Canada’s telecommunications regulator, the CRTC, has recently made a decision that could potentially change the landscape of internet services in the country. The ruling requires large telephone companies like Bell Canada and Telus to provide competitors with access to their fibre internet networks for a fee. This move is aimed at stimulating competition in the market and ultimately benefiting consumers.
The decision, which builds upon a previous ruling that only applied to Ontario and Quebec, will now be expanded to other provinces starting in February. This means that smaller internet providers will have the opportunity to use rivals‘ fibre networks to offer their services to customers. While this could potentially lead to lower prices for Canadians, it is still too early to determine the full impact of this decision.
Bell Canada, one of the major players in the telecom industry, has responded to the ruling by reducing its network spending by $1.1 billion by 2025. The company stated that the ruling has diminished the business case for further investment in their network. However, the CRTC has made it clear that the decision only applies to existing networks, and any new fibre built by the large telecoms will be made available to competitors in five years.
More competition in the market generally leads to better prices for consumers. However, the success of this expanded access will depend on the rates set by the CRTC at the end of the year. Companies like TekSavvy, an independent internet service provider based in Ontario, are eagerly awaiting the new rates to determine if they will utilize the fibre networks. Andy Kaplan-Myrth, vice-president of regulatory and carrier affairs at TekSavvy, emphasized the importance of getting the rates right for the success of this decision.
While the CRTC’s decision is a step in the right direction towards promoting competition in the internet services market, there are still uncertainties surrounding the potential impact on prices for consumers. It remains to be seen how companies will respond to the expanded access to fibre networks and whether this will ultimately lead to lower prices for Canadians. As the CRTC works towards setting new rates by the end of the year, the industry and consumers alike will be watching closely to see how this decision unfolds.