Small P.E.I. internet providers say funding to large companies means uneven playing field

Some smaller internet companies say they are surprised and upset they weren't chosen to get part ofa $36 million government contract to improve service in rural areas of P.E.I.

Last week, the provincial government announced it had chosen Xplornetand Bell to do the workfrom 10 proposals.

"We were very surprised," said Wicked Eh?'schief information officer Robert Nelson, adding staff therefound out the company's proposal wasn't successful justmomentsbefore the government announcement.

"We felt that ourproposal exceeded all the expectations built into the RFP, and that we would be able to provide beyond the CRTC's expected recommendations by the end of the three-year time frame," he said.

'I was upset'

Chris MacFarlanewith Red Sands Internet says hiscompany teamed up with others to submit a proposal.

He said he alsoreceivedan email from the province half an hour before last Friday'sannouncement, informing him Red Sandshad not been selected.

"I was upsetbut not totally shocked, with the way things have gone in the past," MacFarlanesaid.

"It just means that I'm paying with my own money to compete against these guys that are getting some funding."

'Hard struggle'

The CRTC benchmark isspeeds of50 megabits persecond for downloadand 10 megabits a second for upload by the end of 2021.

Nelson saidWicked Eh? is still confident it will meet those benchmarks in its current coverage areas of Kings and Queens counties, but without getting a share of the government project moneyhe saidit will be tougher to expand.

"I think any field where your direct competition is given tens of millions of dollars, it's going to be a hard struggle," he said.

Funding still available for smaller companies

Bell and Xplornet were chosen because of their technical abilitiesand because together they are contributing more than $37 million in the project, saidJoe Rowledge, internet project lead with the provincial government.

He saidsmaller companies that weren't chosen are still eligible to apply for $10 million in provincial grantsover the next five years on work that will improve internet service on the Island.

Some of those grants could go to smaller companies to fill ingaps in service, said Rowledge.

"Are there areas that we're not serving a particular need or niche market?" he asked.

"We're definitely listening to the small provider to find out how we can encourage and maintain their presence here on the Island."

The province is still working out the details of how that money will be awarded.

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