Independent internet service provider (ISP) TekSavvy has voiced concerns over the Canadian Radio-television and Telecommunications Commission’s (CRTC) recent interim wholesale internet decision made yesterday.
The ruling mandates Bell and Telus to provide wholesale access to their fibre networks in Ontario and Quebec to smaller ISPs within six months.
Although TekSavvy sees the decision as a step towards offering more competitive fibre internet services to consumers, the company has highlighted significant issues with the CRTC’s current stance.
The primary point of contention is the wholesale rates set by the CRTC, which TekSavvy argues are higher than the retail prices Bell and Telus charge their customers. This pricing structure could reduce competition and prevent consumers from seeing any substantial price relief in their telecom services.
“The large telcos are already selling fibre internet below the CRTC’s new wholesale rates. As a result, those rates make competition virtually impossible,” stated Andy Kaplan-Myrth, TekSavvy’s Vice President of Regulatory and Carrier Affairs on Tuesday. “As it stands, consumers will not benefit from meaningful price relief, despite the large telcos’ decade-long monopoly and Canada’s ongoing cost-of-living crisis.”
Bell was given a built-in, guaranteed profit margin of 30% from the #CRTC in the decision granting improved access to wholesale FTTP. Thirty per cent. pic.twitter.com/0N7GgVuYl7
— bryson (@Bryson_M) November 7, 2023
Furthermore, TekSavvy points out that the decision is limited to Ontario and Quebec, excluding consumers in other regions from the benefits of increased competition. “Consumers in other regions are no less deserving of price relief and competitive choices than consumers in Ontario and Quebec,” said Peter Nowak, TekSavvy’s Vice President of Insight and Engagement. “We hope that the CRTC will act quickly to rectify the rates and expand this interim ruling to all regions.”
TekSavvy remains committed to its role as Canada’s largest independent telecom service provider and is not currently for sale, dispelling previous reports. The company is eager to collaborate with the CRTC to revise the decision and rates, aiming to provide Canadian consumers with much-needed price relief in 2024.
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Expect BELL and TELUS to throw tantrum once CRTC does something about.
Negative as that may be, what is more irritating is, as always, Ontario and Quebec. Feds and CRTC are clearly in each other’s pockets. Bad.
You mean they both are in Bhellus’ pocket.
the crtc is just another arm of the Liberal government. When the Conservatives were in charge, the crtc was changed and going in the correct direction with more options for citizens.
Once again, we need to remove the Liberals. They are not worth whatever they co.
That’s nonsense. It was just as useless under the Conservatives as the Liberals. We all like to play pretend that the Cons and Libs have different corporate overlords but they its just an illusion.
Nope, CRTC has always been trash, mainly due to government on both sides of the political spectrum. It’s all about how much money changes hands.
Anyone who thinks the CRTC went anywhere in a meaningful way in the last 10 to 15 years is dillusional. I don’t care who is in power, at the end of the day it’s all about their pockets, not ours.
I am confused…CRTC demands Bell & Telus to provide wholesale access to their fibre network only to Ontario and Quebec (what about the rest of Canada? Don’t we deserve at least to have the option for fast internet???) and to add it up, Bell and Telus can increase 30% on the wholesale rate making even higher than how much they charge now, that is already high??? What is the logic of this demand? Bell in return of this demand is cutting off budget to expend the fibre network. I guess Bell’s reason is focus on the possibility of reduction of profit of 0.0001% by giving a little to local consumers (like the Covid big $$$ given by the Feds and not requested to pay back, like many workers individuals were laidoff had no.option but to collect CERB then went back to work had to repay most if not all the “assistance ” imposed by the Feds). Seriously, CRTC shows to be more interest to destroy small providers than to help their existence!