In case it wasn’t obvious that a lot of people aren't happy with the sale of Ontera, then Monday night’s City Council meeting added even more emphasis to that point.
City Council unanimously approved a motion moved by deputy mayor Tanya Vrebosch on Monday night, which will see the City file a complaint with the federal Competition Bureau as well as the Canadian Radio-television and Telecommunication Commission, requesting an investigation into the sale of Ontera.
The motion argues that the sale will create a monopoly of telecommunication services in portions of Northeastern Ontario, therefore having a potential impact on service levels and the cost of those services.
“They talk about the long term sustainability of telecommunications side of the business, but they don’t mention the effects for the consumer or the protection for them,” Vrebosch said, addressing comments made by Minister of Northern Development and Mines Michael Gravelle earlier this week.
“Whether it’s because they’re creating a monopoly, they’ve never shown us the proof that they’ve looked at the competition side of it.”
Speaking in question period at Queen’s Park last week, Gravelle stated that he felt as though the private sector is better off handling the sustainability of the telecommunications side of the business, which will allow the government to focus on the transportation side of things.
The sale of Ontera to Bell Aliant is set to go through in very early August, at which time the company’s workforce is expected to be cut by up to 60 positions over a 24-month time span, including some management positions. Ontera currently employs roughly 120 people.
“Some people say we’re wasting our time, but I don’t think we’re wasting our time at all,” Vrebosch continued. “This is just something we can try to do as a city to try and protect the competition side of the services and try to protect those jobs as best as we can.”
“It’s also us saying ‘no, we don’t agree with the sale,’ which we’ve said loud and clear and we have to make sure we keep saying that out loud.”
The purchase agreement will see the Ontario Northland Transportation Commission receive an estimated long-term revenue of $10 million. The province and Bell Aliant will also team up on a $30.2 million public-private investment in telecommuncations infrastructure in northeastern Ontario.
As is stated on the Ontario Government website, the sale of Ontera was open and competitive, with oversight by a third-party monitor. Through that competitive process, “Bell Aliant demonstrated they can meet provincial priorities to sustain jobs, deliver telecommunications services, invest in the business in northern Ontario and provide value for taxpayers."
While Vrebosch did acknowledge that North Bay might not be affected by the potentially monopolized services as much as some other communities further north, she said the complaint is North Bay’s way of standing up for the Northern Ontario towns who rely on the sole option of Ontera’s services. The complaint process is expected to begin immediately, with Vrebosch indicating on Twitter that the rough draft of the letter was complete last week.
