Canada’s telecommunications regulator, the CRTC, has made a significant decision that will impact the internet services market 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 comes after a temporary ruling last year that required Bell and Telus to provide access to their fibre-to-the-home networks only in Ontario and Quebec. The CRTC’s goal is to stimulate competition in the internet services market, particularly in provinces where independent companies are struggling. The regulator’s broader review could potentially make this ruling permanent and apply it to other provinces as well.
However, Bell responded to the initial ruling by reducing its network spend and cutting jobs, citing the impact of the regulatory policies. Despite this, the CRTC’s latest decision only applies to existing fibre networks, giving large companies a head start to recoup their investments before competitors can access the infrastructure. New fibre infrastructure built by telecoms won’t be available to competitors for five years.
The CRTC’s decision also exempts cable companies like Rogers Communications Inc. from the mandate, based on a cost-benefit analysis. The regulator held a weeklong hearing in February, where it heard from various industry stakeholders and advocates. The expansion of wholesale access to fibre networks is expected to increase choice and competition for internet customers in Ontario and Quebec.
While some larger companies opposed the CRTC’s direction, smaller competitors like TekSavvy welcomed the ruling, hoping for a more level playing field in the internet market. The Competitive Network Operators of Canada also supported the decision, anticipating increased home internet choice for Canadians. However, challenges remain, including disparities created by the head start and asymmetrical obligations between incumbent providers.
Bell had proposed conditions to mitigate potential disadvantages, emphasizing the importance of motivating companies to invest in their networks. The CRTC’s ruling requires both telephone and cable companies to build out networks within their traditional serving territory to prevent them from halting investments and acting solely as wholesalers.
Overall, the CRTC’s decision aims to balance facilities-based investment with increased competition and innovation in the internet market. While Bell Canada, Telus, and Rogers are reviewing the decision, Quebecor Inc.’s CEO sees it as a positive step towards increasing competition. The final access rates, to be set by the CRTC, will be critical in determining the success of this ruling.
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 promote competition, increase choice for consumers, and encourage investment in network infrastructure. The impact of this ruling will be closely monitored as it unfolds in the coming months.