Canada’s telecommunications regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), recently made a significant announcement that will impact the country’s internet service landscape. 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 revealed a decline in competition within the industry, leaving many Canadians with limited options for high-speed internet.
The CRTC’s move aims to increase competition in the market, providing consumers with more choices for higher-speed internet at potentially lower prices. The regulator believes that by opening up access to fibre optic networks, it will address monopolies and improve affordability for Canadians. However, the effectiveness of this change will depend largely on how the access fees for rivals are set by the CRTC.
Jason Childs, a professor of Economics at the University of Regina, emphasized the importance of getting the pricing right to ensure that consumers benefit from reduced prices and continued network maintenance and expansion. The CRTC’s decision to allow competitors to use fibre networks of large telephone companies in Ontario and Quebec last year saw competition decline significantly, highlighting the potential risks associated with this new regulation.
In Saskatchewan, where there are three significant high-speed internet providers – SaskTel, Rogers, and Access Communications – the impact of this decision will be felt. Access Communications will now have the opportunity to utilize SaskTel’s fibre network for a fee, potentially increasing competition in the province. However, SaskTel has expressed concerns that the new regulations may hinder the expansion of high-speed internet infrastructure, as it could disincentivize investments in network upgrades.
The CRTC’s guideline only applies to existing fibre networks, with any new fibre built by large telephone companies becoming available to competitors after five years. This approach aims to give companies a head start in recouping their investments and connecting more Canadians to fibre sooner. SaskTel has raised objections to the new regulations, arguing that they could slow down or even halt the expansion of fibre optic networks in the province.
As the industry continues to evolve, factors such as emerging technologies like Starlink, a high-speed satellite internet service, could further impact the expansion of fibre networks. It remains to be seen how these developments will shape the future of internet service competition in Canada and whether the CRTC’s decision will ultimately benefit consumers. The onus is now on large telecom companies like SaskTel to navigate the challenges and opportunities presented by this regulatory change.