The Financial Post reports in its Saturday edition that the telco regulator is starting to devise how it will shift subsidies for telephone services to broadband after declaring Internet access a basic service late last year.
The Post's Emily Jackson writes that last week the CRTC launched the first proceeding to plan how to phase out the phone subsidies provided to operators that serve rural residents. The money will instead go into a $750-million fund for broadband in remote areas over the next five years, announced in December to much fanfare though the CRTC has yet to unveil a plan to dole the cash out to high-speed-hungry towns.
The CRTC recommends axing subsidies by Jan. 1, 2018, in locations where it deems the local market is sufficiently competitive. In places where there is not enough competition, the CRTC proposes keeping the subsidy unless reliable broadband Internet access is available.
Northwestel, the BCE-owned provider that serves the North, will continue to receive subsidies based on this proposal. Interested parties have until May 25 to weigh in on the CRTC's proposed approach. This includes whether Internet download speeds of 1.5 mbps over existing phone lines count as reliable broadband.
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