Local Provider Sparks Outcry: Federal Broadband Rules Under Fire

A local internet provider based in Nova Scotia is sounding the alarm, accusing federal regulations of creating an uneven playing field that stifles smaller businesses and hinders vital rural broadband expansion. Mainland Telecom, a homegrown success story, is voicing its profound frustration over what it describes as a broken system, particularly the structure of the Universal Broadband Fund (UBF).

Gary Jessop, the driving force behind Mainland Telecom, has pulled no punches in his critique of the Canadian Radio-television and Telecommunications Commission (CRTC) and the federal government's approach to internet subsidies.

According to Jessop, the current framework inadvertently favors telecom giants like Bell Canada, forcing smaller, independent providers into an untenable position.

The crux of Mainland Telecom's complaint lies in the rules governing UBF funding. Jessop explains that the regulations often compel smaller providers to 'overbuild' existing infrastructure rather than expanding into truly underserved areas.

This means duplicating lines and equipment in communities that already have basic internet access, while vast swaths of rural Nova Scotia — and indeed, rural Canada — remain without reliable, high-speed connectivity.

Jessop recounted a specific instance in the New Russell area, where his company was poised to bring fiber-optic internet to dozens of homes.

However, a last-minute decision by the CRTC granted Bell Canada a subsidy to provide services there, effectively undercutting Mainland Telecom's efforts and leaving them unable to compete for the same funding. This, he argues, is a clear example of how the system undermines local investment and innovation.

The implications are far-reaching.

Mainland Telecom, like many small regional providers, has been instrumental in bridging the digital divide in areas that larger corporations often overlook due to profitability concerns. By making it harder for these local heroes to secure funding, the federal regulations are inadvertently slowing down the very goal they aim to achieve: universal high-speed internet access across Canada.

The company's CEO believes that the current subsidy model encourages what he calls a 'race to the bottom,' where providers are forced to compete for areas that already have some form of service, rather than focusing on the truly 'unserved.' This not only wastes taxpayer money but also delays crucial infrastructure development for those most in need.

Mainland Telecom is advocating for a more equitable approach to broadband funding, one that prioritizes genuine expansion into unserved territories and fosters a competitive environment where local providers can thrive.

Without significant changes, Jessop warns, the dream of universal high-speed internet for all Canadians, especially those in remote and rural communities, will remain just that — a dream.