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Telecom Order CRTC 2024-285

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Reference: 2022-89

Ottawa, 12 November 2024

Public record: 1011-NOC2019-0372

Broadband Fund – Change request – TELUS Communications Inc.’s mobile project in the central interior of British Columbia

Summary

Canadians need reliable, affordable, and high-quality Internet and cellphone services for every part of their daily lives.

Through its Broadband Fund, the Commission contributes to a broad effort by federal, provincial, and territorial governments to address the gap in connectivity in underserved rural, remote, and Indigenous communities across Canada.

With this order, the Commission approves TELUS Communications Inc.’s request to receive additional funding and to postpone the completion date of its mobile project in British Columbia. Both the additional funding and the revised timeline will support the continued effort to complete this project and ensure connectivity.

Background

  1. In Telecom Regulatory Policy 2016-496, the Commission set out objectives and governing frameworks for the Broadband Fund. In the Application Guide appended to Telecom Notice of Consultation 2019-372, which initiated the second call for Broadband Fund applications, the Commission defined a material change as including a major change in the cost or scope of a project.
  2. TELUS Communications Inc. (TCI) participated in the second call. In Telecom Decision 2022-89, TCI received approval for that application. The approved application supports introducing Long-Term Evolution – Advanced (LTE-A) mobile wireless service to serve the communities Alkali Lake 1 (also known as Esk’et), a community of the Esk’etemc First Nation, and Dog Creek 1 (also known as Dog Creek), a community of the Stswecem’c Xgat’tem First Nation. Both are in British Columbia.
  3. The Commission later received written acceptance of this funding award from TCI and approved TCI’s related statement of work in Telecom Order 2023-272, subject to the conditions of funding set out in Telecom Decision 2022-81. As part of the statement of work approval, the Commission approved a funding increase from $1,609,393 to $2,115,371. Among the conditions of funding is the requirement, set out in paragraph 32 of Telecom Decision 2022-81, that any material changes to the project be approved by the Commission. An application for material changes is known as a change request.

Change request

  1. In the Application Guide appended to Telecom Notice of Consultation 2019-372, the Commission stipulated the Commission’s expectation that projects be completed within three years of the funding award. Telecom Decision 2022-89 was issued on 29 March 2022, creating an expectation that this project be completed by 29 March 2025.
  2. However, on 31 May 2024, TCI submitted a change request for its project approved in Telecom Decision 2022-89.
  3. Specifically, TCI requested additional time to complete the project before the end of fall 2026. TCI stated that additional time is needed due to factors submitted in confidence but relating to delays experienced with site acquisitions.
  4. TCI also requested additional funding due to changes in the economic landscape, including declining wireless prices and increasing interest rates. TCI requested an increase of $525,914 (+24.9%), bringing the funding amount from $2,115,371 to $2,641,285.

Commission’s analysis

  1. The Commission has reviewed the materials submitted and factors described. The Commission underlines the importance of addressing connectivity gaps quickly by completing Broadband Fund projects in a timely manner.Footnote 1 However, the Commission considers that, under the circumstances, approving the change request would satisfy the objectives identified by the approach set out in Telecom Regulatory Policy 2016-496. In this respect, it is relevant that the delay is due to circumstances that TCI has confirmed were beyond its reasonable control and contemplation, and that the materials it provided showed evidence of why the funding increase was required.

Conclusion

  1. The Commission therefore approves TCI’s change request and expects that the project be completed before 21 December 2026. All funding conditions and conditions imposed under section 24 of the Telecommunications Act, as set out in Telecom Decision 2022-81, continue to apply.

Secretary General

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