Bell Canada (TSX: BCE) has scrapped a $32 million contract to expand high-speed internet on Labrador’s north coast and will instead invest in US telecommunications through American provider Ziply Fiber.
The company said the Labrador North Wireless Broadband Project’s cost had climbed from an estimated $22 million to $110 million, while regional subscriptions dropped 69%. The acquisition of Ziply is expected to close by year’s end.
Also read: BCE Acquires Ziply Fiber For $5.0 Billion, Pauses Dividend Growth
Nunatsiavut President Johannes Lampe called the cancellation devastating in a statement released on May 6. “Access to reliable high-speed telecommunications is not a luxury; it is a necessity for our communities,” he said.
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Announced in 2022, the federally supported project aimed to connect over 1,000 homes in remote Labrador communities, including the Innu community of Natuashish.
The decision comes a few days before Bell launched its campaign against the CRTC’s wholesale network access rules. The nationwide publicity campaign, called “Build. Connect. Grow Canada,” aims to pressure the regulator to roll back rules requiring major telecoms to provide wholesale network access to smaller competitors.
Also read: BCE Slashes Dividend by 56% in Q1 2025, Announces Deal To Expand Into US
Bell says it has invested nearly $23 billion in its fiber network since 2020, but has cut capital expenditure, axed jobs, and reduced fiber deployment in recent months. The company has explicitly blamed CRTC regulations for these decisions.
“Bell internet sucks,” Torngat Mountains MHA Lela Evans told APTN News, noting students cannot attend online classes because speeds don’t meet minimum requirements. Evans said Bell has shown a pattern of refusing to invest in northern Labrador while quickly expanding services to southern communities.
From earlier: Bell Canada Made $64 Million from Ontario Jail Calls, Lawsuit Reveals
Despite a 2.4% revenue drop, Bell parent company BCE recently awarded executives over $5 million after announcing 4,800 layoffs.
The Nunatsiavut Government says it’s pursuing alternative solutions while provincial officials have begun discussions with the federal government about possible replacements.
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