UPDATED: CRTC commissioner dissents on pitch to subsidize northern internet service

The CRTC’s commissioner for British Columbia and Yukon disagrees with her colleagues on providing a subsidy for internet users in the far north. All households in the far north will be eligible for the subsidy, regardless of their internet provider, the CRTC said in an announcement Thursday, Jan. 16, and regardless of whether they subscribe to terrestrial or satellite internet services. “I deeply disagree that the most meaningful and effective means of achieving affordable and accessible telecommunications services in the North is to provide a uniform subsidy to all telecommunications service providers,” said Commissioner Claire Anderson in a dissenting opinion to the regulator’s newly launched consultation on such a subsidy. “Throughout the telecommunications in the far north proceeding, the strong view expressed by northerners was that the introduction of competition was the preferred path for achieving the regions’ important social, economic, and consumer objectives rather than a subsidy,” Anderson stated at the end of the notice of consultation. Andserson noted that competition was seen as a better approach by way of “facilitating community-based and Indigenous-owned economic opportunities, which in turn would lead to greater job creation, better service packages, improved customer service and affordability.” In Thursday's decision, the regulator also ruled that Northwestel Inc., the incumbent carrier in the north, must offer credits to customers who lose internet service for more than 24 hours. It said it will open up Northwestel’s network to competitive carriers in order to boost competition. The telecom does not have to develop a network improvement plan at this time, the regulator said. It will have to consult with competitors Iristel Inc. and SSi Canada to ensure network upgrades will match the CLECs’ standards. Northwestel must file paperwork by July 16. The CRTC held hearings in Whitehorse, Yukon last year which established several facts about internet service in the north: prices are too high; quality is lower and less reliable than other parts of the country; there are too few ISPs in the region; and solutions are needed to advance reconciliation with Indigenous groups. The proposed subsidy will deal with the matter of pricing. The hearing found that in 2023, the cost of 50 Megabits per second (Mbps) download and 10 Mbps upload in the north was $157 on average. The average in the rest of Canada was $94. The subsidy will be available to all residential customers and to small businesses (defined as firms spending $2,500 or less each month on telecom services), regardless of service provider. The subsidy will be funded by the National Contribution Fund. To increase quality, Northwestel is being mandated to offer credits on service outages and to file a yearly report on such outages. This would be easier than being forced to pay refunds, the CRTC decided. Northwestel must file an amended general tariff by Jan. 30. Lastly, the commission is investigating several policies to bridge the digital divide between Indigenous people and other Canadians. It acknowledges that access to proper internet service is beneficial to Indigenous people. “Equity and substantive equality are only achievable if Indigenous and non-Indigenous peoples have comparable levels of access to telecommunications services in terms of quality and cost of service,” the CRTC wrote. By Jan. 16, 2026, Northwestel must file annual reports on progress it is making in Indigenous reconciliation, any changes to its reconciliation plan, and any improvements it sees as necessary. After the 2024 hearings had concluded, BCE Inc. announced it will be selling Northwestel to the Sixty North Unity consortium, which is made up of Indigenous partners. The proposed sale is not expected to have any effect on the CRTC proceeding. Northwestel did not have a spokesperson available to speak with The Wire Report. It did send an email statement outlining its reaction to the regulator’s ruling. “We have reviewed the decision and will be implementing the changes directed by the commission,” the northern incumbent stated. “We look forward to participating in the CRTC’s public consultation for the implementation of a retail internet service subsidy in the far north and share the commission’s view that there are unique and challenging circumstances in serving remote, northern communities.” ppark@thewirereport.ca

UPDATED: CRTC commissioner dissents on pitch to subsidize northern internet service

Regulatory |
By Paul Park
| January 16, 2025

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UPDATED: CRTC commissioner dissents on pitch to subsidize northern internet service

Regulatory | By Paul Park | January 16, 2025

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