Bell withdraws from deal to bring high-speed internet to northern Labrador

Bell has pulled out of a deal to bring high-speed internet to northern Labrador.

In a post on its website, the Nunatsiavut Government confirmed that the carrier has withdrawn from the Labrador North Wireless Broadband Project, which was first announced in March 2022 and set to bring high-speed internet to more than 1,000 households in Nain, Natuashish, Hopedale, Makkovik, Postville and Rigolet. Originally, the provincial and federal governments confirmed a $22 million investment into the project, with an additional $10 million in funding allocated the following year.

However, Nunatsiavut Government says it was informed by Bell that costs have ballooned by 340 per cent over the past four years. According to Bell, it would now cost an estimated $110 million to complete the project — all while its subscribers in the region have dropped by 69 per cent. In a separate statement to CBC News, Bell added that there are “significant logistical hurdles presented by the challenging geography” in the region.

In its own statement, the Nunatsiavut Government president Johannes Lampe noted that Bell’s withdrawal from the deal is “devastating” to locals in the region, including the Labrador Inuit communities and Mushuau Innu First Nation community of Natuashish. “Access to reliable high-speed telecommunications is not a luxury; it is a necessity for our communities,” he said.

Bell told CBC News it “will ensure the conclusion of all ongoing project work and facilitate the transition in accordance with the agreement’s terms.” Meanwhile, the Nunatsiavut Government says it’s now looking into “alternative solutions and new partnerships to continue advancing broadband and telecommunications services in the region.”

Source: Nunatsiavut Government, CBC News