Iristel proposes new northern telecom funding regime

The CRTC should create two new funds to foster competition while improving northern telecom services, Iristel Inc. and Ice Wireless said in an application filed with the commission last week. In a joint-application, northern partners Iristel and Ice Wireless said Northwestel Inc.—the incumbent northern telco and a BCE Inc. subsidiary—should not be allowed to continue drawing $20 million a year from the National Contribution Fund to support its proposed rollout of advanced wireless services across the North. That fund, which is only available to incumbent telcos, should only be used to support wireline services and related infrastructure and not wireless technologies, the companies said. In documents filed with the commission in July, Northwestel said it could offer wireless services to 45 small northern communities through continued support from the contribution fund and a $40 million cash injection through the tangible benefits relating to Bell’s $3.38 billion purchase of Astral Media Inc. “Continuing the current NCF approach under these conditions simply subsidizes one of several competitors deploying similar technology,” Samer Bishay, president of both Iristel and Ice Wireless, wrote. Bishay said the CRTC should instead provide two funding streams that would be open to Northwestel’s competitors, and which would specifically fund projects to improve northern Internet back haul and to provide wireless service in smaller communities. Bishay asked the CRTC to order Northwestel “to cease and desist from launching new competitive services and new pricing packages for existing competitive services” until the commission rules on a series of Northwestel tariff proposals that can impact its competitors’ prices. “While competitors have been constrained by the uncertainty, Northwestel has used the additional time as a head start in the competitive environment, launching services in a bid to pre-empt the competitors from gaining a share of the market,” Bishay wrote. The deadline for comments is Sept. 10.

Iristel proposes new northern telecom funding regime

Brief | August 13, 2012

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Iristel proposes new northern telecom funding regime

Brief | August 13, 2012

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