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Northwestel rival calls foul

SSIMicrosaysit'sbeingunfairlypricedoutofmarketandcannotcompete
withrisingdataplans

SearchNNSL

WalterStrong
NorthernNewsServices
PublishedTuesday,November11,2014
SOMBAK'E/YELLOWKNIFE
ThesecondlargestconsumerhomeInternetproviderintheNWTwillshortlybefilinga
newappealwiththeCanadianRadiotelevisionandTelecommunicationsCommissionto
reexamineNorthwestel'swholesalepricingstructureamidquestionsofunfair
competition.
Thiscomesontheheelsof
Northwestel'sannouncementlast

weekthatitwouldbeincreasing
increasingdatausagelimitsacross
allofitsconsumerInternetrate
packagesbyapproximately40per
cent,withoutadditionalchargesto
theconsumer.
ThemovehasDeanProctor
scratchinghishead.
TheSSIMicrochiefdevelopment
officersaidtheircompetitoris
offeringconsumerbroadbandfor
lessthanhiscompanycanpurchase
atwholesalerates.

SSIMicroischallengingNorthwestel'sabilitytoofferretail
internetforwhatitdescribesaslessthanwholesalerates.The
companywillonceagainasktheCRTCtoexamine
Northwestel'swholesaleratestructure.JoshLong/NNSL
photo

"Theonlythingthatcouldexplain
(this),isthatNorthwestelissetting
itspricingforcompetitors.todriveusoutofthemarket,"ProctortoldtheYellowknifer.

ProctorsaidSSIMicrowillbefilinganapplicationwiththecommissiontoreexamineand
forceNorthwesteltodropthewholesaleratesitchargestocompetitors.
"It'sveryclearthatthebackboneratesthey'rechargingusarefartoohighiftheycan
justifysignificantlylowerretailrates,"Proctorsaid.
TheheartoftheproblemisthatNorthwestelownsandmaintainsthephysicallinethat
connectstheNorthtothesouththroughHighLevel,Alta.
AnyNorthernresellerhastopurchaseashareofthatbandwidthandrepackageit.
Proctordescribesthisasaclearmonopolyoftheservice,whichheallegesNorthwestelis
usingtodrivecompetitorsoutofthemarketplace.
PartofProctor'sconcernisthatinthelongruntheconsumerwillloseifthisisallowedto

happen.
"Iftheycanofferthatdatausageandmakemoneyfromit,that'sgreatforconsumers,"
Proctorsaid.
"What'sbadforconsumersisthatNorthwestelisrunningup...enoughbarriersforusand
othercompetitorsthattheyaregoingtoruncompetitorsoutofbusiness.
"Ifonebelievesthatcompetitionisgoodforconsumersintermsofmakingratesstay
competitive(with)lowerrates,betterservice,bettertechnologyallthethingsthatcome
withacompetitivemarketthat'snowbeingthreatened."
SSIMicroprovidesnocontract,wirelessconsumerwirelessInternetpackagesin
YellowknifeandelsewhereintheNWT,althoughoverthepasttwoyearsithasbeen
forcedoutof10serviceareasbecauseofwhatProctordescribesasunfairwholesale
pricing.
ProctorsaidSSIMicrocannotcompetewithNorthwestel,especiallyatthenewdata
usagelimits.
"Wewouldlovetobeabletoincreaseouruseage(caps)butwecan'tbecauseofthe
chargesthey(Northwestel)areimposinguponus."
"We'dbebetteroffbuyingtheir(retail)serviceandresellingittoourcustomers,"Proctor
said.
"We'dbelosinglessmoney."
Thisisn'tthefirsttimeSSIMicrohasaskedthecommissiontointerveneonthewholesale
ratesNorthwestelchargestocompetitors.
SSIMicrohasenjoyedwhatProctordescribedasvictoriesinthepastthanksto
commissiondecisionsthatresultedincheaperwholesalepricesforSSIMicro,which
allowedthecompanytoincreaseitsdatapackagesforconsumers.

ButProctorsaidsincethenNorthwestelhasbeensuccessfultoadegreeinappealingthe
decision,meaningwholesalerateshaveincreasedsincelastDecember.
NorthwesteldenieditissellingretailInternetserviceforlessthanwholesalecost.
"Northwestelisnotsellingservicesbelowcost,andhasfileddetailedinformationwiththe
CRTConourInternetpackages,"statedNorthwestelcommunicationsmanagerKerron
Williamsinanemail.
"Thereisnojustificationtorevisitwholesaleratesasthoseserviceshavebeenreviewed
andapprovedbythecommissionwithstandardindustryacceptedcostingprinciples."
ProctorsaidSSIMicro'splanistofiletheappealassoonaspossible.
Wewelcomeyouropinions.Clickheretoemailalettertotheeditor.