CRTC has collected more money than it can distribute for Broadband Fund: Bell

BCE Inc. filed an application with the commission to review and vary its decision to make $150 million available for its Broadband Fund in 2022, and in 2023 on an interim basis, arguing it has “obviously collected more money than it can distribute in the next two years.” “At the end of 2022 the commission will have collected $375 million, awarded $227 million, and distributed $46 million. This means that $148 million has been collected but not awarded, $181 million has been awarded but not distributed, and $329 million has been collected but not distributed,” Bell wrote in its Dec. 22 application, filed days after the CRTC decision was issued. In its December decision, the CRTC also approved a revenue-per cent charge of 0.46 per cent to the National Contribution Fund (NCF) for 2022. At the same time it approved on an interim basis a similar 0.46 per cent charge for 2023. “In fact, the commission should only collect amounts from contribution fee-payers that it will distribute in a given year, consistent with its longstanding practice with respect to other programs that make use of contributions. As a result, no further contributions to the Broadband Fund are required at this time,” Bell wrote. In 2016 the commission established the Broadband Fund, of up to $750 million, collected from contribution-eligible revenues over five years. The 2016 decision stated that “the commission intends to conduct a review of the fund in the third year to ensure that it is managed efficiently and is achieving its intended purpose. The incremental increases in years four and five will be contingent on the results of this review.” Bell noted that it has been three years since the commission launched its first call for funding applications, and 2.5 years since its second round of applications. The incumbent argued that the CRTC is now approaching the end of the third year of contributions and no review has been conducted. Bell said it is not asking the commission to change its plans to issue a third call for funding but rather to cease collecting additional contributions until it has concluded the policy review of the fund it intends to conduct. Bell also requested that the CRTC release the $148 million in Broadband Fund contributions that has been collected from the industry but yet not awarded to any party. Bell argued that it is highly unlikely that the commission will award the extra $148 million it has collected within the next two years, and that collecting additional funds will only exacerbate the problem. Bell estimates that the commission will finish evaluating the projects submitted in its third call for applications after the 2023 construction season, and disbursements will not take place prior to 2025. One of the criteria to submit a review and vary for a CRTC decision is if there was a fundamental change in circumstances or facts since a decision was made. Bell argued that a significant increase in government funding was made available since the CRTC released the framework of its Broadband Fund in 2018. “And the commission has already collected significantly more than the total amounts it has awarded to date. The commission will not be able to distribute (in 2023 or 2024) the total amounts it has collected. This represents a fundamental change in circumstances,” Bell wrote. Bell estimates that at the end of 2022, the CRTC would have only distributed $46 million towards Broadband Fund projects since 2020. “Which demonstrates that neither the uncalled contributions from the past nor the incremental contributions in 2023 are necessary to achieve the fund's intended purpose. This represents an error in fact.” Finally, the incumbent argues that it would suffer irreparable harm if a stay is not granted. Bell filed the amount it would have to set aside for broadband fund contributions in confidence and stated that those funds could otherwise be used in 2023 to enhance its networks, develop new products and services, improve operational systems, among other activities. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Paul Park at ppark@thewirereport.ca

CRTC has collected more money than it can distribute for Broadband Fund: Bell

News | January 9, 2023

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CRTC has collected more money than it can distribute for Broadband Fund: Bell

News | January 9, 2023

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