The Canadian Radio-television and Telecommunications Commission (CRTC) will continue to allow the big three telecom companies – Rogers, Telus, and Bell – to use each other’s fiber-optic networks to sell high-speed internet and other services outside their traditional territories. This decision comes despite concerns that the move could negatively impact small competitors. The commission stated late Monday that maintaining this arrangement is in the public interest.
The initial ruling in November 2023 mandated that companies have access to existing fiber-optic networks in Ontario and Quebec, irrespective of the original builder, to foster competition. The CRTC’s final decision in August 2024 extended this mandatory wholesale access to networks across Canada. Some telecom providers, including Bell Canada and independent regional players, had protested the ruling.
They argued that such access could reduce competition and investment in broadband infrastructure. However, the CRTC found that the consumer benefits brought about by allowing access for Rogers, Telus, and Bell outweighed any negative impacts on investment.
Crucial network access ruling
Telus, which has developed fiber-optic networks in Alberta and British Columbia but not in Eastern Canada, began selling high-speed fiber-optic internet service in Ontario and Quebec in May. The company pays a wholesale price per customer to use their competitors’ networks. Telus spokesperson Richard Gilhooley described the decision as a significant step toward fostering greater competition, affordability, and innovation for Canadians.
Small internet providers, however, express fear over their sustainability under the current setup. Paul Andersen, chair of the Competitive Network Operators of Canada (CNOC), stated that delays in accessing fiber have already hampered smaller players, and they might be gradually pushed out of the market. Large companies can bundle services like wireless and internet, potentially undercutting smaller internet-only businesses.
The CRTC announced it would review its final decision from August 2024, which expanded mandatory access to fiber-optic networks across Canada, by summer 2025. Cogeco, a regional telecommunications company, voiced disappointment over CRTC’s delays in finalizing the Canadian wholesale regime. Cogeco emphasized the importance of swift action to support competition and consumer choice during economic uncertainty.
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