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CRTC to hold hearings on Northwestel

Service providers, businesses and residents in the far north are going to get another chance to vent their frustration against the countryโ€™s biggest phone company.

The Canadian Radio-television and Telecommunications Commission (CRTC) said Thursday it will hold a public hearing next summer into the telecommunications services offered by Bell Canadaโ€™s Northwestel Inc. subsidiary.

The announcement comes exactly a year after the commission ended Northwestelโ€™s monopoly on local phone service.
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It also comes after protests over Northwestelโ€™s proposed $273 million modernization plan, which was tied to Bellโ€™s planned billion dollar acquisition of Astral Media. The commission killed that deal.

For example, last July the SSI Group, which provides wireless broadband and satellite service to the north, issued a press release complaining Northwestel โ€œthreatenedโ€ that if the Bell-Astral deal sank it wouldnโ€™t improve telecom service. SSI has its own network but also buys backbone connectivity from Northwestel. It is fighting with Northwestel now before the commission on certain tariff rates.

Northwestelโ€™s initialย proposed plan was a โ€œblatant broadside attack on competition,โ€ the SSI release also said.
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Dean Proctor, chief development officer for SSI Group praised the CRTCโ€™s move in an interview Thursday, saying its โ€œsomething weโ€™ve been waiting for for a while.โ€

In particular heโ€™s pleased that the hearing wonโ€™t just focus on Northwestel but will broadly cover increasing telecom competition in the north including the cost of backbone transport.

โ€œThis is about how to properly address the communications needs of the north going forward and to make it a more hospitable place for telecom consumers.โ€

In a statement about theย CRTC reviewย Northwestelnsaid it is โ€œproud of its long history of providing state-of-the-art communications across some of the most challenging terrain in the world.โ€

The statement also said the company will provide extensive information on its operations, including a revised modernization plan.

In announcing the review, CRCT chair Jean-Pierre Blais said that โ€œCanadians expect to have a choice of high-quality telecommunications services, regardless of where they live.

โ€œLast year, we expressed concern about the services available to northern Canadians and required Northwestel to develop a plan to modernize its aging network.โ€ A public consultation followed by hearings next June in Inuvik and Whitehorse โ€œwill allow us to conduct a comprehensive review of Northwestelโ€™s services and its planned improvements.โ€

Northwestel provides telecommunications services in the Yukon, the
Northwest Territories, Nunavut, northern British Columbia and northern
Alberta.

Under last yearโ€™s CRTC order, it must update its modernization plan by January 16, 2013.

The commission says it wants to hear from the public before the hearings on Northwestelโ€™s modernization plan, regulations it should follow, whether changes need to be made in the existing subsidy regime to fund telecom services in the north and how competition should be implemented.
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When Northwestel announced its $273 million modernization plan it included $40 million that Bellโ€™s parent, BCE Inc., promised to spend on so-called public benefits it had to make for taking over competitor Astral.

The modernization spending, to be spread over five years, would ensure that residents of 96 communities would have access to the latest wireless devices on an upgraded 3G/4G network, the company said last July.

It also promised all communities would have access to Internet download speeds of at least 5 Mbps.ย That target was set by the CRTC last year. Finally, Northwestel also promised all communities will be able to buy enhanced calling features on local phone service. All this, it said, would come without increasing prices.
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Since then Northwestel has issued a string of announcements, including new satellite-based broadband service in six Nunavut communities of download speeds of up to 2 Mbps; boosting download speeds to 5 Mbps in Nunavutโ€™s capital, Iqaluit; and boosting the CDMA wireless data speeds in four communities to EV-DO standards (about 3 Mbps. By comparison, LTE networks in urban Canada allow smart phone download speeds of up to 25 Mbps under ideal conditions).

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