With the aim of promoting competition and reducing prices for consumers, the Canadian Radio-Television and Telecommunications Commission (CRTC) introduced last year lower rates for wholesale access to high-speed networks. The federal government expressed its concerns that such a decision might undermine investments in Canada’s communications networks, especially in rural and remote areas.
However, the government decided not to intervene given that the CRTC is currently reviewing its own decision about wholesale internet rates. “We encourage all parties to cooperate in the CRTC's ongoing review of the rates decision to support a timely conclusion that will provide more certainty for all involved parties,” said Navdeep Bains, minister for innovation, science and industry.
Large phone and cable companies have denounced the decision by the CRTC issued on August 15th, 2019 and have considered rates far too low. They consider that the CRTC overstepped its authority by cutting wholesale capacity rates by up to 43% and access rates by up to 77%. However, their wholesale customers believe that the CRTC’s decision will end years of overcharging by large carriers.
Bell issued a statement saying, “We trust the CRTC's review will reflect the government's objective to drive network investment, especially in rural and remote regions, with wholesale rates that are fair and reasonable. The original CRTC decision actually set wholesale rates below cost, which would certainly have impacted future investment by facilities-based carriers like Bell.”
A statement from Rogers Communications said, in part, “The CRTC rates do not reflect the true cost of building and expanding Canada's world-class broadband networks and will impact network investments, especially in rural and remote areas where costs are significantly higher.”
Minister Bains concluded, “The COVID-19 pandemic has only reinforced the importance of connectivity. The investments our government is making in high-quality networks, particularly in rural and remote communities, are key to ensuring equitable digital access for all Canadians. Equitable access also means that it is available at fair prices that Canadians can afford.”
