Bell Canada has pulled the plug on a $32 million high-speed internet and cell network expansion in Labrador, leaving thousands of residents without promised service. Instead of following through on its commitment to improve connectivity in remote Canadian communities, the telecom giant is shifting its investment southward, pouring money into the United States.
The cancellation came as a shock to local officials. The Nunatsiavut Government, which represents Inuit communities in Labrador, called the decision devastating. The project was supposed to bring high-speed internet to over 1,000 homes, including the Innu community of Natuashish. Bell initially estimated the cost at $22 million, but later revised it to $110 million, citing rising expenses and declining subscriptions in the region.
The timing of this move raises serious questions. Bell’s withdrawal from the Labrador project coincides with its aggressive push into the US market. The company has confirmed plans to acquire Ziply Fiber, an American internet provider, in a deal expected to close later this year. Bell claims this acquisition will make it the third-largest fiber internet provider in North America, solidifying its presence in the US while scaling back investments in Canada.
Bell’s decision is part of a larger trend. The company has been cutting capital expenditures, slashing jobs, and reducing fiber deployment across Canada. Executives blame regulatory policies, particularly the CRTC’s wholesale network access rules, which require major telecoms to provide smaller competitors with access to their infrastructure. Bell has launched a nationwide campaign to pressure regulators into rolling back these rules, arguing that they discourage investment.
Sources:
https://thedeepdive.ca/bell-axes-labrador-internet-expansion-plans-us-investment
https://www.cbc.ca/news/canada/newfoundland-labrador/internet-north-coast-1.6938391
