Canada’s telecommunications regulator, the CRTC, has made a significant decision that will impact the landscape of internet services in the country. The ruling expands on a previous decision that allowed smaller internet providers to access rivals‘ fibre networks to offer their services to customers. Starting next February, large telephone companies like Bell Canada, Telus Corp., and SaskTel must provide competitors with access to their fibre networks nationwide for a fee. This decision aims to increase competition and provide consumers with more choice in internet services.
The CRTC’s initial ruling last year required Bell and Telus to provide competitors with access to their fibre-to-the-home networks in Ontario and Quebec. This decision was made to stimulate competition in provinces where independent companies were struggling. The CRTC’s latest ruling builds upon this initial decision and applies to existing fibre networks across the country. The regulator recognizes the high cost of building out fibre infrastructure and has allowed a five-year head start for large telecoms to recoup their investment costs before competitors can access the infrastructure.
While some larger companies have voiced opposition to the CRTC’s direction, smaller competitors like TekSavvy have welcomed the decision. The Competitive Network Operators of Canada, an industry association representing independent internet service providers, also supports the expansion of wholesale competition to new markets. This move has the potential to bring increased home internet choice to millions of Canadians.
Bell had proposed conditions to mitigate potential disadvantages of expanded wholesale access, including the five-year head start for network builders. The CRTC’s ruling also requires telephone and cable companies to build out networks within their traditional serving territory to prevent large companies from halting investments and acting solely as wholesalers in certain areas.
Quebecor Inc. chief executive Pierre Karl Péladeau sees the decision as positive for increasing competition and allowing its Videotron subsidiary to continue expanding throughout Canada. However, he emphasizes the importance of setting just and reasonable access rates, which the CRTC plans to do by the end of the year.
Overall, the CRTC’s decision aims to balance facilities-based investment with the desire for increased internet competition and innovation. RBC telecommunications analyst Drew McReynolds views the ruling as balanced and likely better than feared, with the objective of providing consumers with more choice and better internet services.
In conclusion, the CRTC’s decision to expand wholesale access to fibre networks is a significant development in Canada’s telecommunications industry. It aims to increase competition, provide consumers with more choice, and encourage investment in network infrastructure. The final access rates set by the CRTC will be critical in determining the success of this ruling and ensuring a fair and competitive market for internet services in Canada.