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Bell expands data services to northern Ontario - Bell Canada
Computer Dealer News
-
November 2, 1998
New opportunities may open up for resellers in northwestern Ontario as Bell Canada, in a partnership with Industry Canada/FedNor, steps up the provisioning of high-speed data services in the area.
Bell is expanding its high-speed data services platform to include new communities in northwestern Ontario. The plans are a continuation of a 16-community pilot project that began in February. According to Bell, the platform will give businesses in the area the opportunity to use applications such as telehealth, distance learning, advanced data networking, and voice and fax communications over IP. A total of 56 communities are expected to have the services by December.
For resellers, this could mean new business, according to a representative from the government agency, FedNor. "Now that the Internet is more available (to these communities), and data services are available to business at an affordable rate, people are going to need to buy equipment," explains Carl Seibel, telecommunications officer at Industry Canada/FedNor in Thunder Bay, Ont.
According to Caren Naismith, a Thunder Bay, Ont.-based regional manager of Bell Canada's customer service centre for northwestern Ontario, prior to the service customers in the area could only link up through a costly narrowband voice connection.
With the digital service, connections are faster and of a higher quality, even though the prices are still steep, says Seibel. "A minimum 56K connection is about $500 a month," he says. "Before you had someone in Pickle Lake, which is about 500 km from Thunder Bay, connecting to Thunder Bay, and their analog line would be 19Kbps. That cost them about $1,500 to $2,000 a month."
It was the high cost of these connections, as well as a growing need for quality Internet service, that prompted rural northwestern Ontario communities to rally for a modern telecom network. Through the Northwestern Ontario Telecommunications Committee, the communities approached Bell to get these services, says Seibel. He adds that Bell wasn't entirely sold on providing services initially, since it costs Bell about $50,000 per community to install the high-speed data service. Bell had to be convinced there was enough business to justify the investment.
Bell agreed to install a pilot service if the communities paid half the bill. The committee lined up money from Human Resources Development Canada, as well as FedNor, who contributed $362,500.
Seibel says Bell will report to FedNor how much business it has signed up in the first six months after the service goes into place. "If they have signed up no business, we pay the whole shot, the $50,000 per community," says Seibel. "If they've signed up $25,000 or more, we pay nothing. It's clearly to close the gap in the business case."
Bell
* Expanding its high-speed data services platform in northwestern Ontario
* Has completed a $200 million program to convert all switching equipment to digital service
COPYRIGHT 1998 Plesman Publications
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