Small company fears bankruptcy after losing internet contract to Bell Aliant

A small Nova Scotia-based company is upset about losing a provincial government contract to deliverhigh-speed internet, saying the loss could force it out of business.

Acadian Communications of Chticamplost to Bell Aliant in the second round of bidding for qualified suppliers to provide high-speedinternet service.

It missed the first round of bidding due to achange incompany ownership.Bell Aliantwas among the successful biddersin that round and is working on providing service in theChticamp area.

Andrew LeBlanc, owner of Acadian Communications, said hiscompany is already preparing to lose customers.

"As Bell comes in and steals away customers, there's a point in the not too far future where I think we could go under," he said.

Acadian Communicationsprovides internet for around 800 customers and employs four people, including LeBlanc. He said if business drops to just 200 or 300 customers, the company won't beprofitable anymore.

Smaller companies losing out

LeBlanc said they offered a lower bid and askedfor a 40 per cent subsidyfrom the province, while Bell Aliantasked for a 50 per cent subsidy.

"They're going to cover the maximum amount of houses which is great for themselves and great for Nova Scotia residents, but for myself and several other companies across the provinceit's not good at all," said LeBlanc.

The second round of bidding went entirely to Bell Aliant. The company will provide high-speed internet for another 32,000 homes and businesses. The provincial government is providing $59 million for the project.

"In effect, the provincial government is funding the biggest telecommunication company to bankrupt our company," said LeBlanc. "Something with that just doesn't sit right."

Develop Nova Scotiaresponds

A spokesperson for Bell Aliantdeclined to comment and told CBC News to direct any questions about the contract to Develop Nova Scotia.

Deborah Page, communications directorat Develop Nova Scotia, said in an email Bell Aliant was awarded the contract based on many factors, including timeline, quality and price.

She said in the first round of bidding, Nova Scotia-based companies Seaside Communications, Mainland Telecom and Cross Country won three out of the five contracts.

Bell Aliant's Chticamp project is already underway and is planned to be finished by spring 2021.