The rising cost of space on hydro poles may result in a hike in the cost of internet and cable
The wires attached to hydro poles not only provide electricity, but they deliver phone, internet and cable services.
And the cost of attaching those wires to the poles is on the way up.
The Ontario Energy Board wants to increase those fees after requests from hydro companies like Hydro One.
Fifteen internet and cable providers across the province have formed the Ontario Broadband Coalition 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 coalition spokesperson Jay Thomson.
Thomson explains the actual pole rate is different for every hydro company and provider, but on average is $22.35 per pole per year.
The Ontario Energy Board (OEB) regulates these rates. Thomson says the OEB wants to create a flat rate across the province of $53, which would be a 133 per cent increase to the providers who pay the fee.
Thomson says the move will also hamper efforts to expand broadband internet into rural and remote communities.
"If the costs for connecting the poles increases that means that expenses have to be diverted elsewhere within the company and that means they're going to be diverted away from the most expensive part of their business which is extending service to underserved areas," he says.
Many of these providers have been working to expand internet services into areas of Ontario that don't have high-speed broadband. This work could be jeopardized if companies have higher costs in pole fees, Thomson says.
"In areas just outside of cities, just outside of Sudbury central, and it can be in the most remote parts of the province. It is an issue across Canada to extend broadband services like these to those kind of communities and so everyone outside of major centres is going to be affected."
"Completely unreasonable" Eastlink says
Eastlink, a cable and internet provider in Sudbury and other parts of Ontario, is part of the Ontario Broadband Coalition.
In an emailed statement to CBC news, Eastlink says it has been investing millions into building and expanding communications networks across northern and southern Ontario.
It says as a communications company focused on providing small towns and rural Canada, Eastlink is concerned about the proposed increase to pole rates.
The statement goes on to say that a 133 per cent 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.
Eastlink calls the OEB's pole rate increase "completely unreasonable" and says it should "at a minimum, be limited to the rate of inflation."
Could this mean higher Hydro rates?
Greater Sudbury Hydro is affected on both sides says Wendy Watson, communication director.
She explains they receive payment for pole use, but they also pay to attach wires to Hydro One poles.
Watson adds it's hard to say if the pole rate increase would have an impact on customers' hydro bills in Greater Sudbury.
"Do we need to pay for more attachments than we collect for? It's possible it could be somewhat balanced, but I don't know the number and again the rate formula is a very complex calculation," she says.
"The Ontario Energy Board tells us what we're allowed to do."
Decision coming soon
The Ontario Broadband Coalition is looking for public input before the Ontario Energy Board makes its decision on the rates this spring.
The Ontario Energy Board says 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."
