On April 13th, 2010, we wrote a note to our MP the Honourable Rona Ambrose asking for her help in getting the attention of Industry Canada to help resolve our issues with respect to unloaded copper and access to broadband for Albertans. We are grateful to our Minister for her prompt and solicitous attention to this issue. Here is the issue as we presented it to her for presentation to Tony Clement.
March 5, 2010
The Honourable Rona Ambrose
There is an untenable situation in Alberta to which I wish to draw your attention, and ask for your help.
Technically this is a complex issue, but if we set aside the complexities, I believe I can whittle this down to some basic elements.
My company, The Internet Centre, would like to deliver broadband Internet services to the rest of the small rural communities in Alberta that don’t currently have such services. We want to do this by renting from Telus a service called “unloaded copper”, which is essentially the rental of the unused extra pair of phone wires that are in place in Alberta residences and businesses. We used to rent these services years ago when we were the first Internet Service Provider in places like Red Deer, Ft. McMurray, Edmonton, many more.
Here, in bullet form, is the issue:
1. Under CRTC rules, this “unloaded copper” service was a tariffed service, provided willingly by Telus prior to 2004, and by Bell, Manitoba Telephone, Sasktel and other ILECs, today.
2. We used to rent these services from Telus, and deployed equipment to take advantage of this service to reach Albertans in cities and towns referred to above, starting in 1995.
3. In 2000, Telus provided us with an alternative, wholesale service, so we slowly switched from using our own equipment to Telus’ wholesale service, in the larger Alberta centres.
4. At the time, it was uneconomic for Telus or ourselves to provide the smaller towns with such service.
5. The installation of the Alberta Supernet into most towns in Alberta radically changes the economics for us in providing broadband services, especially in the 261 communities that have Supernet and no local broadband services. Use of “unloaded copper” allows us to connect businesses and residences in these communities locally, using the Alberta Supernet as the backbone to connect our local service to the rest of the world.
6. In September, 2004, the CRTC approved a request from Telus to restructure a number of Tariffs pertaining to Telus (Approved with conditions in Telecom Order CRTC 2004-329) that allowed Telus to remove the ‘unloaded copper” tariff, we believe against CRTC rules.
7. Bell tried to remove the exact same tariff, but did it openly and specifically through a Part VII request, and that request was rejected soundly by the CRTC. In fact, Bell was required to file an updated tariff for a LDDS service, which is an improved unloaded copper service provided to competitors.
8. The Internet Centre discovered in 2008 that this unloaded copper tariff under which it used to provide services to Albertans had been eliminated.
9. The Internet Centre issued a Part VI complaint in 2008 to demand access to this service, which was rejected.
10. The Internet Centre then issued a Part VII competitor complaint filed August of 2008 (2008-07-08 - #: 8622-T114-200809403) to demand access to this service.
11. After a year of deliberation, the CRTC ruled against our request, but suggested that we negotiate with Telus.
12. The Internet Centre and Telus negotiated in we believe good faith, but after 6 months, no progress was made, and both sides agreed in early December 2009, that no Agreement was forthcoming.
So here is the problem:
The Internet Centre and its competitors throughout the Province could IMMIEDIATELY provide broadband services to underserved or nonserved areas of Alberta, using a combination of unloaded copper loops and Alberta Supernet. This would provide meaningful, affordable, competitively priced world class broadband to the smallest of Alberta communities. A rough guess is this would mean roughly another 250,000 Albertans would have access to broadband in areas to which Telus and Shaw have specifically stated they will not provide services. BUT TELUS AND THE CRTC WILL NOT ALLOW US TO PROVIDE THESE SERVICES.
Let us be clear: Competitive Service Providers in other Provinces except Alberta and B.C have CRTC mandated, tariffed access to unloaded copper. In fact it is an industry standard throughout most of the world that the Incumbent phone companies provide access to unloaded copper loops in order to promote a healthy, competitive telecommunications environment. The only place in Canada that companies are specifically barred from accessing unloaded copper loops is in Alberta and B.C.
The CRTC in our view erred in their Decision against us in three main points:
1. Neither Telus nor the CRTC responded to our allegation that Telus illegally eliminated the unloaded copper service from its Tariffs. It is absolutely obvious that Telus did indeed not get permission to remove this service. The CRTC won’t address the issue.
2. The CRTC said that putting in our equipment MIGHT cause interference with Telus equipment. Our equipment is Industry Standards Canada approved for use because it has been specifically tested for interference, and produces none. Such equipment works without interference in other parts of Canada. The CRTC is ignoring the tests and rulings of the ISC and that is plain wrong.
3. The CRTC says we cannot economically provide the proposed service on unloaded copper. Of course we can make money. We are BUSINESS people. The CRTC is simply wrong. Ridiculous.
The CRTC erred in its Decision against us, but more importantly, the CRTC clearly provides an advantage to eastern Canadians not enjoyed by us in the west. The CRTC is arbitrary, unfair, and anti-competitive. In my view they provided an incompetent Decision. And Albertans cannot take good advantage of the Alberta Supernet that they paid for, because competitive service providers are barred from getting access to the last mile infrastructure between the Alberta customer and the Supernet.
We need political help to resolve this. A cogent, professional, Part VII filing didn’t work when it clearly should have. Industry Canada needs to provide instructions to the CRTC to treat ALL Canadians, including Albertans, equally.
Can you give not just us, but all Albertans a hand, please?
--
Graham Fletcher
The Internet Centre.
Edmonton, Alberta
