TORONTO — While applauding the federal government’s decision to increase funding available through its Universal Broadband Fund to $1.75 billion, independent service provider Distributel today said now it’s time for the CRTC to enforce its 2019 wholesale rate decision to create certainty for independents and stimulate investment and innovation (something fellow independent TekSavvy is also advocating).
Enforcement of the 2019 decision will not only establish rate certainty, it will provide independents with a retroactive overpayment refund which Distributel says it “will use predominantly to accelerate efforts to expand rural broadband and invest in other innovative initiatives that deliver value to all Canadians,” according to a company press release today.
Distributel CEO Matt Stein points to his company’s 2018 partnership with Eeyou Communications (EC) as an example of successful rural expansion which helps to bridge the digital divide. Working together, the two companies brought 1 Gbps fibre-optic Internet service to the Cree communities of Eeyou Istchee and the municipalities of the Eeyou Istchee James Bay region in Northern Quebec.
“These communities now benefit from the highest quality internet service available, going way beyond what was mandated by the government. That’s what every Canadian deserves,” says Stein, in the release. “What’s more, the prices they pay are comparable to major Canadian cities, too — that’s how you bridge the divide.”
Distributel says the expanded Universal Broadband Fund will allow the company to move forward with more investments in the EC community and other rural communities across Canada. The company says it’s already working on plans to invest $75 million to deliver broadband to 10 additional rural communities.
“With the government now projecting that 98% of Canadians will have access to broadband internet by 2026, and with so many families having been hit hard by the economic effects of the Covid-19 pandemic, the need for fair, competitive offerings becomes all the more critical,” says Stein. “This underscores the urgent need for the CRTC to implement its 2019 rate decision, bringing much-needed certainty to the independent service providers so that they can pursue more projects like the EC partnership.
“We need the CRTC to enforce its decision so that we can pass it on to the consumer,” adds Stein. “This is about doing the right thing for Canadians, especially those who have been denied access to this type of service in the past. We are committed to working with local partners like EC to bring these benefits to underserviced parts of Canada.”
Stein also noted the continual delays to the implementation of the final wholesale rates, with the most recent action by the Bell Canada and the large cable companies seeking to bring their appeal before the Supreme Court, following the Federal Court of Appeal’s September 10th decision which dismissed the incumbents’ earlier appeal of the Commission’s 2019 rate decision.
“The incumbents’ constant stream of delay tactics,” says Stein, “including their latest move of appealing to the Supreme Court of Canada, has only served to benefit the big players and stifle the rest of the industry. Canadians deserve better. We need a healthy, competitive market that stimulates innovation, serves every community equitably, and offers Canadian consumers not just price relief but also varied offerings and exceptional service. It’s time for the CRTC to stand firm on its decision to institute fair wholesale rates and repay the ISPs for years of overcharging, which will translate directly to better value for Canadians.”
