The Canadian Radio-television and Telecommunications Commission held firm on its previous decision that Telus, Bell and Rogers are allowed to expand into each others’ fiber networks where they don’t already have their own infrastructure.
Canada’s telecom regulator has upheld its decision allowing large telecoms to resell internet services through rivals’ fibre networks, siding with arguments made by Telus Corp.
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in a long-running policy debate over competition in the sector.
The verdict prompted strong reactions from other companies and industry groups opposed to the decision, with some calling for Ottawa to intervene.
Given the steep cost of building infrastructure, the fibre wholesale framework was designed to improve internet affordability and competition by giving new market entrants an opportunity to piggyback on existing networks.
The government previously required three carriers – BCE Inc.’s Bell Canada, Telus and SaskTel – to give competitors access to their fibre networks at regulator-set rates.
The latest question under review was whether, in addition to smaller regional companies, the country’s three largest carriers would be allowed to take advantage of the mandated rates as well.
The Canadian Radio-television and Telecommunications Commission on Friday reaffirmed its 2024 decision that Telus, Bell and Rogers could expand into each others’ fibre networks where they don’t already have their own infrastructure.
This means that Telus, whose network is primarily in the West, can expand over Bell’s networks in the East, and vice versa. Rogers has cable infrastructure spanning the country, so it is excluded from accessing the mandated rates near-nationally. The company has some fibre, but it is not yet being required to grant competitors access to it.
The CRTC said several thousand Canadian households have already purchased new internet plans offered by dozens of providers using the access enabled by the framework.
“Changing course now would reverse the benefits of this increased competition and would prevent more Canadians from having new choices of ISPs in the future,” the CRTC said.
The policy debate created a rare industry split that saw nearly every one of the country’s largest telecoms in agreement and only one major carrier, Telus, split from the rest. The country’s biggest telecoms have been facing pressure because of high debt loads and the mature market’s overall slowdown.
In CRTC proceedings, Telus had argued it should be allowed to resell on SaskTel’s and Bell’s networks, saying that where an incumbent operates outside of its network area, it is acting as a new competitor to the potential benefit of consumers.
The Eastern Canadian market that Telus will now have increased access to is about three times larger than its own Western Canadian footprint, Royal Bank of Canada analyst Drew McReynolds said in an investor note Friday.
In a statement Friday morning, Telus said the decision reinforces the independence of expert regulators.
The Competition Bureau also supported incumbents accessing their competitors’ networks, saying the benefits outweighed the risks.
Source: https://www.theglobeandmail.com/business/article-crtc-telecoms-resell-internet-services/
