Ontera

Ontera is a telecommunications company serving Northern Ontario, Canada. Its operations developed from the telecommunications division of the Ontario Northland Transportation Commission, a provincial Crown agency, and therefore have historically been closely associated with the communications needs of remote and rural communities in Northeastern Ontario. The business originally operated under the Ontario Northland telecommunications identity and was established in 1902. The company has provided a range of communications services over its history, including local and long-distance telephone service, Internet connectivity, DSL, fibre-optic and wireless data services, Voice over Internet Protocol, customer-premises local-area-network systems, and Internet-security solutions. Its infrastructure includes a fibre-optic network extending through much of Northeastern Ontario. The company’s local telephone service has covered the Northern Ontario communities of Bear Island, Iroquois Falls, Marten River, Moosonee, Moose Factory, and Temagami. It has also offered long-distance services across much of the area associated with telephone area code 705. Ontera’s name changed several times as the telecommunications operation evolved. It was known as O.N.Tel Inc. during the 1990s, adopted the trading name O.N.Telcom in 2000, and became Ontera in 2004. A major regulatory turning point occurred in 2000, when the Canadian Radio-television and Telecommunications Commission authorized long-distance competition. Before that decision, Ontera had been the exclusive long-distance provider in a number of rural Northeastern Ontario markets. The business was divested by the Ontario government in 2014. In April of that year, the province announced an agreement to sell Ontera to Bell Aliant, and the transaction was completed in October. Bell Canada subsequently became the direct owner after taking full ownership of Bell Aliant later in 2014. Public Accounts of Ontario materials reported a sale price of C$6.3 million and characterized the transaction as a loss of C$61 million for the province; those figures relate to the provincial divestment and are not current operating or valuation figures for Ontera. After the change in ownership, the company’s operating posture became more limited. The Wikipedia account states that Ontera did not continue investing in network infrastructure after divestment and stopped accepting new customers. This led to concerns in communities that depend on older telecommunications facilities. In September 2020, Temagami’s municipal council approved a resolution urging the telecommunications regulator to require infrastructure upgrades and to permit third-party resellers to use Ontera’s network. Ontera remains a distinct regional telecommunications brand and Bell Canada subsidiary rather than a nationally marketed consumer brand. Its significance lies in its historical role in connecting remote Northern Ontario communities, its legacy fibre and telephone infrastructure, and the transition from a provincially owned telecommunications operation to a privately controlled regional network business.

Ontera traces its origins to 1902, when the Ontario Northland Transportation Commission established a telecommunications division. The commission was a Crown agency of the Government of Ontario, and the telecommunications operation developed to serve the communications requirements of communities and businesses in Northern Ontario, particularly in remote and rural parts of the province. For much of its early modern history, the telecommunications business operated as part of Ontario Northland. It supplied local telephone services in selected communities and held an important position in long-distance communications in Northeastern Ontario. The company was the exclusive provider of long-distance calling services in many rural markets until the Canadian Radio-television and Telecommunications Commission approved long-distance competition in 2000. That regulatory change ended the business’s former exclusive position and placed its services within a more competitive Canadian telecommunications environment. The business adopted a series of names as it was reorganized and repositioned. During the 1990s it was renamed O.N.Tel Inc. In 2000 it began using O.N.Telcom as its trading name, and in 2004 it adopted the Ontera name. These changes reflected the development of the operation from a government-associated railway and regional infrastructure division into a more conventional telecommunications brand. Ontera’s network activities expanded beyond traditional voice calling. The company provided DSL, fibre-optic and wireless data services, as well as VoIP, customer-premises LAN systems, and Internet-security solutions. It owned and operated an extensive fibre-optic telecommunications network across much of Northeastern Ontario. In September 2008, Ontera announced a plan to install a ring network to improve resilience and reliability. The ring network was completed by spring 2009. A decisive ownership change came in 2014. In April, the Ontario government announced that it would sell Ontera to Bell Aliant. The transaction was completed in October. Bell Canada had historically been Bell Aliant’s largest shareholder and, after Bell Canada acquired full ownership of Bell Aliant later in 2014, Ontera became a Bell Canada subsidiary. Ontario Public Accounts materials reported that the sale generated C$6.3 million and represented a C$61 million loss for the provincial government. Those figures describe the divestment transaction rather than an ongoing financial profile for the company. Following divestment, Ontera’s role became more constrained. The company did not maintain the same level of network investment and stopped accepting new customers, according to the available account of its subsequent operations. The condition and availability of its infrastructure became a concern for communities that depended on the network. In September 2020, Temagami’s municipal council approved a resolution asking the CRTC to require upgrades and to allow third-party resellers to use Ontera facilities. Ontera’s historical importance is therefore tied to regional access rather than national scale. It connected isolated Northern Ontario communities, developed and operated telecommunications infrastructure in difficult geographic conditions, and experienced the broader transition from provincially owned utility-style communications services to a privately controlled regional subsidiary. Its current public profile is that of a Bell Canada-owned provider with a legacy network and a continuing association with selected Northern Ontario local telephone and data markets.

• 2020

  Temagami requests regulatory intervention

  [1]Onteraen.wikipedia.org

  Temagami’s municipal council sought required infrastructure upgrades and third-party reseller access through a resolution directed toward the CRTC.

• 2014

  Divestment to Bell Aliant completed

  [1]Onteraen.wikipedia.org

  Ontario completed the sale of Ontera to Bell Aliant in October. Bell Canada later became its ultimate owner through Bell Aliant.

• 2009

  Ring network completed

  [1]Onteraen.wikipedia.org

  The announced ring-network project was completed by spring 2009.

• 2008

  Ring-network project announced

  [1]Onteraen.wikipedia.org

  Ontera announced plans to build a ring network intended to improve network reliability.

• 2004

  Ontera name adopted

  [1]Onteraen.wikipedia.org

  The telecommunications business changed its name from O.N.Telcom to Ontera.

• 2000

  Long-distance competition approved

  [1]Onteraen.wikipedia.org

  The CRTC approved long-distance competition in markets where the business had previously been the exclusive rural provider.

• 1902

  Telecommunications division established

  [1]Onteraen.wikipedia.org

  Ontario Northland established the telecommunications division that later developed into Ontera.

Regional telecommunications operator focused on Northern Ontario communities and business connectivity.

• Telephony

  Local telephone service

  Ontera provides or has provided local telephone service in selected Northern Ontario communities, including Bear Island, Iroquois Falls, Marten River, Moosonee, Moose Factory, and Temagami. This local-service footprint reflects the company’s historic role in connecting communities outside major urban centres.

• Telephony

  Long-distance service

  Long-distance calling was a central part of Ontera’s historical business. It was the exclusive long-distance provider in many rural Northeastern Ontario markets until the CRTC approved competition in 2000. The company has continued to offer long-distance service across much of the area associated with area code 705.

• Internet access

  DSL Internet

  Ontera has offered DSL connectivity as part of its regional Internet portfolio. DSL complemented the company’s telephone infrastructure and helped provide fixed Internet access in communities where fibre deployment was not universally available.

• Data connectivity

  Fibre-optic and wireless data services

  The company operates or has operated fibre-optic and wireless data services supported by a telecommunications network extending through much of Northeastern Ontario. These services serve both community connectivity needs and business data requirements.

• Enterprise telecommunications

  Business network and security services

  Ontera’s business-oriented offerings include customer-premises LAN systems, Voice over Internet Protocol, and Internet-security systems. These services position the company not only as a residential or local telephone provider but also as a regional supplier of managed communications capabilities.

• 2020

  Respond to concerns over network access and upgradesStrategy

  Background

  Temagami officials raised concerns about infrastructure conditions and the availability of network access after Ontera stopped accepting new customers.

  Action taken

  Temagami’s municipal council approved a resolution asking the CRTC to require Ontera to upgrade its infrastructure and permit third-party resellers.

  Aftermath

  The resolution placed local infrastructure and wholesale-access concerns before the federal telecommunications regulator.

  Source

• 2014

  Divestment to Bell AliantM&A

  Background

  The Ontario government decided to sell the provincially owned telecommunications business as part of its divestment of Ontera.

  Action taken

  Ontario sold Ontera to Bell Aliant, with the acquisition completed in October 2014. Bell Canada later obtained full ownership of Bell Aliant and became Ontera’s owner.

  Aftermath

  Ontera became a Bell Canada subsidiary. Public Accounts of Ontario reported a C$6.3 million sale price and a C$61 million loss for the province.

  Sale proceeds and reported provincial loss. C$6.3 million sale proceeds; C$61 million reported loss (2014 divestment)

  Source

• 2008

  Build a telecommunications ring networkStrategy

  Background

  Ontera sought to improve the reliability of its regional infrastructure and announced a ring-network project in September 2008.

  Action taken

  The company installed a ring network across its telecommunications infrastructure, with completion reported by spring 2009.

  Aftermath

  The project was intended to strengthen network reliability, although later infrastructure concerns led local officials to request further upgrades.

  Source

1. 1Onteraen.wikipedia.org