Whitehorse Daily Star

Cross-town Internet charges called unfair

The City of Whitehorse is proposing that all Yukon communities join hands to fight Northwestel Inc.'s Internet billing policy.

By Chuck Tobin on March 7, 2012

The City of Whitehorse is proposing that all Yukon communities join hands to fight Northwestel Inc.'s Internet billing policy.

Coun. Florence Roberts has presented the proposal in the form of a resolution for consideration by the Yukon's eight municipalities, two hamlets and four local advisory councils.

Elected representatives of the communities will be gathering in Dawson City the first week of May for the annual general meeting of the Association of Yukon Communities.

City council is scheduled to vote Monday whether to forward the resolution to the annual meeting.

The resolution also asks the communities to petition the Yukon government to join the resistance.

Northwestel's practice of billing for cross-town Internet exchanges that never leave the territory is not right, says the resolution.

It states the charges are an unnecessary burden on Yukoners, businesses and government.

"Be it resolved that the Association of Yukon Communities petition Northwestel to stop the practice of levying packet charges on data within the territory,” reads the proposed resolution.

"Be it further resolved that the Association of Yukon Communities petition the Government of Yukon to join with the communities in their advocacy efforts to stop Northwestel's practice of levying cross-town packet charges on data within the territory.”

Mike Stevely, the city's manager of information systems, explained the charges – without getting too technical – would be similar to Northwestel adding individual phone calls to the monthly phone bill every time somebody called his or her neighbour.

It's accepted when Internet users are going out of the territory that additional charges are appropriate, just as charges for long distance phone calls are, he explained.

Stevely said it's a different story when someone is emailing his or her buddy next door, and the information exchange isn't even leaving the City of Whitehorse but the exchange is being clocked on the accounts of both the sender and receiver.

Every time there's an exchange, local or otherwise, it's charged as usage on a customer's allowable bandwidth, he said.

"This, I think, would be a benefit to everybody in the territory,” Stevely said of the proposal to do away with charges for cross-town Internet exchanges.

"I do not see a reason why the local traffic should be billed, particularly when I am paying for it and you are paying for it.”

Northwestel spokeswoman Emily Younker said this morning the majority of Internet traffic in the territory is north-south, and does indeed leave the Yukon.

Just because somebody is accessing the website of a local business doesn't mean the website is being provided and maintained by a local service provider, she said.

Younker said it's the same for an email address.

"However, we do have some flat-rate services within municipalities and will happily engage with municipalities to find a solution to the problem,” said Younker.

Comments (14)

Up 1 Down 0

Groucho d'North on Mar 15, 2012 at 10:42 pm

Well it took some sleuthing on-line but I did find NWTel's annual income in recent years.

First to establish a baseline; NWtel's published Annual Report for 2006 included a table which noted net income from 2000 ($14M) rising to $18.17 million in 2006. This yield was from serving the approximately 100,000 population of personal and business accounts North of 60.

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…” I can now better understand why NWTel would be hesitant to publishing their Annual Report where we - their customers - can read it.

Although I'm glad to have discovered the CRTC site because it has much more information in it than you would hope to find in a corporate annual report, for example: "… Despite this, [income] Northwestel has failed to make the necessary investments in its network as evidenced by the company's aging infrastructure and the unavailability of services in many remote communities comparable to those provided in the rest of Canada…”

It's a good read and you can find it all here: http://www.crtc.gc.ca/eng/archive/2011/2011-771.htm

Up 0 Down 0

Francias Pillman on Mar 13, 2012 at 11:28 am

There won't be any competition. What Northwestel is proposing would protect their monopoly. The CRTC is a joke, and the same goes for Northwestel. Thanks for getting our hopes up. We were duped into thinking the CRTC is on our side. How has Northwestel keep their monopoly for so long? I think you know the answer.

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Yvonne Watson on Mar 13, 2012 at 10:32 am

I work in Europe for an international company. My global cell phone works in all of Europe and North America..... Except the Yukon! What's with NWtel? The Yukon wants convention and tourist business. Make sure you tell that high powered business man he can't contact his company while away in the Yukon. Get with the program, NWtel!

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Groucho d'North on Mar 13, 2012 at 7:54 am

Has anybody tried to find a recent (2010-11) NWTel Annual Report? I was curious about what their P&L might have been for the past few years.

I guess they don't want us to know...I wonder why?

Up 0 Down 0

robin on Mar 13, 2012 at 7:12 am

How can the City even propose this. Even their own website is hosted outside of the Yukon.

Up 0 Down 0

mark on Mar 12, 2012 at 1:14 pm

Northwestel. Competition can't come fast enough. I'll be switching asap.

Up 0 Down 0

Colin Morris on Mar 11, 2012 at 6:00 pm

Ha ha ha....I'm thinking it must be pretty bad when Marilyn Stebner tries to deflect Northwestel's criticism onto the City. Let the city deal with their problems, but this article is about Northwestel's and it's problems, which Northwestel clearly has, as shown by the CRTC. Marilyn, it's about time your company Northwestel starts acting in the best interest of the general public.

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game change on Mar 11, 2012 at 5:03 am

This is far too little to be of any significance in addressing excessive usage charges.

My vote goes to free Wi-Fi owned and operated by local communities.

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jack p on Mar 9, 2012 at 3:51 am

Florence has no idea that her proposed billing model would drive up prices and open the door for NWTel to charge for data packets by Kilometer. NWTel would have to change its billing systems and network...adding more costs, driving prices up further.

Do your due diligence or stay in the kitchen Florence.

Up 0 Down 1

marilyn Stebner on Mar 8, 2012 at 11:20 pm

Must be pretty bad when the city of Whitehorse has nothing better to do than complain about Northwestel when they should be looking in their own backyard. Like the lack of snow removal, high rates for water and garbage pick up, and god forbid you have an extra bag of garbage.

Northwestel has provided jobs for many people for many years, so talk about someone else for a change.

Up 0 Down 0

M.D. on Mar 8, 2012 at 12:38 pm

Well, I do see an item for "long distance" charges on my internet bill.

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June Jackson on Mar 8, 2012 at 3:34 am

Good luck with that Florence...

Its a given that a 'soul' has to be involved in order to care about other people or events.

Northwestel has $ signs in both eyes..it can't see anything else.

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michael on Mar 8, 2012 at 1:09 am

gosh, how many people support his? How many of those actually got further than kindergarten?

none I guess. If you don't understand the internet don't try to sound like a smarta33 and stick to smoke signals...

Up 0 Down 0

jack p on Mar 7, 2012 at 9:54 am

No carrier in the world differentiates between local and long distance internet traffic and no carrier in the world bills the customer for it that way.

This article is silly....

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