Bell recently announced a $1 billion reduction in its investment for high-speed internet networks over the next two years in Ontario and Quebec, a move following the CRTC’s mandate to allow internet service providers wholesale access to its network.
This decision comes after a $100 million decrease in its capital expenditure budget last year, also involving Telus, in anticipation of the regulatory ruling.
Windsor West Member of Parliament, Brian Masse, slammed Bell’s decision labeling it as “blackmail,” reports Windsor News Today. Masse criticized Bell for cutting internet infrastructure investments as a punitive response to the CRTC’s move to introduce competition in the provinces.
“Bell is cutting investment in internet infrastructure as a punishment to Canadians for the CRTC finally allowing for some competition in two provinces,” Masse stated, describing the announcement as “outrageous.”
Masse accused Bell of long-term consumer price gouging and called on the federal government to intervene. He advocated for the restoration of price regulation and mandated telecom infrastructure investments to foster a competitive marketplace. “Our country needs to restore price regulation, mandated telecom infrastructure investments, and a truly competitive marketplace,” Masse urged, citing examples of other countries with more affordable prices and greater consumer choice.
The small Internet service provider market has seen a 40% growth since 2020. The CRTC hopes its decision will help stabilize the waning telecom competition. One of the last few independent ISPs, Teksavvy, welcomed the CRTC’s decision but raised concerns about the wholesale rates set by the CRTC, which they claim are higher than the retail prices charged by Bell and Telus to their own customers.
Teksavvy also criticized the CRTC’s restriction of access to Ontario and Quebec, arguing that other regions are equally deserving. Bell’s fibre network currently reaches over 7 million homes and businesses, with plans to expand to 9 million by the end of 2025. However, the CRTC ruling did not mandate Bell and Telus to open access in Western Canada, a point Bell highlighted. “If the intent of the decision is to benefit consumers, then it is arbitrary and capricious to leave Western Canadian consumers behind,” the company stated.
Bell CEO Mirko Bibic defended the company’s actions last week, stating that Bell had increased its capital expenditures to historic levels during the COVID-19 pandemic to provide reliable connectivity to Canadians.
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Quebec and Ontario have far more internet infrastructure than any other province. If this is invested elsewhere in Canada this is hardly blackmail.
The west often gets lost in the shuffle. Maybe this is a wake up call.
Glad that Bell is being called out for this blackmailing action.
Just nationalize it already!
Good on the NDP having one of its MPs call this out.
If there was real competition, this “blackmailing” wouldn’t be possible.
While obviously they are complaining about MVNOs, not real competitors… it’s pretty idiotic for Bell to draw MORE attention to their market power.
The whole telecommunication regulation system is screwed up. Some telecommunication services are regulated by Tariffs approved by the CRTC. Tariffs that are WRITTEN by the Telco – not the CRTC, Not the users! Some telecom service rates can now be increased by the telco writing a letter to the CRTC. Up to 10% per year without ANY justification. This is so wrong! And then the government appoints the head of the CRTC from people who have been in charge of the major telcos. There ain’t no way these CRTC leaders are concerned about the citizens in Canada – they will take care of their friends and former employers first. And if you think the telecommunication rules are bad just wait until the CRTC gets their hooks into the internet. We are all going to have Canadian Content jammed down our throat thanks to the new rules. Get yourself a VPN and look like you are in another country to get around these cock-a-mammy rules.