In January of 2025, the CRTC launched a proceeding to seek comments on how to best implement a retail subsidy for the Far North. The Commission invited comments on the following issues regarding the retail Internet service subsidy in the Far North:
- subscriber eligibility;
- monthly amount and calculation method;
- roles and responsibilities of the Commission and third-party administrators;
- distribution of funds;
- measures to promote transparency and accountability; and
- the Commission’s approach to monitoring.
FMCC worked with a number of stakeholders in the Northwest Territories to develop a number of recommendations and points including the following:
• This is a consumer subsidy, not a provider subsidy. It attaches to eligible consumers and must therefore be portable; i.e. the consumer or customer can use it with any eligible provider, and can retain the subsidy if they change providers.
• Multiple strategies will be required to ensure that northern consumers are aware of this subsidy program and how to apply. Our position is that the application process could be eliminated if it is assumed that all residential customers plus others that qualify are AUTOMATICALLY included.
• Monitoring will be required to ensure that providers maintain adequate quality of service and do not absorb the subsidy in rate increases.
• The Commission should examine the need for operating subsidies in addition to consumer subsidies. Some providers have stated that they must maintain affordable prices, but struggle to cover the costs of operating and maintaining their networks. While operating subsidies may be outside of the scope of these current proceedings, the Commission should consider launching a separate consultation focused on those matters, potentially in the forthcoming proceedings regarding the Indigenous stream of the CRTC
Broadband Fund.
• As Commissioner Anderson has argued, competition should be encouraged as a means of providing incentives for reliable services at affordable prices. Therefore, small and new providers should be eligible to participate in any subsidy program.
• Conditions in the remote North are similar to the Territories in the northern regions of seven provinces. While we recognize that these proceedings are an outcome of the review of Telecommunications in the Far North (CRTC 2022-147) our position is that any adopted subsidies should apply to all of these regions, not just those in northern British
Columbia.
You can find FMCC’s submission here.