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Deferral Implementation Schedule

(Reviewed 21 Nov 11))

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This page was reviewed on 21 Nov 11 and contains the information available at that time.

Deferral Account News 21 Nov 11

I  sent the following message to Mr. Bryan Hayes, MP Sault Ste Marie. This is a follow-up to previous correspondence.

Hello Mr. Hayes and Jody:

I wonder if you have any additional information concerning  the status of the appeal by Rogers to the Governor-in-Council (GIC) dated January 26, 2011, in which Rogers requests that the GIC vary Telecom Decision CRTC 2010-805, Bell Canada – Applications to review and vary certain determinations in Telecom Decision 2010-637 concerning the use of high-speed packet access wireless technology and the deferral account balance.

As noted on the above link, the notice of the Rogers appeal was published on March 10, 2011 and had a 30 day comment period. The Industry Canada/Spectrum Branch website published a list of comments received with a “modification” date of “2011-05-27.” I take this to mean that since this is after the 30 day limit it contains all the inputs submitted to assist the GIC in arriving at a decision.

Subsequently, Bell filed a request for judicial review of the Rogers GIC appeal with the Federal Court.

The Bell application was heard in Federal Court in Ottawa on 12 Sep 11 and the Court rendered its decision on 29 Sep 11. This is an extract from the Court’s website. The court number is T-514-11:
Reasons for Judgment and Judgment dated 29-SEP-2011 rendered by The Honourable Mr. Justice Russell Matter considered with personal appearance The Court's decision is with regard to Judicial Review (s.18) Result: Dismissed.  THE COURT'S JUDGMENT is that: 1. The application is dismissed. 2. Rogers and the Minister shall have their costs in this matter. Filed on 29-SEP-2011 certified copies sent to parties Final Decision Certificate of Judgment entered in J. & O. Book, volume 1135 page(s) 366 - 367

This would seem to place the ball back in the government’s hands.

There are areas within the riding, namely SSM-Airport (Pointes areas), Goulais, Echo Bay and St. Joseph Island that have a vested interest in the outcome of the GIC decision. In particular, implementation of the Deferral Account program will significantly reduce the cost of broadband (high speed) Internet service in the affected areas, in some case from the $130.00 range to less than $50.00 monthly. The Deferral Account program will also close the last noticeable gaps in broadband (high speed) Internet coverage in the riding (with the exception of Red Rock). A graphical representation of broadband (high speed) Internet coverage in the riding is available at this link where you can zoom in and click on the symbol to get additional information.  

In some cases, users living in the Deferral Account designated areas can get access to broadband (high speed) Internet service using the technology offered by Bell in the CRTC Deferral Account submission, but Bell is not offering the Deferral Account rates as approved by the CRTC in Decision 2010-637.

I realize there was an election and change of minister since original Rogers’ appeal but it seems for an issue like the Deferral Account implementation which was initiated in 2004 and has suffered through CRTC regulatory review, Supreme of Canada legal review, and now additional federal Court review, it is time to get a final decision from the GIC. As long as the spectre of the Deferral Account appeal hangs over the project, it will continue to spin its wheels and the residents of the Sault Ste Marie riding will be  the ones to miss out on the benefits of reasonably priced broadband (high speed) Internet access.

Thanks you for your consideration to this matter.

 Deferral Account News 15 Aug 11

Bell continues to show signs of moving ahead with the Deferral Account. Bell issued a notice of public consultation for a new tower in Nokomis Beach within the SSM-Airport Deferral Account area. Further details are available on the ADnet in Algoma blog site.

There is nothing new to report on the other Deferral Account areas.

SSM–Airport Deferral Account News 08 Jun  11

This the most recent information concerning the status of the Bell Deferral Account (DA) program as it pertains to the Algoma District DA areas of Echo Bay, Goulais River, St. Joseph Island and SSM – Airport.  

The original schedule as shown below has not been formally amended and as far as can be determined still stands.

 DA Sched Algoma

As noted in my blog of 20 May 11 Bell has started the site selection process for the SSM–Airport DA area.

However, again as identified in a previous blog, Rogers submitted an appeal to the Governor in Council (i.e. the Federal cabinet - in this case to Industry Canada) asking for a review, reversal and amendment of the Telecom Decision CRTC 2010-805 that allows Bell to use HSPA technology to implement the DA services.

The Rogers appeal asked the cabinet to permit Bell to use the Deferral Account funds to implement service in the areas already scheduled for 2011, such as SSM-Airport, albeit at a reduced amount. Rogers further asked that the CRTC allot the remainder of the DA areas and the associated DA funds to the winners of an auction process open to all competing vendors.  

Industry Canada received five written responses to their request for comment on the Rogers appeal. Not surprisingly, Barrett Xplornet, Eastlink, and GlobeAlive Wireless supported the Rogers position in various forms while Bell and Telus were against the appeal. The links to all the submissions are available on the Industry Canada (IC) website.

In a separate but associated move, Bell filed an application for judicial review of the Rogers appeal with the Federal Court on 28 Mar 11. The application hearing is scheduled to be held in Toronto on 12 Sep 11. The date of a decision from the Federal Court is unknown.

 On the positive side both Bell and Telus in their submissions to IC made the point that the implementation process, including budgets, for the entire DA schedule is in their current planning cycles.

SSM–Airport Deferral Account News 20 May 11

It appears that Bell Canada is moving ahead with Deferral Account development work in the SSM – Airport areas. This is in spite of the appeal submitted by Rogers to the federal cabinet.

Bell Canada hosted a public information meeting in Sault Ste. Marie Sault on 19 May 11 to receive input and comment on two new cell sites proposed for the Sault west end. This is part of the formal process required by Industry Canada regulations pertaining the construction of new towers. No objectives were raised about the sites. This is not surprising as I was the only one from the public in attendance.

The sites are to be located at 978-B Second Line West (near Allens Sideroad) and Carpin Beach Road near Second Line West.

The first site is a gap filler site funded by Bell but the Carpin Beach Road site in the middle of one of the Distribution Serving Areas (DSA) designated as a Deferral Account area. The Bell representative further indicated that he would be checking sites in the Nokomis and Pointe Louise areas as part of the Deferral Account roll out

These actions seem to indicate that the program schedule published in Feb 2010 showing a 2011 construction start date and 2012 start date is still valid.


 

Rogers Appeals to Cabinet  24 Mar 11

The word coming out of Ottawa is that the other shoe has dropped on the Deferral Account issue.

During the Deferral Account review process,  Rogers threatened to appeal to the federal cabinet any decision by the CRTC to approve Bell’s use of Deferral Account funds to provide broadband service using 3G HSPA cellular technology. Nevertheless, the CRTC moved ahead and approved the Bell application. 

Rogers did indeed file a petition and is asking the federal cabinet to direct the CRTC to rescind the decision and establish a competitive process to allow potential Bell competitor to gain access to the Deferral Account funds if they can provide the equivalent or better broadband service more cost effectively than Bell’s proposal. 

The impact this appeal process will have on the Deferral Account schedule is unknown at this time. 

CRTC Approves Bell Deferral Account Proposal 29 Oct 10

On Friday, 29 Oct 10 the CRTC issued Telecom Decision CRTC 2010-805 approving the use by Bell Canada of 3G HSAP+ cellular based technology to provide (high speed) Internet to the 112 designated unserved areas. This ruling confirms the Bell proposal detailed in their 13 Sep 10 submissions.

It now remains to be seen if the other carriers or public interest groups will launch further appeals.

The Deferral Account areas in the Algoma District are SSM-Airport (Pointes areas),Wawa, Goulais, Echo Bay and St. Joseph Island.

 This remains the only implementation schedule made public by Bell.

 DA_Sched_Spread

Bell Appeals CRTC deferral Account Ruling on 13 Sep 10

Not unexpectedly, on 13 Sep 10 Bell launched an appeal of the CRTC Deferral Account Decision 2010-637 with the key feature of calling on Bell to use DSL technology.

The appeal has two main components: – it challenges the CRTC’s right to dictate which technology Bell can use to provide broadband service in the Deferral Account areas and the amount of money the CRTC identified as accrued interest on the Deferral Account funds held by the telcos. 

In addition the appeal addresses the issues raised by the Commission concerning the need to match existing Bell urban broadband services; Bell calls this the  Urban Service Comparability Requirement.

To meet these requirements Bell amended the original application (created a new application?) with significant increases in monthly data limits (Caps) and an usage insurance option of $5.00 per month for an additional 40 GB. This is the same feature available to current DSL subscribers. This means a consumer could get up to a 7 Mbps download with a 65 GB cap for $46.95 plus taxes and fees.

These changes address my major concerns with the original proposal. If the Bell ends up being allowed to implement this solution, I believe it will satisfy the majority of users in the Algoma District Deferral Account areas.


A COMPARISON OF THE ORIGINAL AND PROPOSED SPEED AND RATE  STRUCTURE

 

Original HSPA Broadband Service Proposal

Proposed HSPA+ Retail Broadband Services

Province

Ontario

Ontario

Service Name

N/A

Home Zone Wireless

Home Zone

Wireless Plus

Monthly Rate

$31.95

$31.95

$41.95

Download Speed

Up to 2 Mbps

Up to 2Mbps

Up to 7 Mbps

Upload Speed

Up to 800 Kbps

Up to 1 Mbps

Up to 3 Mbps

Monthly Usage Allowance

2 GB

2 GB

25 GB

Monthly Charge for Additional Usage

$2.50/GB

$2.50/GB, maximum of $30 per month

Usage Insurance

N/A

$5.00 per month for extra 40 GB

Activation Fee

$35.00

$29.95

Hardware

Turbo Stick provided at no charge

Turbo Hub: $3.95 monthly rental fee

Term

Monthly

Monthly

 

The Bell appeal submission proposes the following timeline: -  “Interested parties would have 30 days from the date of this Application (e.g., no later than 20 October 2010) to comment and the Company [Bell] would have 10 days thereafter (e.g., no later than 1 November 2010) to file its reply.”

Furthermore “ …Company requests that the Commission confirm in its forthcoming process that it will issue its decision in respect of this Application no later than 90 days from the date of Decision 2010-637, or by 29 November 2010 in order to preserve the Company's rights pursuant to petition the Governor in Council for the review, variation and rescission of the DSL Technology Directive pursuant to section 12 of the Act.” 

I believe the CRTC is now on the horns of a dilemma: if they rule against Bell, then Bell will petition the Governor in Council (i.e. the Federal Cabinet); if they rule in favour of Bell, one or more of the other HSPA or vested interest parties will appeal or take legal action.

It will be interesting to watch Bell explain how it can offer this level of service for Deferral Account areas at the  prices proposed compared to the prices it charges its regular HSPA data customers in other areas.

 

CRTC Decision on Deferral Accounts - 31 Aug 10

In Telecom Decision CRTC 2010-637 released on Tuesday, 31 Aug 10, the Commission approved the use of $306.3M of Bell Deferral Account money to provide DSL based broadband (high speed) Internet service in the selected service areas.

The released confirm the that five areas in the Algoma District were included in the decision - namely SSM -Airport (Pointes areas), Wawa, Goulais, Echo Bay, and St. Joseph Island. The press release showing the Canada-wide listing is available from the CRTC website. 

There was no indication this decision would have on the schedule of the rollout as previously announced and shown below

Bell Implementation Schedule - 26 Feb 10

On 26 Feb 10, Bell Aliant submitted their schedule for the implementation of the HSPA 3G proposal submitted on 15 Jan 10. The full version is available for download in ZIP format at the CRTC website:
http://www.crtc.gc.ca/PartVII/eng/2008/8638/c12_200817505.htm

A big surprise was that Bell Aliant listed all the communities identified in the original 2007 document submitted to the CRTC and approved in principle in the CRTC Telecom Decision 2008-1.

In the case of the Algoma District, 5 areas were listed whereas only 3 areas were identified as Deferral Account areas in the database used for the Broadband Canada program. The impact of the two programs using what appear to be different databases is unknown at this time as Broadband Canada has yet to make any vendor selection announcements.

The other area of concern is the rather extended timeline with the first Algoma District area not receiving service until 2012.

DA_Sched_Spread

Deferral Account Maps as Submitted by Bell Aliant in 2007
Deferral Account areas marked in Purple
No map available for Echo Bay

Goulais DA Map SSM Airport DA
St Joseph DA Wawa DA Map