MANITOULIN—It appears as though telephone, Internet and cable service costs to customers in Ontario could be increasing significantly if Ontario Hydro has its way, says Algoma-Manitoulin MPP Michael Mantha.
“Basically, because of the Hydro One privatized system in Ontario it is being proposed that all customers in Ontario will end up seeing a large increase in our fees for telephone, Internet and cable,” said Mr. Mantha. The Ontario Energy Board (OEB) wants to increase those fees due to requests made from hydro companies like Hydro One. He explained the wires attached to hydro poles not only provide electricity but they deliver phone, Internet and cable service, and this is where the request has been made by hydro companies like Hydro One to the OEB to increase those fees.
Mr. Mantha explained, “as I understand it the new Hydro One privatized company has applied for an increase in fees.”
“It is going to mean yours and everyone else’s Internet, cable and phone costs are going to go up because the increase will be passed on to the service providers and in turn customers. It is unacceptable,” stated Mr. Mantha.
Fifteen Internet and cable providers across the province, including Shaw, Rogers and Eastlink, have formed the Ontario Broadband Coalition (OBC) to fight the increase.
If the hydro pole rate hike goes through these companies will be forced to pass the cost on to their customers, according to what coalition spokesperson Jay Thomson told CBC News on March 15. He explained the actual pole rate is different for every hydro company and provider, but on average is $22.35 per pole per year.
The OEB regulates these rates. Mr. Thomson says the OEB wants to create a flat rate across the province of $53, which would be a 133 percent increase to the providers who pay the fee. He also said the move will hamper efforts to expand broadband Internet into rural and remote communities.
Eastlink has indicated in a statement that a 133 percent proposed increase would have a direct impact on Internet rates and Eastlink’s ability to continue investing in delivering high speed Internet to more underserviced areas in Ontario.
The OBC is looking for public input before the OEB makes its decision on the rates this spring.
The Ontario Energy Board told CBC News it is currently reviewing all the comments provided by stakeholders, including electricity distributors, ratepayer associations, telecommunication and cable carriers, and municipalities, and will issue a final report of the Board in due course.
Mr. Mantha said, “I will be meeting with representatives of Eastlink and other service companies next week. They have told me their costs are going up 120 percent,” stated Mr. Mantha. “Their average cost to attach to a pole is $13-18 per year per hydro pole. With the application through the OEB Hydro One is looking for an average province wide increase to $53, per hydro pole per year to attach to. And, of course, these costs are going to have to be passed on to the customers.”
