What southerners take for granted, northern Canadians can only hope for

Southern Canadians have gone beyond dreaming of the arrival of competition, convergence and broadband speeds. In many parts of Canada, they are now taking it for granted. Such is not the reality for the approximately 110,000 Canadians who live in the northern territories, and the remote northern areas of British Columbia. On June 14, a panel of seven CRTC commissioners convened in Whitehorse to hear testimony from northern residents on the state of their telecommunications services. The hearing, which is expected to conclude by June 23, is discussing the implementation of toll competition in Northwestel's territory, the appropriate regulatory framework, quality of service and return on equity for the telco. Several telecom users made presentations before the panel, including those from hospitals, business, local governments and labour. The general consensus was that northern residents need access to more and better telecommunications services. One of those presenters was Alain Carriere, president of the Iqaluit Chamber of Commerce. Below is an edited transcript from his June 13 presentation: Over the past five or six years the telecommunications industry has grown by leaps and bounds. Witness the explosive growth of the Internet and wireless communications. To think that this rapid change in the way we communicate and do business will stop would be naive. Living and working in the north has always presented a challenge. In the early days, the north was the last frontier in receiving reliable, affordable communication options. Today we are able to pick up a phone and call Australia almost as easily as calling a next door neighbour. However, neither business nor technology can stand still. In the face of this rapid change comes the introduction of competition in the telecommunications marketplace which we endorse. We recognize that competition will allow us to conduct our business with lower overhead and make us more competitive. However, we also recognize that pure and open competition within the telecommunications sector of the north would result in a very selective market being targeted for that competition, those being the larger urban centres, such as Whitehorse, Yellowknife and possibly Iqaluit. Any community outside these centres would be burdened with unimaginably high costs of services. We have heard about the proposed equalization pool, whereby all telecom companies contribute into a pot that helps subsidize service to remote areas such as ours. As we understand it, the whole idea of this equalization pool is to ensure all communities in the north have access to the same level of service and the same competitive rates as other communities in Canada. Despite some concerns expressed by southern phone companies about the pooling idea, the simple reality is that most of the present long distance calls are north/south, into the very areas served by these southern companies. They, in fact, already are receiving the benefits of these long distance calls. By introducing competition, we believe that they can expect to see an increase in both line usage and the toll charges that are paid to them. This equalization pool will not just benefit northern telecom operators. It also will benefit southern operators. We also feel that it should not only be the owners of the infrastructure who contribute to this proposed equalization pool. It should also be the discount operators who have benefited significantly from the opening of competition in the industry. Communications will play an increasing role in the way business is conducted in the developing global market. The Arctic is strategically placed to be a major part of the growing global market, including an exciting potential we are currently actively exploring to explore circumpolar trade and technology transfer. Affordable and available telecommunications technology is critical to sound development of our northern economy and the quality of life for those who live here.

What southerners take for granted, northern Canadians can only hope for

News | June 19, 2000

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