Liberal Millionaires Club

By Stephen Pate
NJN News, December 31, 2008
with Guardian story Nov 13, 2008

The Guardian in November 2008 reported that Premier Robert Ghiz has given both the lucrative rural Internet franchise and it’s telecom business for the next five years worth $40 million. Rural P.E.I. will get to surf Internet The Guardian 12:15 AM on 13/11/08.

Without more than an unsolicited proposal Rural Development Minister Alan Campbell ladled out the patronage spending to Aliant.

Rural residents of PEI will be getting hi-speed internet service but is it the best service at the best cost?

The Province of PEI has a Public Purchasing Act and Regulations that require all purchases of goods and services over $5,000 to be publicly advertised and tendered. Perhaps the rookie Minister forgot to check with Treasurer Wes Sheridan.

The Guardian reported “Opposition Innovation critic Mike Currie said the deal was cooked up in the backroom of the premier’s office. He questions why the contract was handed to Aliant without a request for proposal from other Internet providers, namely EastLink, Rogers and P.E.I.-based Ruranet. “How would you know if we are getting the best deal?’’ asked Currie. “There was no competition.’’ “

This story is another example in print of how PEI wastes almost $200 million a year by not tendering its business in an open and forthright manner.

Like the Conservatives before them, the Ghiz Liberals assume the public purse is their own personal bank account, to use as they see fit. The law is a nuisance.

Rural P.E.I. will get to surf Internet

WAYNE THIBODEAU
The GuardianAliant is investing $8.2 million to connect rural Prince Edward Island to the World Wide Web, Premier Robert Ghiz announced Wednesday.

In the last provincial election, Ghiz promised to provide rural broadband services to all of Prince Edward Island.

The province set aside $5 million to make that happen.

But the money won’t be needed.

Aliant says it will deliver on Ghiz’s promise without taxpayers’ money.

Internet services will be available to all Islanders by the end of next year. Ghiz described the deal as too good to be true.

“Aliant knows that as Prince Edward Island grows, they grow as well,’’ Ghiz said, during the announcement.

Aliant doesn’t walk away from the deal empty-handed. It gets a five-year extension in its contract to provide local and long distance telephone services for the province.

The telecommunications giant agreed to provide a discount to the province on that contract, to the tune of $2.5 million. The overall contract is worth nearly $12 million.

Rogers will maintain its contract for cellular services with the province.

Both Aliant and the provincial government have also agreed to establish a $1- million Joint Innovation Fund to promote and develop Internet-based applications and uses for Island businesses.

Opposition Innovation critic Mike Currie said the deal was cooked up in the backroom of the premier’s office.

He questions why the contract was handed to Aliant without a request for proposal from other Internet providers, namely EastLink, Rogers and P.E.I.-based Ruranet.
“How would you know if we are getting the best deal?’’ asked Currie.

“There was no competition.’’

Allan Campbell, minister responsible for Rural Development, said the announcement fulfils one of the government’s major commitments made during the last election campaign. He said what makes the deal so much sweeter is it comes with no cost to taxpayers.

“This new service will be of major benefit to individuals and businesses throughout rural Prince Edward Island, and will enable them to become more competitive through the use of new technologies,’’ he said.

Bruce Howatt, vice-president Prince Edward Island, Aliant, said with 350 employees in 56 communities across the Island, the investment made sense for his company. He said it’s all about partnerships.

“They have seen their way fit to extend the telecommunications agreement with us, so that’s their part of the partnership,’’ said Howatt.

“Our part of the partnership is to invest the $8.2 million in network infrastructure to provide broadband to all communities across Prince Edward Island.’’

Howatt said the expansion would have happened anyway, but it would have taken another five years.

“This dramatically accelerates the plan.’’

It is estimated that over 25 per cent of Islanders and rural businesses do not have access to high-speed internet. The new service will be provided to rural Islanders at the same price as urban customers.

“This new service will help stimulate rural businesses and improve the quality of life for people living in rural communities,’’ added Campbell. “At the core of this strategy is that rural Islanders, like their urban counterparts, have the opportunity to receive the same level of services at a fair price.’’

Guardian reader comments

Abridged

Don’t believe the Hype from PE writes: To Mike Currie: You have so much stuff worth critizing, keep your mouth shut on this one. Obviously Aliant is the way to go. Eastlink delivers by cable. There are places only 20 minutes outside Ch’town that don’t have cable. Aliant has phone lines all over the Island. And they are giving a discount of $2.5 mil on the service to the province. Plus they employ over 300 islanders according to this story.

Roger’s should not even get to keep the cell contract. Their coverage is horrible. Sure they are improving, but at the same time, rumor is Child & Family workers had to go back to aliant cells for their emergency duty. What does that say. I have spoken to very few Roger’s customers who have been happy with their service.

Ruranet is just too small. They do not have the financial means for this. Aliant is expanding the service on their dime. Do you think this company could do this. At least with one of the bigger companies there was a chance that the money put aside by the government would not have to be used for this. And now, that is exactly what is happening.
Charlie o from pe writes: I agree with Premier deal to good to be true. We are dealing with a corporation that has to satisfy shareholders and they just don`t make bad deals.

Where do they get their payback if other Internet companies can compete?Thanks.
Nat from PE writes: It would be nice if it could be someone other than Aliant, since they’re the slowest provider on the Island.
Confused Islander from pei writes: I dont understand this????
Is it highspeed????What about us who are in the country who can only have dial up right now???? Does that mean we are getting high speed???? What if we can’t offord The Price for Highspeed??? I dont understand the article, can someone explain it please

Hype Hater from PEI writes: Man I am sick of listening to you on everything. Currie has a point, perhaps a little competition would be good for business, he is, after all, elected to speak up for the good of Islanders. Rogers provides great service. I have been a customer for four years and have no complaints.

Fiber Optic from PE, PE writes: Not cost the Gov anything. Remember that really expensive fiber line (Approx 20 million) that the Gov put in last year, that went from tip to tip. What line do you thing Aliant is using to deliever high speed? They wouldn’t put out there own capital to put the line in, but once Gov did they pounced all over that.

Dazed and Confused from PE writes: A couple of points to make : 1. Why would Aliant discount their service by 2.5 Million dollars and invest 8.2 Million into their infrastructure when for years they said it was too expensive to expand into Rural PEI. It doesn’t make sense given the information that was made public. To comment on the previous post, you need alot more infrastructure in place besides a phone line to deliver dsl. DSL only operates within 3-4 km range from their head end equipment, that is how things get costly.

AS for EastLink, they can go deeper into communities with Fiberoptics then break out into nodes which hang right on the pole.. then from there, spider cable to all households.. It could be complete within a 6 month period. Cable has tremendous bandwidth capabilities (HI-DEF, Internet, Phone, etc.)

Having said this, Aliant does employ alot of islanders and they support alot of events here..They still should have tendered the project and disclosed all the details.. seems like something is missing..

wondering about it from pei writes: Its wonderful that high speed is coming to all parts of the Island. It will allow everyone to participate in business no matter where they are located and create new opportunities that in the past had to be carried out where high speed was available. Its long overdue.

But aside from the good that will come from the service there is always an ugly side. IT IS ALWAYS A MISTAKE TO ENTER INTO ANY LONG TERM TECHNOLOGY CONTRACT WITHOUT A COMPETITIVE BIDDING PROCESS. The shambles and cost of the large health systems on PEI that were essentially all awarded without any bidding are prime example.

A case study should be done covering the misadventures of the development of health technology on PEI. It would make a perfect course for a Computer Science course at any University of what the results of selection of vendors for reasons not related to a competitive process produces.

I notice Wes Sheridan has started asking some questions about why these massive cost overruns in technology applications are occuring. Keep it up Wes and when you dig deeper you are going to be shocked out of your boots when you see how much has been awarded without any competition.

It might seem like a good deal on the surface trading off the providing of rural high speed infrastructure in exchange for a continued monopoly for Aliant to provide telephone services for the Provinces. But I am sure if the costs that are thrown about to come up with a figure of $8.2 million are put to scrutiny you will find out they are the figment of some creative accountants imagination.

Mr. Premier don’t get sucked in by the seducing and soothing words of the three piece suit crowd, PUT THINGS THROUGH A COMPETITIVE PROCESS.

IT Guy from pe writes: ADSL is 2-3 KM
G.shdsl can operate at 6Km. Been there. done that.

Scott from PEI writes: I live beyond the boundaries of ‘wired’ internet services. I am in rural PEI. Recently I have been made aware of a wireless option from Bell, WiMax. WiMax, I think, works off of a modified Cell Tower. It is Dandy. I do believe Bell owns or is affiliated with Aliant. If they expanded the coverage of this service even, rural PEI would be pleased. Aliant is the obvious choice.

ISN’s Wireless – Ruranet is too costly for install and equipment. They plan to make their services more available but that seems to be the extend of their actual planning.

Roger’s shows no real interest as they have not made any great strides to improve the services they currently offer now. Although, I am told that they have partnered with Bell and a few other companies with regards to the WiMax.

Satellite services are available from a few companies. Xplornet is one of them, they have excellent customer service and a great installers. The price is high with equipment, install and monthly rates. With any satellite provider there is also a ‘Fairness of Access Policy’ which is too vague.

Again, Aliant is the obvious choice. Excellent work on the part of Aliant and PEI Government. I believe a good choice was made. Now let’s Git’r Done !!

me me from ricmond, pei writes: I hope that the aliant service gives an alternative to route 2 as I have already used that service and had to fight tooth and nail to get out of a 1 year contract as the service was always down and the employees didn’t do anything about it, and we rude.

Fiber Optic from PE, PE writes: Eastlink already had a fiber optic network in place before the Government added the new line. It was built mainly for the Department of Education and went from tip to tip.

Fiber Optic from PE, PE writes: IT Guy. Sorry I forgot a period. 2.0 Million, but take a look at this old story by the CBC

sounds to good to be true from pe writes: I’m not sure this will be as great as it sounds. I have rural phone service now with aliant – and my house has underground wires running into it……i can barely hear on my phone when it rains. Aliant has tried to fix the problem to no avail…so i have doubts that high speed will run over those same lines. Be nice if it were true …love to get rid of CRAWL up

is it HIGH SPEED or DIAL UP?? from pe writes: It doesn’t say if it is for dial up or high speed – dial up is nothing to get excited about, beleive me – high speed, that would be different but it isn’t clear from this article which it is.

TA from pei writes: Can anything be accomplished in this province without people complaining or politicizing it? I’m looking forward to being able to get high speed and I really don’t care who the provider is. I care about service and quality. Hopefully this will accompany our high speed connections.

LMAO at all these wise people from west, pei writes: No wonder pei is so far behind the rest of the provinces. Everytime someone tries to make improvements there are all these wise know it alls that pop out of the ditches alleys or wherever they come from with all these better ideas and displaying a wealth of knowledge and facts that god knows where they get it from. Lets face it Aliant is the wisest choice and that is all thats to it way to go Premier Ghiz. It’s nice to see a politician that follows through on their promises!!!

Trish from PEI writes: Well as a current Aliant customer who moved from the city (and high speed) three years ago to the country (and dial up) I am beyond excited! I put in a request every six months or so for high speed. With all my services bundled together I find cost pretty good and my cell service great compared to my friends on Rogers and Telus. The article does indicate near the end that 25% of Islanders are currently without high speed and that this service will be offered at the same price as to urban customers. So Yea!

Lance of Wood Islands from PEI writes: My 1.5cents is this: How does this deal compare to the deal Nova Scotia did? As I understand it, they mandate all of the province to have high speed by the end of 2009. Yes, even Cape Breton. Aliant is a big part of that although not all of that plan. The trouble with Aliant is the fees just go up and up. Summer neighbors saw their winter fees go from $5 to $13 for winter off when Aliant took over. Previously, the neighbors had a dial tone for emergency calls during the winter. The phone is dead now at the higher rate. Aliant says the monthly charge for DSL will be the same as the urban areas. But what is that? And did the Ghiz govt. determine what the increases would be? And if the Ghiz govt. had 5 million to spend on high speed, why didn’t they go to Ruranet and say can you connect the rest of PEI with this money? I am afraid this deal will end up taking Ruranet out of the mix.
Yes, this deal needs more sunshine. It is looking like the can/ no bottle deal with Pepsi/Coke.

Chuck Stevenson from Plymouth/Brackley Beach, MA/PEI writes: First off I think competition is a good thing in any industry. We the consumer have choices based on service, cost, and service. I am a very satisfied customer of Rurnet/ISN and have been for 2 years and have followed this story very closely. There are a couple of subtleties to the way the joint announcement is worded that I think will have a bearing on what this announcement really means given the fact that there are almost no details available at this time. To me the key points are:

#1 – The joint announcement focuses on the term ‘broadband’ instead of high speed. Wikipedia defines ‘Broadband’ as: ‘high data rate Internet access—typically contrasted with dial-up access over a modem.’ and ‘Wireless Internet Service Provider (WISPs) are rapidly becoming a popular broadband option for rural areas’

#2 – The following statement within the announcement stands out to me: ‘25 percent of Islanders and rural businesses do not have access to high speed internet’

Is it possible that Aliant is looking to bring ‘Broadband’ only to those areas of the Island not already covered by existing providers such as ISN/Rurnet and Rt 2 and/or providing a combination of wireless and wired options to cover the Province?

It is obvious more details need to be delivered.

old doll from pei writes: My experience has been Eastlink is cheaper, rarely ever has a problem, and has the most courteous service people in the world. I used Aliant and took their slow, expensive service, and months and months of speaking with personnel that were disrespectful, arrogant, and in a hurry to get off the phone. One guy even burped into the phone and didn’t excuse himself. Another guy actually asked me How old are you anyway? That was the day I called Eastlink, and I haven’t had a complaint in 2 years. Just to give all of my rural friends a heads-up…

Make Sense from PE writes: Why all the talk and complaining. At the end of the day PEI gets high speed islandwide and at no cost to tax payers. Who are you morons comparing speeds of different companies, prices etc….? No one was willing to poney up the money to put the infastructure in place except Aliant. Saying that there should be competition is like moving from Toronto to Montague and complaining there is only one shopping mall and it doesn’t even have a Bannah Republic. If you think this is a bad deal you can go Ctrl-Alt-Del yourself.

JP from PE writes: Sounds like a pretty good deal. Almost too good.

RuralGuy from PEI writes: If Aliant was going to provide high speed to every Islander by phone line. It would put them in the hole. I figure they are going to use the cell towers to provide the sevice and they will sell the Wimax. If you can get cell coverage at your house you will be able to get Wireless internet(Wimax). Signal will very of course.

Rogers has the same system as bell, which is better price.

Now as far as eastlink goes, they had there chance they have more wire run around this island then you think, they just don’t want to waste there time hooking up One customer out in the sticks even if the cable goes right by thier house. Wish they did pick up there socks cause for your speed to dollars they are the best priced.

Now as far as Ruranet goes i give them all the credit for getting as many people hooked up without gov money, but there customer service is very poor, needs to improve 100%. The are in an office within an office with you can’t even talk to the person directly.

As for Cost p/mth Ruranet, Bell, Rogers are pretty close around the 50/mth. And hook up cost Ruranet is a bit more but that is because you have a person come to your home. Bell/Rogers Modem is $99

Slow Speed No Speed from route 7, PEI writes: Trish from PEI has got it right, we called every six months or so to see when we were going to get high speed. I’m happy to see it coming our way and I don’t really give a sweet …. who is providing it. Its long overdue..

Billy from PEI writes: Is the high speed going to be for every Islander? If you are the only person living on a road would you still be able to get the service. There are lots of homes all by themselves on the island.

Anti-Aliant from PE writes: Aliant did this to before the goverment could do a RFP, because they charge to much. Aliant lost the federal phone line contract on PEI, after they it for over 50 years.

Patrick from PEI writes: Okay… NOBODY has made this clear yet: All the articles about this say that the expansion will be complete by 2009 …
DOES THIS MEAN BY THE BEGINNING OR THE END OF 2009?!??!?!?! I’m freaking impatient!!!!! I’ve been waiting 9 years!!!!!!!!!