In a decision that will affect many Northern Canadians, the Canadian
Radio-television and Telecommuncations Commission (CRTC) will require
Northwestel to lower rates for residential low-speed Internet services by 10 to
30 per cent.
The decision is the latest aspect of the modernization plan ordered by
the CRTC in 2011. Northwestel's Internet rates were called
into question by the CRTC in late 2013. Rates in the territories often
approached three to four times those in Southern Canada.
"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," CRTC Chairman Jean-Pierre Blais said in a statement.
"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."
Northwestel is required to reduce the rates for its DSL Internet
Lite and DSL Internet 2 rate plans by 10 per cent. The company's rates for its
DSL Internet 5 and DSL Internet 15 plans will be required to come down by 30
per cent.
Northwestel has also been told by the CRTC not to increase any of its
residential Internet rates until the end of 2017 at the earliest, and only with
the permission of the CRTC.
The telecom provider will also no longer be allowed to charge
additional fees to customers who only use Internet services, and don't
subscribe to a bundle with telephone service. It has also been required to
lower charges for customers who go over the data usage allowed in their
Internet plans by at least $0.50 per gigabyte. In the Northwest Territories,
Northwestel currently charges $2 to $3 for every gigabyte customers use
above the limits set in their plans.
John Macri, director of telecommunications policy for the CRTC,
says the commission looked at the cost of delivering service and profit
margins and believes Northwestel can afford to cut its rates and keep
providing a service.
"We wouldn't think today's changes would have a significant impact
on their ability to do that," he said.
"It will possibly result in lower revenues, but it may possibly
result in more demand as more customers are able to afford this service."
That change must take effect by February 2016, but customers
should see reductions in their monthly bills by May 4, 2015, according to a
statement released by the CRTC.
Northwestel says it won't comment until it has examined the ruling
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