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Telecom - Commission Letter addressed to Stan Thompson (Northwestel Inc.)

Ottawa, 11 January 2022

Our reference: 8646-N1-202108175

BY EMAIL

Stan Thompson
Chief Financial Officer & Vice-President
Northwestel Inc. (Northwestel)
3rd Floor,301 Lambert Street
Whitehorse, Yukon - Y1A 4Y4
regulatoryaffairs@nwtel.ca

Subject: Part 1 application filed by Northwestel Inc. dated 6 December 2021

Dear Stan Thompson:

Pursuant to section 37 of the Telecommunications Act,attached is a request for information (RFI) in regard to the above-noted Part 1 application.

As set out in section 39 of the Telecommunications Act and in Broadcasting and Telecom Information Bulletin CRTC 2010-961, Procedures for filing confidential information and requesting its disclosure in Commission proceedings, persons may designate certain information as confidential. A person designating information as confidential must provide a detailed explanation on why the designated information is confidential and why its disclosure would not be in the public interest, including why the specific direct harm that would be likely to result from the disclosure would outweigh the public interest in disclosure. Furthermore, a person designating information as confidential must either file an abridged version of the document omitting only the information designated as confidential or provide reasons why an abridged version cannot be filed.

Responses to this request must be filed with the Commission by 21 January. Interested parties may file comments strictly limited to the information provided in response to this RFI by 26 January, and Northwestel may then file their reply to the comments by 31 January.

Commission staff note that the timelines for this proceeding are also being altered to facilitate the submission of comments on both the application and associated requests for information.

Interested parties now have until 4 February (rather than 28 January) to file an intervention on the substance of this application. Northwestel may file their reply with respect to any interventions filed by 14 February.

A copy of this letter will be placed on the public record of this proceeding.

Yours sincerely,

Original signed by

Lisanne Legros
Director
Telecommunications Networks Policy

c.c.:   Marianne Blais, CRTC, marianne.blais@crtc.gc.ca
Simon Wozny, CRTC, simon.wozny@crtc.gc.ca
Salahuddin Rafiquddin, CRTC, salahuddin.rafiquddin@crtc.gc.ca


Request for Information – Northwestel

  1. Scenario #1: Assume that Northwestel is granted the relief sought in its Part 1 application. Discuss Northwestel’s business plan for competing with Starlink, including what changes Northwestel would make to its retail residential terrestrial Internet service offerings in the short-term and during the course of the proceeding initiated by NoC 2020-367. Northwestel’s answer to this question should include at least the following elements:
    1. What retail residential terrestrial Internet packages, at which prices, in which communities, Northwestel i) currently provides, and ii) intends to provide;
    2. For all packages listed in response to a., provide a pricing schedule, i.e., the timing and number of changes to the services provided that would require filing a tariff notice with the Commission, either with respect to price, service improvements, or otherwise;
    3. Discuss how Northwestel may adapt its plan to compete with Starlink depending on possible future circumstances, including consumer behaviour (for example, customers’ demand for Starlink’s services is lower or higher than expected); when and how Starlink will enter the market (for example, if Starlink enters the market earlier or later than anticipated); future improvements or changes to services provided by Starlink; and any other factor that Northwestel may consider relevant.
    4. Northwestel’s projections with respect to its retail residential terrestrial Internet services, disaggregated by province or territory, on a quarterly basis, of:
      1. subscribers;
      2. revenue; and
      3. market share.
    5. Discuss any assumptions or parameters relied upon above with respect to business plans or projections.
  2. Scenario #2: Assume that Northwestel is not granted the relief sought in the Part 1 application. In this case, discuss how Northwestel’s business plan for competing with Starlink would differ from any plans described in response to question 1. To the extent that such competitive measures would depend on different potential responses by the Commission to tariff notices filed by Northwestel, be sure to discuss different competitive actions that Northwestel might take. Discuss any assumptions or parameters relied upon.
  3. For each of Scenario #1 and #2 above: discuss the sustainability of the measures Northwestel intends to take as indicated in response to questions 1 and 2 Northwestel’s answer to this question should include at least the following elements:
    1. Northwestel’s proposed price schedule relative to the cost of offering the packages listed in response to questions 1 and 2;
    2. A discussion of measures that Northwestel intends to take to mitigate potential loss of profits with respect to its retail residential terrestrial Internet business line, including efforts to decrease costs by identifying efficiencies; canceling or delaying maintenance or upgrades; or cross-subsidization through revenue from other service offerings;
    3. If prices are to be set below costs for a period of time, projected timelines as to when Northwestel anticipates that its retail residential terrestrial Internet service business line will become profitable again, and how this would be attained.
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