Whitehorse Daily Star

Residential Internet rates can’t rise until 2017

Subscribers to Northwestel Inc.’s DSL Internet service will notice their monthly bills dropping after May 4.

By Stephanie Waddell on March 4, 2015

Subscribers to Northwestel Inc.’s DSL Internet service will notice their monthly bills dropping after May 4.

The Canadian Radio-television and Telecommunications Commission (CRTC) handed down a decision this morning ordering Northwestel to drop its DSL rates by 10 to 30 per cent, depending on the package, by May 4.

“As a result of the CRTC’s decision, Northwestel will be required to reduce its rates for residential low-speed Internet connections over a Digital Subscriber Line (DSL) named DSL Internet Lite and DSL Internet 2 by 10 per cent,” reads a statement from the CRTC.

“Similarly, the company’s rates for residential DSL Internet services featuring download speeds of five and 15 megabits per second named DSL Internet 5 and DSL Internet 15 will be required to come down by 30 per cent.

“Northwestel will not be able to increase any residential Internet rates until the end of 2017 at the earliest, and will need to seek the CRTC’s permission before doing so.”

Rates for DSL service are listed on Northwestel’s website as being between $41.95 and $89.95 per month depending on the package.

John Macri, the CRTC’s director of telecommunications policy framework, said in an interview this morning that rates for cable Internet service were also reviewed.

However, they were found to be comparable with the same level of service elsewhere.

The move is part of the CRTC’s efforts to ensure all Canadians can participate in the digital economy, it was emphasized.

It comes out of a 2013 finding by the CRTC that there is limited competition in the market.

“Consequently, the CRTC decided that it would begin to regulate, on an exceptional basis, Northwestel’s rates for these services,” the CRTC stated. It pointed to last month’s lowering of Northwestel charges for additional data usage.

The CRTC required the over-usage charges to come down by at least 50 cents per gigabyte.

Macri noted that while Internet rates in the North will not likely be able to match those in the South, the CRTC wants to see them comparable.

As CRTC chair Jean-Pierre Blais said: “Although we recognize the exceptional situation that exists in Northwestel’s territory, we must not let these challenges hinder the development and affordability of telecommunications services in the North.

“Access to reasonably priced Internet services plays an essential role in the North’s economic and social development.

“With this decision, we are reducing the gap between what consumers pay for Internet services in the northern and southern parts of Canada.”

Under this morning’s decision, Northwestel will also no longer be able to charge additional fees to customers who subscribe to Internet alone rather than bundling it with phone service.

Northwestel spokesman Mark Koepke said this morning the company will take a few days to review the decision before speaking to it.

Meanwhile, the CRTC expects to begin a major proceeding in the coming months to review basic telecommunication services across the country “in order to improve access to advanced and competitive communications services for all Canadians.”

Comments (7)

Up 10 Down 1

Groucho d'North on Mar 8, 2015 at 10:41 am

NWtel’s published annual report for 2006 included a table showing net income from 2000 ($14M) rising to $18.17 million in 2006. They have also been receiving money to invest in making their infrastructure more modern, yet they decided to line their pockets rather than making the network better.

An excerpt from the December 14, 2011 CRTC decision states: “….the Commission is concerned that Northwestel’s shareholders have benefited from the price cap regulatory framework to a far greater extent than its customers. Since 2007, Northwestel has received over $20 million in annual subsidy for the provision of service in remote communities and its annual income from operations has nearly doubled to $69.3 million in 2010…”

Read it for yourself: http://www.crtc.gc.ca/eng/archive/2011/2011-771.htm

Up 11 Down 1

Prices should be dropping the infrastructure is paid on Mar 7, 2015 at 2:28 pm

When the infrastructure is paid for Northwestel should drop rates not increase. All they have is maintenance and up grade costs. This is what has taken place in the US and other parts of the world. Check out the facts.

Up 9 Down 1

Anders on Mar 6, 2015 at 2:10 pm

Every NWTEL subscriber owes it to themselves to go to Jesse Winter's YN story of Jan 8th 2014 for more detail on how this monopoly treats its users. In particular, read the comments section, towards the end (approx Jan 16 to 21 ) on specifics of how customers are dealt with and how the overages they claim are usually attributed to 'neighbors hacking your system' bullsh*t. Bottom line is southern Yukon users are subsidizing NWTEL's higher arctic regions services to the tune of millions. It's fascinating reading - take the time this weekend and get yourselves informed Yukoners. Monopoly provision is nearing its end here.

Up 10 Down 1

Rod on Mar 5, 2015 at 6:30 pm

It's about time! Northwestel has been bending Yukoners over and taking advantage of us for years! It's about time someone said something! Might not be much, but it's a start!

Up 14 Down 3

MonopolyIsNotAGame on Mar 5, 2015 at 3:20 pm

All residential cable internet users need to check their usage EXTREMELY CAREFULLY now. With DSL capped by the CRTC , NWTEL are going to try and recoup their revenue losses through cable internet provision. My advice is to check your usage ( they have an online tool accessible through their home page ) and watch it each and every day. Don't sit back lazily and watch your usage inexplicably climb incrementally upwards ( irrespective of your actual true usage ) and find yourself with their supposed 'overage' fees when its too late. It's your civic duty to control monopoly abuse situations and publicize when it happens. You have been warned. Use the CRTC services to the full. It's your right.

Up 7 Down 2

Herry on Mar 5, 2015 at 7:52 am

This is good news for the north.

Up 20 Down 6

Thomas Brewer on Mar 4, 2015 at 3:51 pm

There are two things that bug me about this order from the CRTC...

Firstly, it completely ignores the cable delivered internet charges... and while they are less expensive on a per GB/speed basis, NTWel's rates are still significantly higher than our southern Canadians.

Secondly, where the CRTC orders a range of decreases "at least 50 cents per gigabyte" - really? REALLY? Have these fools at the CRTC ever actually negotiated anything? That's like going to the GM dealership and saying you'll pay 10-30% less than the sticker. Don't be surprised when the sales contract has exactly a 10% discount. No business is going to voluntarily drop the price more than they have to and as we've experienced over the years with NWTel, they're quite skilled in extracting every.last.penny out of their infrastructure (which we paid for).

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