[Advisors] FW: [CommunityInformaticsCanada] Justify backbone access pricing, CRTC says to NorthwesTel

Thu, 12 Jan 2012 01:38:09 -0800

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-----Original Message-----
From: cracin-canada-owner@vancouvercommunity.net
[mailto:cracin-canada-owner@vancouvercommunity.net] On Behalf Of
media@web.net
Sent: Wednesday, January 11, 2012 9:36 PM
Subject: [CommunityInformaticsCanada] Justify backbone access pricing, =
CRTC
says to NorthwesTel

Justify pricing, CRTC says

NorthwesTel told to publish rates for its V-Connect service and prepare =
cost
studies=20

Thandiwe Vela=20
Northern News Services
Published Wednesday, January 11, 2012

SOMBA K'E/YELLOWKNIFE=20
NorthwesTel Inc. has been ordered by The Canadian Radio-television and
Telecommunications Commission (CRTC) to publish the rates for its =
V-Connect
backbone connectivity service, following a complaint of unfair pricing =
filed
by Yellowknife-based Internet service provider SSI Micro Ltd.=20

The decision, released last Thursday, which requires NorthwesTel to =
prepare
cost studies to justify the service price, is expected to make the rates
currently charged for the service "significantly less," SSI chief
development officer Dean Proctor said.=20

"I don't know how it could not be (cheaper)," Proctor said, noting
NorthwesTel currently charges SSI Micro up to 30 times, or 3,000 per =
cent
higher, than rates in southern Canada for the service.=20

"We could not in any way, shape or form figure out how they came to that
pricing apart from them trying to not allow us to use it," Proctor said. =

SSI Micro filed the application requesting the commission's intervention
last June, accusing NorthwesTel - the owner of all fibre and microwave
connectivity to the south - of using its position as the sole provider =
of
backbone connectivity services "to eliminate SSI and other Internet
providers as competitors in the Yellowknife Internet market."=20

NorthwesTel argued that there was no basis for SSI Micro's application
because the backbone connectivity services fit under the classification =
of
data service which is forborne, meaning the commission does not need to =
see
or approve its pricing.=20

SSI Micro argued that V-Connect is not foreborne because it is a service
that supports voice, data, and video services.=20

more at=20

http://nnsl.com/northern-news-services/stories/papers/jan11_12crtc.html

Background

SSI Micro accuses NorthwesTel of discriminatory pricing

Complaint filed with CRTC against NorthwesTel and appeals to customers =
for
support

Thandie Vela
Northern News Services
Published Wednesday, July 27, 2011 SOMBA K'E/YELLOWKNIFE=20
Yellowknife-based Internet service provider SSI Micro has filed a =
complaint
with the Canadian Radio-television and Telecommunications Commission =
(CRTC)
against NorthwesTel, accusing the telecommunications provider of
discriminatory pricing.

To provide retail Internet services in Yellowknife, SSI Micro relies on
NorthwesTel -- the owner of all fibre and microwave connectivity to the
south -- for the backbone, or "backhaul" services, that connect the =
local
Internet users to the rest of the world. For the service, NorthwesTel
charges rates up to 30 times, or 3,000 per cent higher than rates in
southern Canada, said Dean Proctor, chief development officer for SSI =
Micro.

"In the North, people have come to expect a bit of a premium but that =
does
not mean 30 times higher," Proctor said. "It's just a massive =
disproportion
from what pricing should be."=20

Among the requests in SSI's application to the CRTC, the company is
requesting the commission to require NorthwesTel to offer backbone
connectivity to Internet service providers operating in the North at no =
more
than twice the market rate in the south.=20

"There is no question that if NorthwesTel is obliged to lower its =
backhaul
rates to rates we are asking the CRTC to put in place, that consumers =
will
benefit from lower rates from us," Proctor said.=20

http://www.nnsl.com/frames/newspapers/2011-07/jul27_11ssi.html

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<DIV></DIV>
<DIV dir=3Dltr lang=3Den-us class=3DOutlookMessageHeader =
align=3Dleft>-----Original Message----- From:=20
cracin-canada-owner@vancouvercommunity.net=20
[mailto:cracin-canada-owner@vancouvercommunity.net] On Behalf Of=20
media@web.net Sent: Wednesday, January 11, 2012 9:36=20
PM Subject: [CommunityInformaticsCanada] Justify backbone =
access=20
pricing, CRTC says to NorthwesTel </DIV>
<DIV class=3Dheadline>Justify pricing, CRTC =
says</DIV> NorthwesTel told=20
to publish rates for its V-Connect service and prepare cost =
studies=20
 Thandiwe Vela Northern News =
Services Published=20
Wednesday, January 11, 2012 
SOMBA=20
K'E/YELLOWKNIFE NorthwesTel Inc. has been ordered by The =
Canadian=20
Radio-television and Telecommunications Commission (CRTC) to publish the =
rates=20
for its V-Connect backbone connectivity service, following a complaint =
of unfair=20
pricing filed by Yellowknife-based Internet service provider SSI Micro =
Ltd. 
The decision, released last Thursday, which requires NorthwesTel to =
prepare=20
cost studies to justify the service price, is expected to make the rates =

currently charged for the service "significantly less," SSI chief =
development=20
officer Dean Proctor said. 
"I don't know how it could not be (cheaper)," Proctor said, noting=20
NorthwesTel currently charges SSI Micro up to 30 times, or 3,000 per =
cent=20
higher, than rates in southern Canada for the service. 
"We could not in any way, shape or form figure out how they came to =
that=20
pricing apart from them trying to not allow us to use it," Proctor said. =

SSI Micro filed the application requesting the commission's =
intervention last=20
June, accusing NorthwesTel - the owner of all fibre and microwave =
connectivity=20
to the south - of using its position as the sole provider of backbone=20
connectivity services "to eliminate SSI and other Internet providers as=20
competitors in the Yellowknife Internet market." 
NorthwesTel argued that there was no basis for SSI Micro's =
application=20
because the backbone connectivity services fit under the classification =
of data=20
service which is forborne, meaning the commission does not need to see =
or=20
approve its pricing. 
SSI Micro argued that V-Connect is not foreborne because it is a =
service that=20
supports voice, data, and video services. 
more at 
http://nnsl.com/northern-news-services/stories/papers/jan11_12crtc.htm=
l
Background
<DIV class=3Dheadline>SSI Micro accuses NorthwesTel of discriminatory=20
pricing</DIV> Complaint filed with CRTC against NorthwesTel =
and=20
appeals to customers for support Thandie=20
Vela Northern News Services Published Wednesday, July 27, =
2011=20
SOMBA K'E/YELLOWKNIFE Yellowknife-based Internet =
service=20
provider SSI Micro has filed a complaint with the Canadian =
Radio-television and=20
Telecommunications Commission (CRTC) against NorthwesTel, accusing the=20
telecommunications provider of discriminatory pricing. 
To provide retail Internet services in Yellowknife, SSI Micro relies =
on=20
NorthwesTel -- the owner of all fibre and microwave connectivity to the =
south --=20
for the backbone, or "backhaul" services, that connect the local =
Internet users=20
to the rest of the world. For the service, NorthwesTel charges rates up =
to 30=20
times, or 3,000 per cent higher than rates in southern Canada, said Dean =

Proctor, chief development officer for SSI Micro. 
"In the North, people have come to expect a bit of a premium but that =
does=20
not mean 30 times higher," Proctor said. "It's just a massive =
disproportion from=20
what pricing should be." 
Among the requests in SSI's application to the CRTC, the company is=20
requesting the commission to require NorthwesTel to offer backbone =
connectivity=20
to Internet service providers operating in the North at no more than =
twice the=20
market rate in the south. 
"There is no question that if NorthwesTel is obliged to lower its =
backhaul=20
rates to rates we are asking the CRTC to put in place, that consumers =
will=20
benefit from lower rates from us," Proctor said. 
http://www.nnsl.com/frames/newspapers/2011-07/jul27_11ssi.html =
</BODY></HTML>

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