After years of inaction, northern Canada will finally see improved telecommunications services that the rest of us have taken for granted for at least a decade.

Under a plan developed by the Canadian Radio-Television and Telecommunications Commission (CRTC), NorthwesTel (a Bell Canada subsidiary) will spend $233 million by 2017 to improve Internet service and bring other telecommunications services into the 21st century.

At present, many communities still lack phone features like caller ID, call waiting, and three-way calling. Dial up access remains common and landline based broadband from DSL remains spotty. Larger communities like Whitehorse can obtain broadband at speeds up to 100Mbps, however.

The eastern Arctic regions, including Nunavut, rely primarily on satellite broadband while those in the western Arctic can access a mix of DSL and Wireless ISP services in more populated areas and settlements. Cell phone service is available in some areas, but reception doesn’t hold up once customers roam outside of town. Mobile broadband upgrades are anticipated to make 4G home broadband a possibility, although it is likely to be expensive and usage-capped.

NorthwesTel’s operating area

Telecom analyst Iain Grant told the Canadian Press NorthwesTel’s plans to upgrade it services are long overdue. Grant is a proponent of fiber broadband access over satellite and reminded the CRTC a Canadian company called Arctic Fibre is working on a fiber optic route across the Canadian Arctic that will connect China to Europe.

The CRTC has been unimpressed with the Bell Canada subsidiary’s performance, noting the quality of service is well behind the rest of Canada. The Commission has placed a four-year price cap on services and has broken up NorthwesTel’s near-monopoly on service by ordering it sell landline, Internet, and other voice services separately, which opens the door for new competitors to emerge. New entrants could either develop their own networks or resell service purchased wholesale from the phone company.

The CRTC heard numerous complaints from northern residents during hearings held in the region earlier this year. Common complaints included inadequate access to broadband, expensive and outdated telephone service, and no competition in parts of the region. Residents also complained about poor cell service.

One competitor that has specialized in cellular service in northern Canada, Ice Wireless, announced it is spending more than $12 million to upgrade its network in Yukon, the Northwest Territories and Nunavut, introducing mobile data service for the first time.

NorthwesTel serves the Yukon, Northwest Territories, Nunavut and northern parts of British Columbia and Alberta.

[flv]http://www.phillipdampier.com/video/CBC North CRTC issues decision on Northwestel plan 12-18-13.flv[/flv]

CBC North reports northern Canada is well overdue for telecom service upgrades, and Canadian regulators are no longer waiting around for competitors to show up. (1:45)

SaskTel is raising prices … and broadband speeds. (Image: CBC)

Internet access on the prairie is getting more expensive as provincial-owned phone company SaskTel notifies its Saskatchewan customers it is raising certain DSL and fiber broadband prices by $5 a month — a 14% rate hike.

Effective Feb. 1, prices for High Speed Classic DSL and fiber service will rise to at least $39.95 a month. For DSL customers, that means nearly $40 a month for 1.5Mbps service.

SaskTel, a crown corporation, is telling customers it needs the money to upgrade its network and maintain customer support.

The phone company has a bold plan to replace copper wire infrastructure with fiber to the home service in each of Saskatchewan’s nine largest communities: Saskatoon, Regina, Moose Jaw, Weyburn, Estevan, Swift Current, Yorkton, North Battleford, and Prince Albert. The fiber network, dubbed infiNET, is already operational in parts of Moose Jaw and will be introduced in Prince Albert this spring.

SaskTel has a range of price points for its fiber network ranging from $39.95 a month for 2/1Mbps service to 260/30Mbps service for $139.95 a month.

[flv]http://www.phillipdampier.com/video/SaskTel – Building the future with infiNET 5-30-13.mp4[/flv]

Sasktel’s $800 million fiber to the home project is Canada’s most ambitious, because it will blanker urban, suburban, and near-rural customers. This video explores innovations Sasktel is finding to deal with Saskatchewan’s harsh climate, including fiber cables that stay flexible at -40 degrees and directional boring to quickly and inexpensively install underground fiber to homes. (3:28)

Some Rogers Cable customers are being notified the cable company is slimming down their analog television lineup, requiring customers to get a digital adapter to continue watching networks in their new digital format.

We’re enhancing our cable TV network to deliver on our commitment to provide you with quality in television viewing, programming and entertainment content. The Rogers Cable Network Enhancement initiative involves upgrading current analog channels to digital channels in order to provide a superior TV experience on our Rogers cable TV network.

To maintain your cable service, you may need to install a digital adapter.

Rogers says the change is designed to improve the video and sound quality of cable channels, but in reality most cable operators are shifting away from analog television to free up bandwidth that can be repurposed for more HD television channels or faster broadband service.

“The Digital Adapter is being provided to you free of charge, you will not be charged for the digital adapter or incur any service fees associated with the hardware,” says Rogers. “The Digital Adapter is being provided to you to use while you subscribe to Rogers cable television services and remains our property. The Digital Adapter must be returned to us upon termination of your Rogers cable television service.”

However, do-it-yourself types who spliced Rogers’ cable wiring themselves to add additional cable TV outlets in the home will discover “a catch.” These extra, informal cable outlets are allowed by Rogers, but the cable company will not supply digital adapters for televisions attached to them unless the subscriber formally signs up for Rogers’ “extra outlets” add-on. That does not come cheap. Rogers charges $6.99 per month for up to four extra televisions. If customers don’t sign up, those televisions without digital adapters will lose more than a dozen analog TV channels during the first wave of digital conversion. If a customer has more than four televisions hooked up to Rogers Cable, there may be more fees.

The channels Rogers is converting to digital were not selected to minimize viewer disruptions.

While The Shopping Channel secures a safe new analog channel number in St. John’s, N.B., Turner Classic Movies gets hit with a digital switch. Little watched APTN – The Aboriginal People’s Television Network survives on analog, AMC and CNN do not in Moncton. Toronto subscribers will lose 19 channels to digital, including MTV, BNN, and The Comedy Network. Two home shopping networks get to stay in analog, however.

Before -and- After

Hopes for increased Canadian wireless competition were dashed last week when Industry Canada released an official list of approved spectrum auction bidders mostly filled with familiar names.

Fifteen Canadian participants including market-dominant Bell, Rogers and Telus each put down a refundable 5% deposit for the Jan. 14 auction. Most of the rest of the bidders are regional providers or suspected spectrum speculators hoping to sell any acquired spectrum at a profit.

It was good news for the three largest cell companies which feared the possibility of a well-funded new entrant like Verizon Wireless. Instead of facing the deep pockets of Verizon, the three cell companies will be competing against regional providers like Quebec’s Vidéotron, Bragg Communications’ EastLink which serves Atlantic Canada, and provincial telephone companies MTS in Manitoba and SaskTel in Saskatchewan.

Two private equity firms are also participating: a subsidiary of Birch Hill Equity Partners and Catalyst Capital which holds the debt for independent Wind Mobile. Wind Mobile’s owner Globalive Communications is also registered as a participant. Both could use the airwaves in the Wind Mobile business or sell them to another provider.

“Ultimately, what would have been great is to have a well-capitalized startup, a feisty competitor coming in,” telecom analyst Troy Crandall told the Canadian Press news agency. “That would have been the best thing for consumers.”

But Canada’s best hope for lower cell phone bills was never to be found from Verizon Wireless.

“I can assure our investors that we never have and never will be leading on price,” Lowell McAdam told investors at a conference last week.