Nova Scotia, PEI and Newfoundland & Labrador. It provides fully half of all high-cost serving area customers in Canada.
And while the wheels are rolling towards where it will be re-incorporated inside of Bell Canada, “our company is at a crossroads,” said Denis Henry, vice-president of legal, regulatory and governmental affairs to the CRTC during the opening morning of the Obligation to Serve hearing (CRTC 2010-43). “(W)e face declining revenue and profitability in an intensely competitive marketplace.”
Part of the proceeding will decide whether or not the Commission will (or even can) expand the telcos’ basic service objective – as well as the subsidy regime that goes along with it – to include broadband.
With competition emerging, there is no need to do this, added Henry, who pointed to the upcoming launch of 40 Mbps satellite broadband from Barrett Xplore, which will present its case this afternoon. “Regulatory intervention could actually damage the industry and have major unintended consequences,” he added, “particularly for companies like ours who are engaged in a fierce competitive struggle as we try to rebuild our networks to remain relevant to our customers.”
And as for the local subsidy regime? “To be blunt, that regulatory mechanism is broken – resulting in large transfers of funds from Bell Aliant to others. We can no longer afford this state of affairs,” added Henry.
More to come…
