TekSavvy, Distributel, and other independent internet service providers (ISPs) are criticizing a Thursday decision by the federal Cabinet to endorse the higher wholesale internet prices set by the Canadian Radio-television and Telecommunications Commission (CRTC) last year.
The federal Cabinet has proposed a new policy direction designed that, if adopted, may prompt the CRTC to promote competition in the long term. In doing so, however, Ottawa rejected appeals from TekSavvy and other independent ISPs to immediately lower wholesale internet rates.
ISPs say the decision amounts to “a big loss for consumers and competition in general” as it will discourage competition and lead to higher internet rates for the end user in the short term.
“The federal government says its proposed policy direction is a win for consumers and smaller ISPs, but it is not,” said TekSavvy spokesperson Peter Nowak.
“Instead of immediately lowering prices by overturning a bad CRTC decision, it is asking us to hold out hope that the CRTC will do better in the future. This lack of action and faith-based policy approach is why competitors will continue to exit the market and Canadians will continue to pay some of the highest telecom prices in the world.”
Distributel found the Cabinet’s decision encouraging but ultimately lacking. “The company is disappointed that the government chose not to act on appeals that would have immediately lowered internet rates for all Canadians,” said Distributel in a statement to iPhone in Canada.
The independent ISP added that in the short term, “the decision to keep rates high only ensures that Canadians will continue to overpay for internet services.”
TekSavvy argued that Ottawa’s decision also promotes misconduct by the head of the CRTC, Ian Scott, who the company has registered complaints against for violating conflict of interest laws.
TekSavvy has alleged that Scott broke key federal rules when he held several meetings with telecom lobbyists and executives from telecom giants. TekSavvy’s argument primarily questions Scott’s December 2019 meeting at an Ottawa pub with Mirko Bibic, then-COO, now-CEO of Bell.
The pub meeting in question took place just one week after the CRTC opened an active file to hear Bell’s application to reverse the Commission’s 2019 decision to lower wholesale internet rates paid to Canada’s Big 3 by smaller ISPs.
Last year, the CRTC approved Bell’s request and revert internet rates back to the higher 2016 levels, resulting in less competition and increased internet prices for both wholesale buyers like TekSavvy and the end user.
TekSavvy was quick to appeal the decision, petitioning the federal government to remove Scott while citing the CRTC chair’s meeting with Bibic as evidence of ethical violations at best, and bias at worst. TekSavvy launched a complaint against Scott with the federal Integrity Commissioner earlier this year in March.
In February, Scott claimed that “no rule was ever broken” during his pub meeting with Bibic, which he said was just “beer with someone I have known for many years.” Scott is set to be replaced in September as his five-year term as CRTC chair comes to an end.
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Bad for consumers. Good for the big telcos. Probably best for the Trudeau family and Liberal party bank accounts.
We probably would have way much worse of a scenario if it was the Conservatives too if not the same.
Anything’s possible but actual history would suggest otherwise.
Under the previous conservative government, CRTC pushed for more access to incumbent networks for small 3rd party resellers, brought in capacity based wholesale rates to allow the resellers more flexibility and reduced regulated wholesale rates repeatedly.
It would be difficult to honestly think the cons could do worse than that libs without ignoring their actual policies and actions.
And that statement is based on…? Liberal talking points?
Look back 10 years and see how things have changed for the better with the new competition in the sector.
You probably forgot bandwidth caps, artificial speed limits, access fees, account maintenance fees, overages, etc.
We’re going back on most of those now.
I’ve said this before and will say it again: I’ll never vote Conservative, but will admit that the Cons had a more consumer-favoured policy for fixed broadband and wireless than any other party. Every single Canadian was paying less for telco services because of the framework for pricing and access that the Conservatives put together. Turdeau and his corrupt chumps don’t even have the skills to put something to that magnitude together for Canada, let alone the willingness to do so.
I don’t see how this can possibly work. Asking the big telcos, who have made huge investments in network expansion, to wholesale bandwidth to the MVNOs so they can resale it to subscribers at a lower price than the telcos makes no business sense. The government has to come with a new scheme to promote competition and fairness in the market. The current schema will always have the small ISPs at risk of failing.
Every other week here there is another announcement of some level of government investing hundreds of millions to expand network coverage for these companies, usually into rural areas and as a government guaranteed monopoly.
Expecting them to wholesale at reasonable rates in their monopoly areas is the least one can ask them to reciprocate.
No one is asking them to wholesale at a loss. They’re being asked to wholesale as at rate that doesn’t automatically force resellers to set prices higher than the monopolies’ retail rates.
Why do we have only one other competitor (Freedom) to Robellus and not more? Why are our internet access prices are going through the roof. You can blame it on the government for doing the spectrum auction and not doing it’s due diligence. ☹☹☹
I am not a fan of big corps but how long has TekSavvy been around? I am sure it’s been over 20 years. I mean if they had build their own network just a few blocks at a time slowly, they would have a few cities of infrastructure by themselves already. Why didn’t they do that? Call me old fashioned but never depend on others to put food on your table.
You forgot the premise of infrastructure sharing set forth by”useful” CRTC back in the day: the government gave incentives (huge $$$ in spectrum and tax breaks) to help build the infrastructure. It’s only fair they are allowed and actually duty-bound to make sure that infrastructure is shared.
You don’t see people asking TPIA and MVNO to build their own parallel networks in US and Europe.
They are currently in the process of doing that. With a fiber network.
If they’d don’t that 20 years ago they’d likely have an obsolete coaxial network right now.
They don’t have the money that big Telecom have duh
As always, it appears that the primary mission of bureaucracy is to perpetuate itself … and nepotism is the rule of the day. Expect more of the same, every day the Liberals remain in power.
It’s not just a Liberal thing but government in its entirety.
A government “in general” thing – yes, absolutely. But Liberals openly campaign to increase the size, scope and intrusiveness of government.
^ This
We used to ignore governments (Conservative and Liberal alike) until there was a new tax or an unpopular measure…we simply let them do their job, good or bad and they would mostly stay out of our lives.
The last 7 years have brought a ginormous propaganda machine (bought with taxpayers money going to MSM) that enabled and supported a level of intrusion unimaginable a short time ago.
Unfortunately, Canadians have surrendered their freedoms in exchange for the proverbial 30 silver coins and I’m afraid there is no going back.
“Nanny state” used to be a pejorative. It was inherently understood that it was a bad thing to have the government making your decisions from cradle to grave. Now, it’s demanded.
Trudeau’s father was famous for saying government should stay out of the bedrooms of Canadians. The son wants government in all the rooms and in all parts of everyday life.
Once again we got robbed by our own gov…what’s new?