CHATHAM, Ont. — Independent ISP TekSavvy today voiced appreciation for the federal government’s launch yesterday of its $1.7-billion Universal Broadband Fund, which will provide subsidies for broadband infrastructure projects in rural and remote Canadian communities.
The company also welcomed the Canadian government’s $600-million agreement with Telesat to subsidize satellite-based Internet providers, as well as the Ontario government’s announcement last week of its plan to spend almost $1 billion over six years to improve and expand broadband and cellular access across the province.
In a press release today, TekSavvy says these historic public subsidies for rural broadband projects will help to close Canada’s digital divide and clear the way for the CRTC is implement its 2019 final wholesale rate decision to deliver price relief for consumers across Canada. (As Cartt.ca readers are aware, the final wholesale rates have never been implemented, and TekSavvy has asked the Federal Court of Appeal to cancel the CRTC’s recent stay while the Commission reviews its decision.)
In addition, the public investment in rural broadband projects provides major incentives for carriers to accelerate network investments, says the ISP.
“The combination of billions in public funds and the reasonable rates of the CRTC’s 2019 rate decision properly balances the government’s objectives of more affordable consumer pricing, increased competition and network investment, since the CRTC’s 2019 decision enables independent ISPs, like TekSavvy, to accelerate and expand ongoing investments in their own network infrastructure in underserved areas,” reads the company press release.
TekSavvy’s own five-year investment plan totals more than $250 million, including over $100 million for high-speed network infrastructure connecting more than 60,000 residences and businesses in underserved communities across southwestern Ontario.
The company noted its ongoing investments in fibre-to-the-home network facilities connecting 38,000 homes and businesses across the municipality of Chatham-Kent, as well as its expanded LTE wireless network to bring high-speed Internet service to 30,000 underserved rural households and businesses in Elgin, Lambton and Middlesex counties. In addition, TekSavvy was awarded a contract in July by SWIFT (Southwestern Integrated Fibre Technology) to build a fibre-optic network to bring high-speed Internet to the community of Delaware Nation Moravian of the Thames. And last month, TekSavvy was selected by SWIFT to construct two FTTH projects to deploy 52 kilometres of fibre-optic facilities within the Town of Lakeshore.
“The single greatest threat to TekSavvy’s quarter-billion-dollar investment plan is the CRTC’s delay in implementing its 2019 final wholesale rate order,” said Marc Gaudrault (above), TekSavvy’s CEO, in the company’s press release. “Healthy independent competitors, like TekSavvy, are ready and willing to accelerate and expand our broadband investments bringing high speed access, innovative services, competitive choice and lower prices for more Canadians — we simply require the rate certainty and cost corrections ordered by the CRTC in 2019 to take effect.”
