One of the best-known large corporations in the North is being sold.
Northwestel Inc. is being scooped up by Sixty North Unity, “a consortium of Indigenous communities from the Yukon, the Northwest Territories and Nunavut.”
The membership in the consortium has not been outlined.
The purchase was announced Tuesday afternoon. It will include Bell Canada as well in what was described as a “landmark partnership to advance Indigenous self-determination through the Indigenous ownership of critical telecommunications infrastructure in the North.”
“Sixty North Unity intends to acquire Northwestel, the leading telecommunications service provider in the North,” said a statement.
“Following the completion of the transaction, Northwestel will be the largest telecommunications company worldwide with full Indigenous ownership.”
The purchase price for the transaction is up to $1 billion in cash in Canadian currency.
“The Northwestel team is filled with honour and gratitude to serve the North in this more profound way,” said Northwestel president Curtis Shaw.
“This monumental step towards economic reconciliation will see direct benefits stay in northern Indigenous communities. I can’t wait to see what advancements this new partnership will bring to northern Canadians,” Shaw said.
“We’re grateful for the leadership and support we’ve received from Bell Canada over the past 36 years and are excited to embark on this new chapter with Sixty North Unity.”
Northwestel advised The Yukon Star this morning no representative could be made available to further discuss the sale arrangements.
Tiffany Eckert-Maret, a representative of Sixty North Unity in the Yukon, said, “As Indigenous people, we have long believed we are best placed to make the necessary decisions affecting services in our communities. The acquisition of Northwestel will give us the autonomy to make those investments and choices to serve our telecommunications needs into the future.”
In the announcement, the participants stated, “This partnership enables Sixty North Unity to continue to bridge the digital divide and continue to address the regional disparities in accessing high quality telecommunications services.
“With a focus on sustainable development and collaborative partnerships, the acquisition will provide Indigenous communities with greater access to long-term stable cash flows to reinvest in the critical areas of community infrastructure, housing, social services, health, and education programs for those that live and work in the North.”
Luke Pantin from the Yukon Chamber of Commerce told The Yukon Star he was excited by the news.
“The Yukon Chamber of Commerce applauds the transition of Northwestel to Sixty North Unity, led by Indigenous corporations from Yukon, N.W.T., and Nunavut. This significant development marks a milestone in telecommunications ownership in the North, resonating with our goals of economic empowerment and community connectivity,” Pantin said.
“The future of telecommunications in the North is bright and we are confident that the new leadership will bring innovative solutions and improved services to enhance the quality of life and business operations across our territories.”
The Yukon government declined to offer any comment this morning. A cabinet spokesperson said it’s leaving any discussion of the deal to the participants.
Sixty North Unity is planning significant capital investment to drive digital growth and enhance connectivity across the North to benefit communities and businesses, including:
- Doubling Internet speeds to 1 Gbps (gigabits per second) for fibre customers;
- Expanding high-speed Internet availability to meet the CRTC’s universal service objective of 50/10 Mbps to more than 97 per cent of homes in the Yukon and the Northwest Territories; and
- Offering Low Earth Orbit (LEO) satellite technology to deliver 50/10 Mbps speeds to eight satellite-served communities in the Northwest Territories and 25 satellite-served communities in Nunavut.
“Sixty North Unity intends to maintain Northwestel’s established and experienced management team under the leadership of Shaw, as well as their dedicated employee base,” the statement said.
“Northwestel’s corporate headquarters will remain in Whitehorse, with the operational headquarters remaining in Yellowknife, and the regional office in Iqaluit.”
