Northwestel's new higher speed, higher data plans still overpriced, says critic

Businesses and residents in Whitehorse and Yellowknife can now buy faster internet and more data from Northwestel, though one observer says the new plans are still overpriced.

"The amount that Northwestel is overcharging us is egregious," says Andrew Robulack, a telecommunications commentator and blogger in Whitehorse. 

The company is the dominant internet service provider in the North. The new plans are available only to customers in Whitehorse and Yellowknife.

In two new plans announced this week, Northwestel is offering residential users 125 Mbps speed with 400 GB monthly downloads for $189.95 per month. Business users can now opt for 150 Mbps with 500 GB of monthly usage starting at $349.95 per month. Both packages increase the data capacity by more than 30 per cent of the current usage cap. 

Robulack says it's a step in the right direction, but it's not a great deal for Northerners. 

He points to Dawson Creek, in Northern British Columbia, as a comparison. 

"Shaw is charging 123 bucks for 800 GB of data in Dawson Creek. Let's say it would be fair to hit maybe $140 for that same amount of data in Whitehorse. We're a little bit farther north, there's more infrastructure there, so I think we would pay a little bit more."  

But not as much as Northwestel is proposing, he says. 

Northwestel spokesperson Andrew Anderson says "I think everybody can understand, operating in the North is more expensive and operating in a remote area, with a smaller population is also more expensive." 

Anderson says Northwestel spent the summer upgrading its systems to accommodate the demand for faster internet. 

He maintains that the fees are fair and reasonable.

"We've invested over $2 million in grooming our network and going through and ensuring that we can provide, consistently, these high speeds." 

But Robulack says there needs to be more government involvement when it comes to the infrastructure needed for internet in northern Canada. 

"We don't look to private businesses to build roads into the North — that's a public concern. And that's what the internet is," he says.

When the internet goes down, Robulack says it costs businesses and has a direct impact on the northern economy.

He said he hopes news of Northwestel's new internet packages will spark more discussion among the northern candidates running in the federal election.