Telecom Trends

In its first major decision of the year, the CRTC has given the final go-ahead to roll out broadband to more than 350 rural communities across Canada. Decision 2008-1 takes $650M that had been accumulated in excess local fees paid to incumbent local carriers (ILECs) by subscribers in urban markets and uses the money to subsidize rural broadband service.

The Commission has given the ILEC telcos two months to confirm their ability to launch service by the end of 2011 - any remaining funds get returned to urban subscribers - presumably those who have remained with the ILECs, although the CRTC has asked for proposals on how the money can best be returned.

It is a lengthy read, aided by appendices with detailed listings of communities and service areas. The Commission recognized that various technologies, including unlicensed fixed wireless services, will provide quality broadband experiences for consumers.

The ILECs are also spending 5% - or around $30M - on enhancing telecom services for Canadians with disabilities, including some innovative enhancements to classic message relay services.

There will be more to emerge on this file

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Update [January 18, 11:30 am]
Catherine McLean's story in the Globe suggests that about half the deferral account - around $300M - will be rebated to urban consumers.

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CRTC, rural broadband, ILEC