Following a process to determine the future use for the Atlantic Cable Facility (ACF), the Honourable Andrew Parsons, KC, Minister of Industry, Energy and Technology, today announced that the department has entered an agreement to assign the Provincial Government’s interests in the ACF to Xplore Inc.
The ACF is a terrestrial and subsea trans-gulf fibre-optic cable between St. John’s and Halifax. The project was announced in 2007 with a $15 million investment from Provincial Government. The initiative resulted in the construction a second fibre-optic link between St. John’s and Halifax, required for redundancy amongst carriers.
Through the agreement with Xplore, the Provincial Government strives to improve broadband access and better utilize the ACF to improve connectivity for rural and remote communities that are underserved. Xplore is currently in the process of expanding its fibre network in the province.
While the ACF has created redundancy among carriers to avoid interruptions in telecommunications services in the event of an outage, the primary purpose for the investment at the time was a longer-term vision for a Provincial Government-owned network. As the Provincial Government did not pursue this, it had no direct use for its interests in the ACF. As part of the original agreement, it was still responsible for approximately $1.5 million in annual maintenance and repair costs since 2019.
Assigning interests in ACF is anticipated to positively impact businesses, communities and residents in rural areas by facilitating access to high-speed broadband. The company will assume all the Provincial Government’s responsibilities for the remainder of the agreement to 2029.
Founded in Woodstock, New Brunswick, Xplore Inc. is a leading provider of Internet services to Canadians in rural communities.
Quotes
“Assigning government’s interests in the ACF to Xplore is anticipated to positively impact economic development of the province as it will assist in Xplore’s expansion in rural Newfoundland and Labrador. It will also ensure that government is ensuring the efficient and effective management of provincial assets.”
Honourable Andrew Parsons, KC
Minister of Industry, Energy and Technology
“At Xplore, we have one focus and one focus only: delivering the fastest and most reliable Internet service to people in rural communities across Canada. We are excited to expand the availability of fibre Internet in rural and remote areas of Newfoundland. Backed by our exceptional 100 per cent Canadian-based customer service, Xplore’s fibre internet service will enable improved access to entertainment, education, health, and economic growth.”
Brent Johnston
CEO, Xplore Inc.
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