Cable / Telecom News

UPDATED: Bell and Northwestel unveil $273 million Internet and wireless upgrade plan for north


WHITEHORSE – Bell Canada and Northwestel said last week the companies would upgrade all 96 communities served by Northwestel in northern Canada with high-speed Internet and next-generation wireless over a five-year period. Northwestel, a direct subsidiary of Bell, maintains the plan will not result in increased service prices, and is partially contingent on the CRTC approving the Astral public benefits package that is part of Bell’s $3.38 billion takeover of Astral Media.

According to sources, the CRTC will make public the Bell application to purchase Astral Media this week, along with timelines for comment and a hearing date.

“We have a modernization plan that ensures northern Canadians will have access to advanced internet and wireless networks, delivering services and experiences comparable to those available in southern Canada,” said Paul Flaherty, president and CEO at Northwestel in a statement. “Residents in 96 northern communities, no matter how remote, will have access to the latest wireless devices – whether smartphones or tablets – as well as communications networks able to meet current and future needs.”

As part of the plan, Northwestel is asking the CRTC to approve the allocation of $40 million of the public benefits associated with Bell Canada’s purchase of Astral Media. Flaherty said that funding would ensure Northerners have access to next- generation services, including 3G/4G wireless broadband.

The funds represent one portion of a larger Astral benefits package that will support other broadcasting initiatives, such as the production of programs of national interest – including feature films – from independent producers in both official languages, and the development of Canadian musical artists in all parts of the country. The overall benefits package related to the Astral acquisition is not yet publicly available.

“The $40 million Astral component is a critical element of our overall plan. It represents a unique opportunity to channel investment where it’s needed. Modern telecommunications networks are truly multi-purpose, and expanding the availability of broadband across the North strengthens Canada’s broadcasting industry by ensuring all Northerners can join other Canadians in using broadband services to access and interact with new media and other content, including television programming,” added Flaherty.

Northwestel says the investment of $273 million over the next five years will deliver the following benefits to 96 communities across Canada’s North:

  • All communities will have access to next-generation wireless broadband services and the latest handsets, smartphones and tablets supported by advanced 3G/4G networks. Existing cellular sites will be upgraded and communities without wireless will receive service by the end of the modernization plan.
  • All communities in northern Canada will have access to high-speed internet and many will benefit from upgrades to wireline Digital Subscriber Line (DSL) and cable broadband services, ensuring a minimum of 5Mbps download speed and 1Mbps upload speed in 79 smaller communities, and higher speeds in the rest
  • All communities will have access to Enhanced Calling Features, including call display.

www.nwtel.ca