Bell Canada has announced substantial cuts to its fiber network expansion plans, following the recent approval of the Canadian Radio-television and Communications Commission (CRTC) on TELUS’s fiber optic service expansion to Eastern Canada.
The CRTC’s new ruling allows major telecommunication companies, including Bell Canada and TELUS, to utilize fiber optic networks under a wholesale framework.
By the end of 2025, Bell Canada will reduce its fiber buildout target from 9 million locations to 8.3 million, alongside plans of cutting over USD 1 billion capital expenditures through 2024-2025. However, BCE and Bell Canada’s President and CEO, Mirko Bibic, highlighted that the company will reconsider the buildout plan if the CRTC reverses its decision.
Bibic further emphasized the company’s disapproval of the ruling during the company’s Q4 earnings call, stating, “We’re not in the business of building fiber for TELUS’s benefit, and that is what the CRTC policy in place right now forces us to do.”
The CRTC’s New Ruling
The CRTC’s decision aims to boost competition by allowing smaller internet service providers (ISPs) to access large telecom networks at regulated rates. This move is expected to deliver more options for high-speed internet services to customers.
Addressing the CRTC’s decision, Bibic stated, “I don’t understand why a regulator would put in place policies that create disincentives to investment, puts jobs at risk, and jeopardizes the building out of critical infrastructure.”
The new ruling was released in favor of TELUS, enabling the company to expand into Ontario and Quebec by leveraging Bell’s fiber optic infrastructure—a move strongly contested by Canadian telecom companies, including Bell.
When asked if Bell is interested in reselling opportunities, Bibic responded, “We would always rather compete on the basis of networks we own. We want to build. We want to compete against other well-capitalized companies that build their own, and we’re prepared to do that here in Canada. We’re prepared to seize on the growth opportunities in the United States.”
The decision applies primarily in Ontario and Quebec but will expand nationwide starting February 13, 2025, allowing Bell access to TELUS’s fiber network in Western Canada.
