Canada’s telecommunications regulator, the CRTC, has made a significant decision to expand access for smaller internet providers to use rivals‘ fibre networks to offer their services to customers. This decision, announced to take effect in February of next year, will require large telephone companies like Bell Canada, Telus Corp., and SaskTel to provide competitors with access to their fibre networks for a fee. This ruling applies nationwide and builds upon a previous decision that temporarily required access only in Ontario and Quebec.
The initial decision by the CRTC was made to stimulate competition in provinces where independent companies were struggling the most. This move was aimed at increasing choice and competition for internet services, ultimately benefiting consumers. However, Bell’s response to the ruling was to reduce network spending by a significant amount, leading to job cuts and potential future reductions in network investments. Despite this, the CRTC has continued to push for increased competition in the market.
The latest decision by the CRTC includes a provision that allows large telecom companies a five-year head start on new fibre infrastructure before making it available to competitors. This is intended to incentivize companies to invest in expanding their networks while still allowing for competition in the long run. Cable companies like Rogers Communications Inc. are exempt from this mandate based on a cost-benefit analysis.
During a weeklong hearing, the CRTC heard from various industry stakeholders and advocates, with smaller competitors like TekSavvy advocating for a more level playing field in the internet market. The outcome of the hearing was well-received by the Competitive Network Operators of Canada, who see the potential for increased choice and competition in the home internet market.
While larger companies expressed concerns about the CRTC’s direction, telecommunications analyst Drew McReynolds believes that the decision strikes a balance between promoting facilities-based investment and increasing competition and innovation in the internet market. The CRTC’s goal is to ensure that companies continue to invest in their own networks while also allowing for fair competition among providers.
Overall, the CRTC’s decision to expand access to fibre networks for smaller internet providers is a step towards increasing competition and choice for consumers. By balancing the needs of both large and small companies in the telecommunications industry, the regulator aims to create a more competitive and innovative market for internet services in Canada.