Canada’s telecommunications regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), recently made an announcement that could potentially shake up the internet service industry in the country. Starting in February, large internet providers with high-speed fibre optic networks will be required to allow competitors to use their infrastructure for a fee. This decision comes after a public consultation forum in 2023, where the CRTC aimed to address the declining competition in the industry, leaving many Canadians with limited options for high-speed internet.
The CRTC’s goal with this new regulation is to increase competition in the market, ultimately leading to more choices for consumers and potentially lower prices for higher-speed internet services. The CRTC believes that by opening up access to fibre optic networks, it will help address monopolies and improve affordability for Canadians. However, the effectiveness of this change will largely depend on how the CRTC sets the access fees for rivals, which is expected to be determined by the end of the year.
In Saskatchewan, where there are three significant high-speed internet providers – SaskTel, Rogers, and Access Communications – this new regulation could have a significant impact. With the announcement, internet providers like Access Communications will now have the opportunity to utilize SaskTel’s fibre network for a fee. However, SaskTel has expressed concerns about the potential effects of this change on their ability to expand their fibre network infrastructure.
Jason Childs, a professor of economics at the University of Regina, highlighted the importance of setting the access fees at an appropriate level to ensure that consumers benefit from lower prices and that there is continued investment in network maintenance and expansion. The CRTC’s decision to allow a five-year head start for large telephone companies to profit from new fibre builds before making them available to competitors aims to incentivize investments in expanding fibre networks and connecting more Canadians to high-speed internet.
Despite the potential benefits of increased competition, there are concerns about how this new regulation may impact the expansion of fibre optic networks in Saskatchewan. SaskTel has raised issues about the potential disincentives for owners to invest in expanding their networks and has called for equitable application of the service mandate to all major providers in the area, including Access Communications.
As the industry continues to evolve with the introduction of new technologies like Starlink, a high-speed satellite internet service, the landscape of high-speed internet infrastructure in Saskatchewan may see further changes. It remains to be seen how this new regulation will play out and whether it will ultimately benefit consumers by providing more choices and lower prices for high-speed internet services.