Implicitly acknowledging that its recent decisions have not fostered competition between internet providers, the Canadian Radio-television and Telecommunications Commission (CRTC) gives a first flower to independent providers: an “immediate 10% reduction on certain wholesale rates” .
No details have yet been provided on the rates that will benefit from this measure. Wholesale rates, those paid by independent providers to access the networks of larger companies such as Bell, Videotron, Rogers and Telus, will be reassessed “more generally” during an upcoming review.
“The CRTC recognizes that its current approach does not meet its objective of encouraging greater competition in the market for internet services”, can we read in the press release published on Wednesday.
Access to fiber
This decision goes hand in hand with a consultation on this industry “in order to increase competition, create more choice and reduce prices”.
“We look forward to hearing from everyone who will participate in our public proceeding to strike the right balance between lowering prices and continuing to invest in reliable, high-quality networks,” the new chair of the board said in a statement. CRTC, Vicky Eatrides.
The federal agency will focus on another area of concern often raised by independent providers, access to fiber optic networks to the home. This remains at the discretion of the major suppliers.
“The CRTC will accept submissions until April 24, 2023 with respect to the imposition of fibre-to-the-home network access. »
On the side of the independent suppliers, we are delighted with this decision of the CRTC. “We are very pleased that the CRTC is taking swift action to address the broken competitive landscape,” said to The Press Geoff White, managing director and legal services at Canadian Competitive Network Operators (ORCC), which brings together 21 small telecommunications providers.
“This is a watershed year for competition in home internet, and we are pleased that the CRTC and its new chair realize the importance of this issue,” he adds.
Prices too high
The internet service industry has been in turmoil since a controversial CRTC decision in May 2021 that reversed a major wholesale rate cut previously enacted in 2019. At least six major independent providers, including EBOX, Distributel, VMedia and Oxio, have since been taken over by larger companies.
In May 2022, the Minister of Innovation, Science and Industry François-Philippe Champagne announced a first change of tone with instructions to the CRTC to “implement new rules to promote competition and improve services to consumers”.
In interview with The Press last January, CRTC President Vicky Eatrides acknowledged that the prices paid by Canadians for their internet service were too high. “It is clear that our policy does not have the effect we were looking for on prices. »