Telus ordered to pay $6,000 to each Kamloops-area customer who lost their landline

Dozens of Telus customers north of Kamloops are losing their landlines and with no cell towers in the works, they’ll likely be forced to set up Starlink connections to have phone service.

The federal telecommunications regulator ordered Telus to pay those customers nearly $6,000 to make up for the increase in cost.

Telus said the technology currently used for 65 homes and businesses in the Tranquille Valley and Red Lake areas, along with Greenstone Mountain, is outdated and obsolete. The company then opted to cut the service due to costs.

It initially offered customers a $1,400 compensation last spring because of the service cuts, but the Canadian Radio-television and Telecommunications Commission ordered that be increased by $4,428 because of the higher costs through Starlink.

It’s expected to cover three years under the new service.

Starlink, a satellite-provided internet service, is owned by Elon Musk’s SpaceX and would still require an extra monthly payment to Telus to offer telephone service.

It comes as Canadian telephone companies switch to a 5G system and phase out older connections, leaving the outdated systems to be decommissioned. It opted not to expand those upgrades to the rural areas at issue.

Thompson Nicola Regional District director Michael Grenier lobbied for Telus to install cellular towers in the region, but the company refused saying it’s too costly.

The regulator noted there are obligations in place for telecommunication companies to provide services for Canadians, but allowed an exception for Telus in a few cases due to the outdated equipment and difficult access.

Grenier said the mountainous rural communities are particularly at risk for wildfires and would rely on internet and cellular connections to get crucial emergency information if one occurred,.

He said Starlink’s service is also at least five times more expensive than the existing connections.

The lobbying was unsuccessful and the regulator allowed Telus to go ahead with the service cuts to the rural areas near Kamloops, along with others near Alexis Creek in the Central Interior and Tahsis on Vancouver Island.

The regulator did note, however, Telus may consider applying for federal funds to expand cellular service in the region, but it’s not clear how far in the future that would be.