CRTC approves Northwestel internet tariffs

The CRTC approved two internet tariffs from BCE Inc.’s Northwestel Thursday, over objections from some stakeholders in the north. In October 2020 the telecom filed tariff notice (TN) 1099 which would have introduced three new internet packages. The first would see cable- and fibre-to-the-premises- (FTTP) areas offered 50 Megabits per second (Mbps) download and 10 Mbps upload speeds for $160.95 per month for residential customers and $299.95 per month for business clients. The second would see two additional speeds for residential (Residential 250+ and Residential 125+) and business (Business 300+ and Business 150+) clients. The third proposed two new cable and FTTP packages in all communities. The following April it filed TN 1122 which would have reduced prices for its internet services. Internet 50+ prices would drop from $160.95 to $149.95; Internet 125+ would sell for $189.95 rather than $199.95; and Internet 250+ would decrease from $249.95 to $239.95. Among the interveners in the two notices were SSi Micro Ltd. and Daniel Sokolov, filing as an individual. Other agencies and individuals also responded. “In general, while interveners supported the availability of unlimited internet options, they were concerned that the prices were still too high,” the commission ruling stated. “Most individuals indicated that as the need for internet data increases, there are people who need plans with more generous data allowances but cannot afford them.” Sokolov argued that the proposed rates in TN 1099 do not fulfill the requirements of the Broadband Fund and the Telecommunications Act. He supported the rate reductions in TN 1122 but said the regulator should deny the data cap Northwestel wished to impose on residential 125 and 250 packages. SSi opposed both tariffs, asserting that the measures were anti-competitive. They would hinder SSi’s goal of offering competing services in the north, the company had argued. Northwestel rejected all the arguments and said while it recognized customers’ desire for lower rates, the proposed levies meet the price floor test. The telecom is seeking to have the price floor test scrapped in a separate application before the CRTC, citing competition from Space Exploration Technologies Corp.’s Starlink offering The regulator agreed with the telecom, saying Sokolov’s Broadband Fund argument is outside the scope of the TN filings. SSi’s competitive position was also outside the bounds of the filings, although the CRTC acknowledged the company’s concerns. “The commission has maintained that Canadians living in the north should have access to telecommunications services that are as comparable as possible to those available to Canadians living in the south. Approving TN 1099 and TN 1122 would be a positive step in that direction,” the telecom order stated. Sokolov had also suggested that if lower prices were granted under TN 1122, customers who had paid higher rates under the earlier price regime should receive rebates. The CRTC rejected that argument. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

CRTC approves Northwestel internet tariffs

News | January 27, 2022

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