2011 Year in Review Continuing our dedication to our customers NEXT PAGE Welcome A year can be a long time in the life of a company, especially a telecommunications company, even if we are in our sixties. And while there wasn’t anything particularly wrong with us in January 2011, I know that over the last 12 months, we saw some pretty important changes and improvements. You’ll read about them in this report. 2011 was a year where we expanded our network, strengthened our infrastructure and provided more products and better services to more people across the North. Cell phone service, high-speed internet, digital cable and cable home phone, (all four in some areas), are available now in more than 60 communities in our operating territory. The reliability of those services was strengthened considerably when we completed a redundant fibre link between the Yukon and Northwest Territories. 2011 was a year where we moved even further towards streamlining services to our customers. The one-stop shop concept for purchases, repair and billing came closer to reality and is on schedule to be completed by 2013. 2011 was a year we saw our efforts to promote our diverse communities rewarded and recognized and it was a year for creating new relationships with Aboriginal businesses. A Word from Our President Lastly, but perhaps most importantly, 2011 was a year where our employees rose to the challenge. I don’t think you’ll find a more committed and dedicated workforce in the North. They gave their all and demonstrated their flexibility as they adapted to the changing business landscape. Through their hard work, they made this company successful. It is because of our employees I will confidently say in January 2012, Northwestel is even better than it was a year ago, and for that I thank each and everyone. We’re good now, but we are going to be great. Someone asked me the other day if I thought Northwestel was a better company in January 2012 than it was in January 2011. It took me no time to say ‘Absolutely!’ PREVIOUS PAGE Paul Flaherty President and CEO, Northwestel 3 NEXT PAGE Did You Know? Nearly half of our It sounds like a simple enough concept: a customer calls the Northwestel Customer Care Centre, she gives her name to the Customer Service Representative who brings up her account information on the computer. The customer’s billing information for all of her Northwestel services – phone, wireless, cable television, internet – appears on one screen. In an instant, the service rep can answer a question about her bill, recommend a better product bundle or offer a new feature that better suits her lifestyle. customers (44%) live in the three capital cities – Whitehorse, Yellowknife, and Iqaluit. Seventy per cent of our communities have less than 500 customers While it sounds easy, the devil is in the details. Ken Todd is up to his neck in details. “It’s like trying to overhaul the engine of a car while it’s travelling at 100 kilometers an hour down the highway,” jokes Todd, Business Transition consultant on the project. It’s called “One View of the Customer”, part of the Business Systems Evolution (BSE) program of improvement projects at Northwestel. the whole package. Every aspect of the company – from accounting to purchasing to human resources – is impacted in some way by BSE. It’s been a challenge, to say the least. In 2010, Todd and a team of managers, supervisors, service reps and consultants began working out just how BSE will transform Northwestel. In 2011, the company’s wireless platform was moved over to the new system; in 2012 the telco part of the company – phone and ADSL internet – will be integrated as well; video and cable internet services will follow in 2013. “We learned a lot with the wireless migration,” says Todd of the 2011 project. “We did miss a few things, but the lessons learned have definitely helped smooth the process for the next stages.” Todd says improving the customer experience is the ultimate goal for Northwestel. It’s a monumental task. Todd’s group is taking about nine different information databases and customer service systems – many that have been running for 15-20 years – and updating some, eliminating others, and integrating “We want the customer interaction to be faster, simpler, and better,” he says. “And we want the experience for people serving our customers to be faster, simpler and better as well.” March Northwestel was recognized as one of Canada’s Top Diversity Employers by the Globe and Mail Media fans in Fort Smith rejoice as digital television and cable Internet come to town PREVIOUS PAGE 5 NEXT PAGE Transforming Our Business Expanding Services Across Our Region 2011 saw Northwestel expand and upgrade its networks to give customers faster and more reliable service, and more choice of products both at home and at work. Amanda, Dealer Relations, visits Pangnirtung Nunavut. Westarm Twilight, an oil painting by Miguel Chenier of Cambridge Bay, adorns Nunavut’s phone directory cover Robbie Craig of Behchokö’s painting The Untouched is the winner of the NWT directory cover contest Westarm twilight PREVIOUS PAGE 6 NEXT PAGE The snow was already starting to fly in Nunavut when Kathy Anilniliak, a call centre team leader from Iqaluit, travelled to the community of Pangnirtung to help launch cell service there in October. Pang, as the community is known, became the eighth in Nunavut to receive wireless service from Northwestel. Did You Know? Northwestel has installed 3,837 kilometers of high-capacity fibre optic cable – enough cable to stretch from Edmonton to Montreal. Installing that line can cost as much as $80/metre to lay fibre-optic cable in some parts of our territory – 10 times as much as it costs in the South. “Pangnirtung is such a beautiful place; it was really nice to wake up to the breathtaking view every day, from the sun coming up in the morning to the sun setting at night, it was just amazing,” she said of her trip. “The community was just so welcoming and happy that cell service had become available there.” Pangnirtung’s 1,300 residents were among thousands of Northwestel customers who enjoyed new or improved services in 2011. That’s because Northwestel built redundancies into its operating system making it more reliable, upgraded the cable network enabling the expansion of digital voice and television services to many communities, and replaced software to provide a better quality product to many more. Marsh Lake: Cell phone service was extended beyond Whitehorse after Latitude Wireless installed a new 3G site in the Marsh Lake area. Northwest Territories: Broadband internet access was provided to Dettah, Tsiigehtchic and Tulita with assistance from Industry Canada. Late in the year, Northwestel partnered with Falcon communications to provide broadband internet services to Jean Marie River, Wrigley, Kakisa and Nahanni Butte bringing the number of communities served by Northwestel with broadband internet access in the Northwest Territories to 24. Other 2011 highlights include: Iqaluit: Cellular customers now enjoy faster data speeds on their smart phones and a better call quality as a result of a network upgrade from CDMA 1xRTT to EVDO. Northwestern British Columbia: Northwestel extended its modern high-speed telecommunications network to Dease Lake 9 and Iskut 6, locally known as Eddontenajo, in partnership with ANTCO. With the increase in both internet speed and reliability, the communities now have better access to health-care services and online education opportunities. Yukon and the NWT: Voice Mail service across the two territories benefitted from a $1.6 million upgrade and the installation of new software. Fort Smith: A $2.3 million investment in equipment and infrastructure improvements to the newly purchased Fort Smith Cable system in September, enabled Northwestel to introduce digital TV and cable internet to the area. Fort Nelson: Northwestel upgraded the cable system in the community enabling customers to tune into digital TV. April Lillian Hvatum-Brewster is appointed to Northwestel’s Board of Directors The Untouched PREVIOUS PAGE 7 NEXT PAGE Serving Our Customers On Time, On Budget, In Scope Northwestel knows its customers and the diverse conditions that make our operating area so unique. That helps us get the job done right. Pond Inlet, Nunavut Three Northwestel employees have their heads shaved to raise money for cancer research. Northwestel and employees donated $8,000 to the Canadian Cancer Society. Northwestel Ski Loppet in Yellowknife Goes Green PREVIOUS PAGE 8 NEXT PAGE When the RCMP decided to upgrade its communication networks at every detachment across the country, it went to the experts at Bell Canada. When Bell Canada looked at the job facing them in the North, they came to us. The project had huge technical and logistical challenges. More than 66 detachments – some in the most remote outposts in the country – needed serious technical upgrades. Service was so slow in some isolated regions that it could take an hour to download a single document – if it could be downloaded at all. The new system had to be fast, reliable, and provide secure internet access for sensitive communications. Carmen, Sales Account Manager, at Northwestel’s Iqaluit location. “With a 12-month turnaround time on the project, there was little room for delay or error,” recalls the project’s business prime, Paul Gruner. “We faced some massive logistical challenges, to say the least.” “They said they were amazed by our ability to work under the tight deadlines and in those conditions,” says Bongers. “They also appreciate how we’ve enhanced their day-to-day business.” Whitehorse’s Hans Bongers was given the nod to project manage the job. He had to co-ordinate the activities of about 40 people, moving crews and equipment thousands of kilometers, while taking into consideration blizzards, fog, flight cancellations and anything else working in the North entails. Bongers admits there were a few sleepless nights, especially when upgrading the RCMP’s service meant having to modernize an entire community’s infrastructure. “But we delivered on-budget, in-scope, and on time,” he says. “Hans was constantly battling with unknowns, like the weather,” says Gruner. “It was his ability to adapt quickly to changing conditions that made this project a success. He did a phenomenal job.” The project has had a spin-off benefit for civilians in these remote locations. “Having the RCMP as an anchor tenant has allowed us to leverage that investment to bring more services to those communities,” says Gruner. “Many remote northern communities now have better infrastructure overall thanks to this project.” The RCMP was extremely satisfied with this project, as was Bell Canada. MAY Yukon’s first 3G wireless service outside of Whitehorse begins at Marsh Lake A moonlight walk inspired this year’s Yukon/Northern BC phone directory artisT PREVIOUS PAGE 9 NEXT PAGE Serving Our Customers Making Our Customers Count Northwestel employees are committed to improving the customer experience. Throughout 2011, many went the extra mile. Aven Lee, Customer Service Rep, at work in Whitehorse. Photo: archbould.com June Directory recycling raises $9,000 for NWT schools; program begins in Iqaluit Xplornet Communications acquires broadband subscribers in Alberta and BC from NWTel-owned NetKaster PREVIOUS PAGE 10 NEXT PAGE Did You Know? We’re your neighbours. Northwestel is the largest private sector employer of permanent northern residents, with more than 600 people on the payroll. Sometimes employees push themselves out of their comfort zones to help a customer. Damien Qaunaq is a Community Service Tech in Arctic Bay, a town of 800 people on the north-western tip of Baffin Island. Damien received an order for a phone line in a recently developed part of town. Unfortunately the new line had not yet been connected to the main line. A couple of days later Shannon got this email: “Our internet is connected! Thank you so much for all of your assistance these last few days. Without your help, none of this would have occurred so thank you for taking the time to ensure/ provide quality service. Please accept our most sincere thanks for your efforts – I hope Northwestel values your work as much as we do.” Although Damien is not a splicer, Robert Steele, a cable splicer based in Iqaluit rushed him the required tools and walked him through the procedure by phone so that our customer got connected as quickly as possible. And sometimes employees find innovative ways to help their colleagues. When we think of customers, it’s not only those people who buy our services, it’s also the people we work with every day. Northwestel Financial analyst, Matt Brasnett consulted with his colleagues in Customer Experience to create a detailed analytic tool that has saved them time and improved the financial information they needed to help them run the business. “What made the difference here?” asked Joe Manoll, Northwestel General Manager for Iqaluit. “Working creatively together. This meant a speedy hook up for the customer. For Northwestel it meant keeping a splicer at work in Iqaluit and saving thousands of dollars in travel costs”. Sometimes employees do that little extra to put a smile on a customer’s face. Shannon Tessier’s job doesn’t involve talking directly to customers but one evening, as she was packing up to leave work for the day, she heard someone ringing her office building’s doorbell. At the front door was a woman who had missed her appointment window to have her services moved to her new home. She was frantic, as she needed her internet connected before the weekend. Shannon took the customer’s information, made some calls and got the internet service installed in the customer’s home before end of day Friday. Her diligence paid off. With multiple cost centres and expense items on numerous spreadsheets, the CE team was spending many hours crunching numbers. Matt developed a reporting system that pulls together the budget and actual results in minutes. He used what he created to develop a new and improved expense forecasting template which has become instrumental in calculating our Year End Expectancy reports. Whether at home or at work – yours or ours – Northwestel employees are committed to putting the customer first. NOrthwestel’s NEW fibre optic link successfully reroutes traffic to avoid a major service outage in the NWT Northwestel sponsors aboriginal day festivities from Fort Nelson to Inuvik to Iqaluit PREVIOUS PAGE 11 NEXT PAGE Serving Our Customers The Reliability Factor Northwestel continues to invest heavily in its infrastructure to build a more reliable service for our customers. JuLY august More than 60 remote communities now receiving high speed Internet service through Northwestel Northwestel receives COR certification for taking a ‘best practices’ approach to implementing health, safety and return-to-work programs PREVIOUS PAGE 12 NEXT PAGE Improving Our Workplace Reflecting Those We Serve As a Northern company, we believe it is important that our workforce reflects the people we serve. Our customers want to do business with fellow northerners. Photo: archbould.com OCTOBER Northwestel launches cellular voice service in Pangnirtung on Baffin Island Dettah is the most recent community to enjoy Northwestel broadband Internet access PREVIOUS PAGE 14 NEXT PAGE Did You Know? We support local business. In 2011 Northwestel was selected as one of Canada’s Best Diversity Employers, an award presented by the editorial team at Canada’s Top 100 Employers. Northwestel was the only company from the North recognized for this award and is one of only four winners with less than 1,000 employees. Northwestel spent more than $1.6 million on air travel in the north in 2011, much of it on charters to service equipment in remote locations. We spent just under $7 million for products and services from aboriginal companies in 2011. Northwestel knows it’s important to maximize Aboriginal participation in the company. We have developed several initiatives to attract and retain Aboriginal employees including an apprenticeship program that gives technicians the opportunity to attend technical school; diversity training, and the hiring of local people as Community Service Technicians. We know hiring local is good business – it provides better service for customers, increases employee retention and helps grow and develop the local workforce and economy. We have a strong commitment to giving back to the communities in which we operate – not only by investment, sponsorships and donation, but by providing more than 600 jobs and competitive salaries for the people of the North. Through our Diversity Initiatives – like creating an Aboriginal Liaison position on our management team, targeting Aboriginal youth for our scholarship fund and operating an Inuktitut contact centre – we continue to grow our Aboriginal representation in our company. Some members of the Northwestel Iqaluit team. “This is an incredible honour for Northwestel,” President and CEO Paul Flaherty said of the award. “Ensuring that our company is welcoming to employees of all races, cultures, religions and abilities is not simply a project at Northwestel, it is how we operate and what we strive for in our hiring practices.” Is it perfect? Not yet. Of our 600 employees, about 70 are self-identified as Aboriginal. But we feel we are moving in the right direction. The Diversity Award is a sign of that. November Network upgrades bring faster, better service for wireless customers in Iqaluit The show “Maximum Limit Fishing”, broadcast on Northwestel Community television, heads for the big time! PREVIOUS PAGE 15 NEXT PAGE Improving Our Workplace Growing in Partnership Our partnerships with Aboriginal businesses drive growth in the North. DECEMBER Northwestel awards $20,000 to outstanding post-secondary students from across the North Whitehorse Northwestel employees tied red ribbons to company vehicles in support of MADD PREVIOUS PAGE 16 NEXT PAGE Three BC First Nations communities will access broadband internet service for the first time Not only does Northwestel strive to ensure our workforce reflects the communities we serve, it endeavours to partner with Aboriginal organizations and governments. 2011 saw us grow and develop in this area. These close business relationships have resulted in increased revenue and a larger customer base for Northwestel and more effective relationships with regional Aboriginal organizations. They have also helped develop business and technical skills within the Aboriginal organizations, as well as presented the communications industry as a potential career opportunity for members of their communities. Working on an overhead line in Iqaluit. Ardicom Digital Communications Inc., created in the 1990’s, was Northwestel’s first partnership. Since then we have established seven more, from Nunavut to British Columbia: • Waterways Communications Inc. – a joint venture with the Fort Nelson First Nation, provides communications products using both satellite and microwave technology for resource companies operating within the Horn River Basin. • L atitude Wireless Inc. – in partnership with the Dakwakada Development Corporation (the development arm of the Champagne Aishihik First Nations), offers cell phone service throughout the Yukon Territory. • A ll Nations Trust Company, ANTCO – provides financial services to Aboriginal entrepreneurs. It managed the Pathways to Technology project, a province-wide First Nations connectivity initiative in northern BC • Tundra Communications Inc. – in partnership with the Inuvialuit Development Corporation (the development arm of the Inuvialuit people), offers a full suite of telecommunications services to natural resource companies operating in the Inuvialuit Settlement Region. • Falcon Communication Ltd. – is the General Partner of Broadband Business Alliance Limited Partnership and has acted as the federal government’s community champion for the NWT Broadband Project since 2005 • ATCO Structures & Logistics and NASCo – is a joint-venture partnership with ATCO Structures & Logistics and the Northern Aboriginal Services Company (NASCo) to operate and maintain 157 Northwestel microwave sites in the Northwest Territories, northern British Columbia, and the Yukon. • Tahltan River Communications Inc. – in partnership with the Tahltan First Nations Development Corporation (the development arm of the Tahltan First Nation) provides voice, internet, and data services to resource companies operating in north-western British Columbia. A CRTC decision opens the North to local telephone competition For a complete list of Northwestel Media Releases please visit here www.nwtel.ca/media-room PREVIOUS PAGE 17 NEXT PAGE A Part of Our Community Building Stronger Communities Supporting the communities where we live, work and play will continue to distinguish Northwestel from our competitors. Northwestel sponsors Hockey Day in Canada. PREVIOUS PAGE 18 NEXT PAGE From spelling bees to cross country skiing, Northwestel contributed more than $551, 000 in sponsorships and in-kind donations to events and organizations in 2011. We know the Great Northern Arts Festival in Inuvik, the Kivaliq Science Educators in Nunavut, and the Hospital Foundations in Yukon, Fort Nelson and Northwest Territories, just to name a few, make our communities better places to live. That’s why we continue to sponsor them and other organizations like them whenever we can. Many communities rely on Northwestel for support for everything from their communications needs to the maintenance of their local sports fields. Annual Northwestel Spelling Bee in Whitehorse, Yukon. Northwestel encourages employees to get involved in their communities through the Volunteer Involvement Fund. The program converts employee volunteer hours into direct financial support for an organization of an employees’ choice. In 2011 Northwestel donated $10,000 to employee causes and our employees volunteered 1,500 hours of their time to help various community groups. Northwestel has also been a legacy sponsor of the Arctic Winter Games since they began in Yellowknife in 1970. The sport competition for northern and arctic student athletes is held every two years. In 2011, our employees, several of whom had children competing in the games, were in the thick of planning for the 2012 Games, taking place in Whitehorse in March. We’re in your communities. Our children go to the same schools, we shop in the same stores, and we live in your neighbourhoods. We know our success is tied to yours. Northwestel thanks you for your loyalty. We strive to be the communications company of choice in the North. PREVIOUS PAGE Northwestel is proud to be a longtime supporter of the NWT Soccer Association. 19 NEXT PAGE The Last Word A Word from You Thanks for taking the time to look back at 2011 with us. We leave the last word to you, our customers. PREVIOUS PAGE 20 NEXT PAGE ...I want to thank you in writing for the help that I received from Debbie today. I have called in before and received good help... but am overly impressed with the guidance and service I received from Debbie. Mel, Whitehorse Northwestel donates more than $9,000 to NWT schools participating in the Directory Recycling Program. I had trouble with my internet and everyone at Northwestel was extremely helpful. The technicians spent hours on the phone trying to help me. Today Doug came to Carcross and fixed my internet... Doug was friendly, assuring and competent. He said he would do everything he could to fix it and he did. I am really grateful and extremely appreciative of the patient, helpful staff that I have dealt with. We thank you for having Peter Skerget fix the antenna on Mt. Iskut... It is nice to call out or receive a call and understand the other person. Margaret & Richard, Iskut Beverly, Carcross I just finished speaking with your customer service person Lee. I called to sort out my cable TV programming. I have to tell you she is fantastic. Great service, very pleasant and professional. Did a great job helping me get new programming set up and made it all quick, easy, and fun. I expect you already know but you have a great person on your team but I am sure you won’t mind hearing it again. I just wanted to pass along how handy your internet usage e-mail tool is. Last week we received the automated e-mail telling us that we had already used 50 percent of our 15 gigabyte limit by that date which we knew we hadn’t... I came to the abrupt realization that someone must have cracked our wireless internet password and were having a great old time downloading god-knows-what at our expense. I quickly reset our username and password for the wireless modem, and since then, usage seems to be back down to its regular low level. James, Whitehorse Phillip, Whitehorse PREVIOUS PAGE 21 NEXT PAGE The Board Board of Directors Officers Charles Brown, Chairman – Toronto, ON Charles Brown, Chairman – Toronto, ON Robert J. Hunt – Calgary, AB Paul Flaherty, President And CEO – Whitehorse, YT Lillian Hvatum-Brewster – Yellowknife, NT Jason Bilsky, Chief Financial Officer and Vice President, Corporate Services – Whitehorse, YT Richard I. Hardy – Nanoose, BC Piers McDonald – Whitehorse, YT Don Pumphrey, Vice President, Information and Technology Management – Whitehorse, YT Terry Mosey –Oakville, ON Mark Walker, Vice President, Business Solutions – Yellowknife, NT Louise Vertes – Yellowknife, NT Helen Klengenberg – Iqaluit, NU Barb Szabo, Vice President, Business Transition – Whitehorse, YT Andrew Smith – Toronto, ON Curtis Shaw, Vice President, Consumer and Small Business – Whitehorse, YT Susan Erwin, Vice President of Customer Experience – Yellowknife, NT Leslie McRae, Corporate Secretary to the Board – Whitehorse, YT PREVIOUS PAGE 22 NEXT PAGE For more information please visit nwtel.ca Copyright ©2012 Northwestel Inc. All Rights Reserved. Back to Page 1
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