CRTC greenlights Northwestel Connecting Families packages

The CRTC has given the green light to BCE Inc. subsidiary Northwestel Inc. to offer two Connecting Families Internet Packages in a bid to provide affordable internet access to low-income households in Canada's northern regions. These packages, approved on a final basis and set to launch Tuesday aim to make online services more accessible to families in the North. “Affordability of goods and services, not just telecommunications services, in the Far North compared to affordability in southern Canada has been an issue raised in many proceedings. This disparity is felt most acutely by low-income households. The commission considers that, while Northwestel’s participation in the Connecting Families initiative does not fully address internet affordability in the North, it would benefit eligible low-income households,” the CRTC wrote in its Tuesday decision. The Connecting Families initiative, established by Innovation, Science and Economic Development (ISED) Canada in 2018, is designed to alleviate the financial burden of home internet service for Canadian families struggling to make ends meet. It primarily targets families receiving the maximum Canada Child Benefit and low-income seniors receiving the maximum Guaranteed Income Supplement. Northwestel, the only incumbent local exchange carrier under CRTC regulation for retail internet services, made the announcement of its participation in the Connecting Families initiative during a commission hearing held in Whitehorse, Yukon in April 2023. To provide services under this program, Northwestel was required to submit a tariff application for approval by the commission. The approved Connecting Families internet packages include: Connecting Families 1.0: Monthly Rate: $10 Download Speed: 15 Mbps Upload Speed: 1 Mbps Included Usage: 300 GB Overage Charge: $1 per GB Connecting Families 2.0: Monthly Rate: $20 Download Speed: 50 Mbps Upload Speed: 10 Mbps Included Usage: 400 GB Overage Charge: $1 per GB Northwestel will offer the Connecting Families 1.0 Package to eligible residential customers in communities across its service territory that are served by terrestrial internet facilities, including DSL, cable, or fiber-to-the-premises (FTTP). In areas where DSL service cannot support the specified download and upload speeds, Northwestel will provide the best available speed for the same $10 monthly rate. The company will also waive installation charges for this package. The rates proposed by Northwestel are notably below those approved by the commission for its tariffed service offerings. Nevertheless, the company maintains that these rates align with its agreement with ISED, its prior statements to the commission, and various other factors, thus justifying their appropriateness. The Government of the Northwest Territories applauded the move as a critical step in addressing the digital divide in intervention, while other parties raised concerns regarding potential impacts on competition in the region. Parties such as Public interest Advocacy Centre (PIAC) and SSi Micro Ltd. have questioned the anti-competitive nature of Northwestel's proposal and its potential to create a captive base of low-income customers. Despite these concerns, the CRTC sees Northwestel's participation in the Connecting Families initiative as an essential step toward improving internet affordability in the North, particularly for low-income households. The commission found that the minimal impact on competition and the urgent need to address internet affordability in the region justify the approval of these below-cost packages. Northwestel's proposed packages meet or exceed the requirements set by ISED for the Connecting Families initiative, according to the commission, which is confident that these packages will advance internet accessibility in Northern Canada. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Paul Park at ppark@thewirereport.ca

CRTC greenlights Northwestel Connecting Families packages

News | October 24, 2023

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CRTC greenlights Northwestel Connecting Families packages

News | October 24, 2023

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