Ottawa rigged CRTC on wholesale internet access ‘permission for more competition’

Ottawa rigged CRTC on wholesale internet access ‘permission for more competition’

Ottawa says it will maintain a decision by the Canadian telecom regulator, allowing the country’s largest internet companies to serve customers using fiber networks manufactured by their rivals – as long as they do this outside their main areas.

Industry Minister Melani Jolie said in a statement on Wednesday evening that the CRTC policy will allow more competition on existing networks for high-speed internet services across the country. “

Jolie said in the statement, “His decision to maintain compulsory wholesale access framework was based on comprehensive consultation with experts, competition bureau and more than 300 public submissions.”

“By that end, the government is declining to change the CRTC’s decision to expand compulsory wholesale access.”

In June, the regulator issued its final decision on the controversial case, which has raised Telos Corp against rivals Bell Canada and Rogers Communications Inc., and many small providers opposed the structure.

Bell had argued against the policy, saying that it discouraged major providers from investing in their own infrastructure, while some independent carriers expressed concern that it would make it more difficult for them to compete against big players.

Tales defended it as a way to promote competition in areas where it does not have its own network infrastructure, which then improves the ability for customers.

Bell, Rogers called Ottawa to reverse the first decision

A previous version of the framework was initially kicked on a limited basis in May 2024, when the regulator began the need of bell and tails to give the contestants-both large and small companies include both the big and small companies-access to their fiber-to-the-hom network in exchange for a fee.

While those rules were initially implemented only in Ontario and Quebec, the CRTC then announced that they would be extended to a network owned by nationwide telephone companies in the last August.

CRTC chose the policy only to apply to existing fiber networks, “in recognition” that fiber manufacture is expensive. “Any new fiber infrastructure built by large telecom cannot be made available to the contestants for five years.

But the federal government then asked the Commission to reconsider whether the larger three providers should be able to act as wholesalers under the rules, citing concern about the feasibility of small internet providers to act as an alternative.

The CRTC opened a consultation in the matter and issued a temporary decision in the last February, which continued its review and upheld the policy.

In June, the CRTC stated that it determined that its outline effectively balances the need for both competition and investment, while only the “minor” on the market share of the regional carrier reduces the effect of the near-period.

Ottawa had a CRTC decision to maintain or change the decision till August 13.

“With immediate competition and increasing consumer choice, the CRTC decision aims to reduce the cost of high -speed internet for Canadian people and will contribute to our broad mandate to reduce the cost in the board,” Jolie said on Wednesday.

Bell, along with Rogers and Canadian Telecommunications Association, asked the federal government to turn the regulator’s decision.

White internet cables go into a modem.
Bell, along with Rogers and Canadian Telecommunications Association, asked the federal government to turn the regulator’s decision. (Istock)

Telecommunication reaction

Bell responded to the February decision by cutting investment plans by $ 500 million this year and slowing down its fiber network from 1.5 million places, intending to connect it.

Meanwhile, Telus offered fiber internet service in the entire Ontario and Quebec last November under the wholesale regime, saying that the Atlantic provinces were planned to increase their offerings.

Telus President and CEO Darren Entvistal appreciated the decision of the federal government, called it “a historical ruling that confirms Canada’s competition, choice, innovation and nation-building commitment to investing infrastructure.”

Last month, the company announced that it would spend $ 2 billion to distribute broadband services in Ontario and Quebec over the next five years – an investment that was held responsible for CRTC’s wholesale fiber framework.

“This decision confirms that public policy in our country is directed by a national diversity, evidence and long -term interests of the Canadian people,” Antavistal said in a statement, “the decision in our country.

“It sends a strong signal to consumers, businesses and investors that the Canadian regulatory system is strong, transparent and effective in balanced and enabling the government’s policy.”

Bell’s representatives did not immediately respond to the remarks request.

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