Thank you, Mr. Speaker. I was recently approached by a constituent who had serious concerns about the cost of Internet services in the Northwest Territories. Internet usage, transferring data, is estimated to cost about 3 to 5 cents per gigabyte in the provinces down south. Up north, once you go over your bandwidth cap, NorthwesTel, our main Internet service provider, charges Northerners at least $10 a gigabyte compared to only $2 to $5 per gigabyte down south.
In a recent agreement with wholesalers down south, Bell Canada sells 40 gigabytes of data for $4.25 and still makes a profit. That demonstrates that even in the South the price of Internet usage is very inflated.
True, Internet service may cost more in the North and it’s fair that those who use more should pay more, but at $10 per gigabyte it appears that NorthwesTel is making a 4,000 percent increase over their costs. According to its website, NorthwesTel set its limits “to ensure network reliability and make sure that all high-speed Internet users enjoy a fun, fast and reliable Internet experience.” But does that justify a $10 surcharge for every gigabyte over the limit?
Research estimates that monthly Internet traffic in North America has grown by as much as 50 percent in the last 10 years and that Internet traffic will quadruple between 2009 and 2014. The average Canadian downloads twice as much data as they did two years ago, but their Internet use is offset by increasingly powerful and efficient machines. The Internet continues to offer more and more to users. It is a communication lifeline in our small communities.
There is evidence that our federal regulator, the CRTC, is failing to deliver competitive Internet services in Canada and this problem is only magnified in the North. As the GNWT negotiates a new digital service contract, it should take into account the true cost of service. As private users we should do all we can to seek greater accountability in this area and, as one technology watchdog, the Globe and Mail, put it, make sure that the rates we pay are based on reality.
Thank you, Mrs. Groenewegen. The honourable Member for Kam Lake, Mr. Ramsay.
