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CRTC increases internet providers‘ ability to offer services through telecoms‘ networks

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 stimulate competition and increase choice for consumers across Canada.

The CRTC’s initial ruling last year required Bell and Telus to provide access to their fibre-to-the-home networks in Ontario and Quebec. This decision was made to address the lack of competition in these provinces and help independent companies struggling to compete. The success of this ruling led to the expansion of the mandate to include all existing fibre networks owned by large telecom companies. However, any new fibre infrastructure built by these companies will not be available to competitors for five years, allowing them to recoup their investment costs.

The CRTC’s decision also exempts fibre networks owned by cable companies, such as Rogers Communications Inc., based on a cost-benefit analysis. This exemption recognizes the smaller proportion of fibre networks owned by cable companies in Canada. The expanded ruling follows a weeklong hearing where the CRTC heard from various industry stakeholders, major and independent internet providers, and other advocates.

The CRTC emphasized the positive impact of increased competition on internet services in Ontario and Quebec following the initial ruling. Chairperson Vicky Eatrides stated that the decision aims to provide Canadians with more choice, high-quality internet services, and lower prices. The CRTC’s goal is to create a competitive market that benefits consumers while maintaining incentives for companies to invest in network infrastructure.

While some larger companies opposed the CRTC’s direction during the hearing, smaller competitors like TekSavvy welcomed the ruling as a step towards a more level playing field in the internet market. The Competitive Network Operators of Canada also expressed excitement about the expansion of wholesale competition to new markets, potentially increasing home internet choice for 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 includes requirements for both telephone and cable companies to build out networks within their traditional serving territory to prevent companies from halting investments and acting solely as wholesalers.

Overall, the CRTC’s decision has been met with a mix of reactions from industry players. RBC telecommunications analyst Drew McReynolds believes the ruling strikes a balance between facilities-based investment and increased competition. The decision is seen as a positive step towards fostering innovation and choice in the Canadian internet market.

In conclusion, the CRTC’s expanded ruling on wholesale access to fibre networks is a significant development in Canada’s telecommunications industry. It aims to promote competition, increase consumer choice, and drive innovation in internet services across the country. The impact of this decision will be closely monitored as it unfolds in the coming months and years.

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