SaskTel steps up competition in Saskatchewan with fibre network investments

Regional competitors say they’re not concerned about SaskTel’s recent move to “future-proof” its network with a $670-million investment over seven years to build fibre to the home in the province’s major urban centres. The company’s next generation broadband plan aims to cover 100 per cent of homes in Saskatoon, Regina, Moose Jaw, Weyburn, Estevan, Swift Current, Yorkton, North Battleford and Prince Albert, Sask., by 2017. “We believe we’re leading the way in terms of fibre to the premise activity,” Michelle Englot, SaskTel’s director of external communications, said in an interview. “We know there are some other Canadian telcos that are looking at expanding. But the scope of this project, we believe, by the end of the seven years, will definitely be one of the largest FTTP deployments in Canada.” Englot said the investment will cement the telco’s Internet market share in the province, which she said is approximately 72 per cent. The fibre lines will allow for download speeds of 100 Mbps in the majority of homes by 2017, and ultimately reach 200 Mbps, she said. Those speeds will basically double that of SaskTel’s competitors, Englot said. Downloading a 6 GB, high-definition movie using fibre lines at 100 Mbps would take approximately four minutes, she said, or half that of its cable competitors. Englot said cable companies Shaw Communications Inc. in Saskatoon and Access Communications Cooperative Ltd. in Regina represent SaskTel’s primary competition in the province. But Shaw’s senior vice-president of regulatory affairs, Jean Brazeau, said in an interview that SaskTel’s investments only show a company playing catch-up, not launching ahead into bold new territory. Shaw does not run its services on a fibre network in the province, but more advanced cable technologies are making its network faster and more efficient. “With the DOCSIS 3 platform that we have, we can provide similar-speed Internet services as they can, and the full spectrum of TV channels,” Brazeau said. “They’re catching up—they’re not going beyond our capabilities. It’s just a bit more competition for us but that’s all there is.” Brazeau said that, in Saskatchewan, Shaw operates primarily in Saskatoon. Fibre-to-the-home in Saskatchewan is not necessarily a game changer, he said. “Often fibre-to-the-home is not exactly to the home, and the network is only as good as its weakest part,” Brazeau said. “If there’s any copper in between the home and the switching office, it doesn’t matter how much fibre you have. The quality of the service and the speeds will be affected by the fact that you do have copper somewhere serving that home.” Brazeau said Shaw can continue to compete for consumers with its DOCSIS 3 technology on coaxial cable. In a previous interview, Shaw’s vice-president of engineering, Dennis Steiger, said the company will start deploying only fibre cables next year to increase its Internet speeds and network reliability. SaskTel’s investments will extend fibre lines, which currently come within 900 metres of homes in major urban centres, the remainder of the way, eliminating copper connections, the company says. Telus Corp. spokesman Chris Gerritsen said the company launched its 4G wireless network in Saskatchewan last August and enhanced its network-sharing agreement with SaskTel, which facilitates the deployment of next-generation voice and data services and optimizes cell-site utilization. Gerritsen would not disclose Telus’ Internet market share in the province but said the company offers wireless Internet services in Saskatchewan and not wireline. He wouldn’t say how SaskTel’s investments might affect Telus’ business plans in Saskatchewan. The company has been investing in the roll out of fibre networks in the West to support Internet and its Optik TV digital television service. The company announced a $670 million wireless and wireline network enhancement in B.C. last month, part of which was for fibre optic cable. “Just like anywhere else in Canada, it’s an intensely competitive market, so our plans and strategies are closely guarded,” he said. He added that Telus is spending another $650 million in Alberta this year to advance wireless and wireline services. The company last year said intended to invest $650 million in British Columbia and $650 million in Alberta during 2010, funds that were largely directed at its fibre network. SaskTel’s investment will also give its TV offerings a boost, allowing for digital television services with an unlimited number of PVR boxes in each home. The company’s TV market share in the province is 33.6 per cent, Englot said. She said SaskTel is “future-proofing” its network by investing in the fastest technology available and replacing 60 per cent of its aging copper network. Upgrades for future speed increases can be made without replacing the fibre. A growing number of customers switching to “upper-tier” high-speed Internet plan provided some impetus for the investment, she said. SaskTel is investing $199 million in 2011, $16 million of which falls within its next-generation broadband program to begin servicing Saskatoon and Regina with fibre-to-the-home. Other 2011 investments include $27 million for a rural infrastructure fund to upgrade 220 communities from 1.5 Mbps to 5 Mbps by the end of the year, and $52 million to further the construction of its 4G wireless network. mburgess@thewirereport.ca

SaskTel steps up competition in Saskatchewan with fibre network investments

News | April 13, 2011

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