Why do we require phone in SILEC / Why do we not offer Dry Loop?

Policy:

Nexicom Inc. does not sell standalone Internet access services to customers in our regulated service areas.  Nexicom requires Internet access customers to subscribe to local telephone service as well.

Internet pricing does not include cost to maintain line:

Our retail Internet access monthly rate covers only the cost of the Internet service, and not the cost of the physical line that carries it to your property.  However, even if we were to remove voice service from the line, Nexicom would still incur costs to operate and maintain that physical line regardless of whether that line is copper or fibre.

Dry Loop:

If we were to offer standalone Internet access service, we would have to assess a charge to cover the expense associated with operating and maintaining the physical line.  This is called a dry loop charge.  Nexicom does not have a dry loop tariff and has not applied to the CRTC to offer such a service.  As dry loops are a regulated telecommunication service, we are not permitted to offer them without an approved tariff.

Less costly than Dry Loop:

Nexicom is a small independent local exchange carrier and as such, the costs to serve all customers throughout our serving area are recognized by the CRTC as high cost. The local rate paid by customers for our services is far less than the cost to serve such rural areas. The reason is that the rural areas are widespread and diverse with low customer density (unlike serving downtown Peterborough). Thus, in rural and sparsely populated serving areas such as Nexicom’s, the full cost of offering a dry loop would exceed the current CRTC approved charge for a rural subsidized dry loop line.