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Telecom Order CRTC 2024-85

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Reference: 2021-262

Ottawa, 26 April 2024

Public record: 1011-NOC2019-0372

Broadband Fund – Change request – ATG Arrow Technology Group Limited Partnership’s access project in Alberta (Goodfish Lake) – April 2024

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 ATG Arrow Technology Group Limited Partnership’s request for additional funding due to inflation and a general increase in costs from 2020.

Background

  1. In Telecom Decision 2021-262, the Commission approved ATG Arrow Technology Group Limited Partnership’s (Arrow) funding application to improve the broadband Internet access services available to eligible areas in the community of Goodfish Lake, Alberta. The Commission later received written acceptance of this funding award from Arrow and approved Arrow’s related statement of work in Telecom Order 2022-94, subject to the conditions of funding set out in Telecom Decision 2021-251.
  2. Among the conditions of funding is the requirement, set out at paragraph 32 of Telecom Decision 2021-251, that any changes that materially affect the project to be delivered be approved by the Commission. A change in the proposed financing of a project or a major change in the cost of a project qualifies as a material change based on the Commission’s definition in the Application Guide, which is appended to Telecom Notice of Consultation 2019-372. That notice initiated the second call for applications and led to Telecom Decision 2021-262 and other decisions introduced in Telecom Decision 2021-251.
  3. In Telecom Order 2024-20, the Commission approved Arrow’s change request for its project approved in Telecom Decision 2021-262. In its change request, the company sought approval to delay the completion date of its project by approximately one year. Arrow cited the following delays as the reasons for its request:
    • pandemic-related access restrictions to the community and surrounding area; and
    • extra time required to facilitate negotiations with the affected community.

Change request

  1. On 8 January 2024, Arrow submitted a second change request for its project approved in Telecom Decision 2021-262.
  2. Specifically, Arrow requested additional funding due to inflation and a general increase in costs from 2020, when the original estimates were submitted in the application. Arrow requested an increase of $2,573,203 (35.6%), bringing the funding amount from $7,237,370 to $9,810,573.

Commission’s analysis

  1. The Commission has reviewed the materials submitted, including detailed financial information. The Commission is satisfied, based on analysis of the materials submitted, that the revised costs are reasonable. It considers that approving the change request would satisfy the objectives of Telecom Regulatory Policy 2018-377.
  2. The Commission therefore approves Arrow’s change request for the access project serving the community of Goodfish Lake. All funding conditions and conditions imposed under section 24 of the Telecommunications Act, as set out in Telecom Decision 2021-251, continue to apply. In this respect, it is relevant that the increased costs are due to circumstances Arrow has confirmed were beyond its reasonable control and contemplation.

Secretary General

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