Real Cost Factor(RCF)
The QINIQ network services every community in Nunavut. From Iqaluit to Grise Fiord, QINIQ provides Broadband Internet services to the people, businesses and organizations of Nunavut. QINIQ sells basic Internet accounts for $80.00 per month. This standard retail rate reflects the fact that QINIQ receives federal funding to purchase satellite capacity, upgrade the QINIQ network and to assist with sustainability. If we did not receive this funding, the end user cost would be $200.00, or two and a half times the rate we currently charge.
QINIQ bills the RCF fee to all accounts that are ineligible for the “standard” retail rate. QINIQ exists to support consumers, business and not-for-profit organizations resident in Nunavut. Our investor contributions are specifically linked to these sectors, and our standard prices reflect investor contributions for these target users only. These supported users include:
- Residents of Nunavut
- Community Organizations
- Housing Associations
- Inuit Organizations
- Power Suppliers
- Nunavut-based Businesses
- Nunavut Legislature and MLA’s
Government of Nunavut “non-core operations” The following organizations are not covered under the investment contribution program, and are therefore required to pay the RCF. They are not covered, because they were considered ‘already served with broadband’ before QINIQ launched, or they were subsidized under another federally funded program Government of Nunavut “core operations”
- Government of Canada
- Primary Schools
- Secondary Schools
- Public Access Sites located in schools
- Health Centers
- Post Office
- Non-Residents of Nunavut
The Real Cost Factor (RCF) increases the QINIQ price by 150% to properly cover these additional users. Without the RCF, our targeted users would suffer decreased performance and the network would not be sustainable.
Why is the RCF charge needed? Most Nunavut communities cannot sustain commercial Broadband Internet service – monthly costs would far outweigh revenues. QINIQ would not exist without bandwidth contributions from Infrastructure Canada. These bandwidth investments assist QINIQ in providing satellite capacity to the residents and businesses of Nunavut. This assistance is not intended to cover any government core operations or non-resident of Nunavut. These users must pay a higher retail rate, which reflects the cost of the service, as if no assistance was available.
It is the policy of the Government of Canada that contributions must be matched by “revenue from other sources”. In the case of QINIQ “standard” services, the matched funds are the fees paid by eligible QINIQ customers. Should a customer that is already funded by the Government of Canada wish to purchase QINIQ services, that customer would be deemed ineligible for the Standard Price if the customer’s own contribution agreement with Canada specifies that said funds were not to be used for matching purposes. Otherwise, payment for QINIQ services would not legitimately be coming from “other sources”. That customer would therefore be charged the RCF.
HELP, I do not think I should be charged! What can I do? If you are being charged the RCF and do not think you should be, please contact the QINIQ accounting department at firstname.lastname@example.org.