Bell pulls out of deal to bring high-speed Internet to northern Labrador

Bell Canada has pulled out of an agreement that would have brought high-speed Internet and cell service to the north coast of Labrador, citing ballooning costs and challenging geography.

"We were pretty shocked, cause we were waiting for this to happen for a long time," John Nui, Mushuau Innu First Nation Chief, told CBC Radio's On the Go.

"They said it wouldn't be viable to have it in our regions."

The agreement, known as the Labrador North Wireless Broadband Project, was first announced in March 2022. It brought a $22-million investment from the federal government at the time for Bell to bring high-speed Internet to more than 1,000 households in Nain, Natuashish, Hopedale, Makkovik, Postville and Rigolet.

A month before the announcement, the federal and provincial governments had announced $116-million of funding was available through the Universal Broadband Fund, with the province making $20-million available.

Costs had grown by August 2023, which prompted the federal government to add an additional $10-million to its investment.

In a news release on Tuesday, the Nunatsiavut Government says it had learned the cost to complete the project had ballooned to $110 million.

"This decision is a significant setback for Labrador Inuit communities, as well as the Mushuau Innu First Nation," David Dicker Jr., minister of finance, human resources and information technology with the Nunatsiavut Government, told CBC Tuesday.

"High-speed telecommunications are not a luxury, but rather, a necessity."

CBC News asked Bell Canada for an interview. In an emailed statement, senior communications manager Geoff Higdon says a cost increase of 340 per cent over four years made the project unviable.

"Due to unsustainable cost increases … and significant logistical hurdles presented by the challenging geography, Bell has made the difficult decision to withdraw from the planned fixed wireless network project," Higdon wrote.

"Bell will ensure the conclusion of all ongoing project work and facilitate the transition in accordance with the agreement's terms."

Nui says there doesn't seem to be a place where negotiations could resume, calling the deal "dead in the water."

It hurts a region where connectivity is sorely needed, he says.

"The cell service would have been very good, you know, because you can reach others when they're out of their homes. Right now, you can only reach us where there is wi-fi, and there [are] a lot of places that we don't, you know, have Internet service," Nui said.

Nui added he hopes the parties involved can find other options to help bring a reliable Internet and cellular connection to northern Labrador in the future.

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