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Telecom Order CRTC 2022-327

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Ottawa, 1 December 2022

Public record: 1011-NOC2019-0372

Broadband Fund – Acceptance of statement of work for South Kountry Cable (2022) Ltd.’s access project in British Columbia

Background

  1. In Telecom Decision 2022-82, the Commission awarded up to $763,734 to South Kountry Cable (2022) Ltd. (South Kountry) to build and/or upgrade local fixed access infrastructure for the project proposed in its application filed in response to the second call for applications for funding from the Broadband Fund. The Commission later received written acceptance of this funding award from South Kountry.
  2. The Commission received South Kountry’s proposed statement of work, including the information package regarding its access project in British Columbia (the project).

Commission’s analysis

South Kountry’s request for an increase in funding

  1. During the development of its statement of work, South Kountry submitted a request for a $277,992 increase in funding for the project. South Kountry submitted that this request was a result of (i) changes in equipment that would improve the sustainability, resiliency, and cyber security of the project; and (ii) an increase in the costs of third-party labour that had not been anticipated when the company submitted its application.
  2. The Commission is satisfied that this request is well supported in the particular circumstances of this project. Accordingly, the Commission approves funding for up to $1,041,726 for the project.

Statement of work

  1. Having reviewed the documents submitted, the Commission approves the finalized statement of work and will provide it separately and in confidence to South Kountry.
  2. Provided that South Kountry complies with all conditions of funding set out in Telecom Decision 2022-81, constructs the project as described in Schedule A: Statement of Work, and complies with all procedural requirements to submit reports, invoices, and requests for funding, the Commission will direct the Central Fund Administrator to make payments to South Kountry in respect of the project. Failure to comply with these conditions and requirements could result in funding being delayed or not being disbursed.
  3. The Commission reminds South Kountry of the condition of funding set out in subparagraph 35(f) of Telecom Decision 2022-81. This condition is that if South Kountry becomes aware of a risk of adverse impact on an Aboriginal or treaty right and a duty to consult exists, South Kountry must advise the Commission within 20 days and submit a plan detailing the form and process for fulfilment of the duty. Should such circumstances arise, the release of any additional funding will be contingent on South Kountry demonstrating that any necessary consultations were held to the Crown’s satisfaction.
  4. South Kountry is required to submit, quarterly, a progress report and expense claim beginning no later than 20 March 2023, or as otherwise agreed to with the Commission, and every three months thereafter until the project is completed.
  5. Further, in accordance with the Commission’s determinations in Telecom Decision 2022-81, South Kountry must offer and provide broadband services using facilities funded through the Broadband Fund once the infrastructure is built, as committed to in its application and approved in Schedule B: Project Services.

Policy Directions

  1. The 2006 Policy DirectionFootnote 1 and the 2019 Policy DirectionFootnote 2 (collectively, the Policy Directions) state that the Commission, in exercising its powers and performing its duties under the Telecommunications Act (the Act), shall implement the telecommunications policy objectives set out in section 7 of the Act, in accordance with the considerations set out therein,Footnote 3 and should specify how its decisions can, as applicable, promote competition, affordability, consumer interests, and innovation.
  2. The Commission considers that its approval of funding from the Broadband Fund for the project described in this order is consistent with the Policy Directions. Specifically, the decision to allocate funding towards improving broadband services in British Columbia will help to close the gap in connectivity in underserved areas and will respond to the social and economic needs of consumers. In doing so, this order will implement the telecommunications policy objectives, including those set out in paragraphs 7(a), (b), and (h) of the Act.Footnote 4

Secretary General

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