Bell has formally requested the federal government step in and overturn a decision by the CRTC that mandates the telecom giant to offer its fibre network in Ontario and Quebec to independent competitors at regulated rates.
The petition, filed last Friday, challenges the CRTC’s interim decision, which also affects Telus, arguing it could deter network investment and negatively impact consumers and businesses, reported the Globe and Mail on Monday.
Back in November, the CRTC directed Bell and Telus, both of which have extensive fibre-to-the-home infrastructure, to temporarily provide competitors in Ontario and Quebec with more affordable access to their networks. Soon after the CRTC decision, Bell appealed the mandate in the Federal Court of Appeal. The company alleged the CRTC had made a legal error and went beyond its jurisdiction.
The CRTC’s decision came in response to a marked decrease in competition within the internet market of Ontario and Quebec, where the presence of independent wholesale-based competitors has fallen by 47% from the end of 2018 to 2022. The problem? Big telecoms were gobbling up wholesale-based competitors, reducing competition.
Bell has warned that the CRTC’s ruling would lead to a reduction in its network investment by over $1 billion in 2024-25. NDP MP Brian Masse has called out Bell in the past, alleging the telco was “blackmailing” Canadians.
“When Bell invests in a community, customers benefit from better service, more value, state-of-the-art reliable connectivity, and competitive prices. By contrast, resellers make little to no investment in network infrastructure,” said Bell spokesperson Luc Levasseur to the Globe.
Bell’s petition urges the cabinet to revoke the CRTC’s decision and go back to the previous wholesale regime. Since 2015, wholesale-based competitors have accessed fibre-to-the-home infrastructure through a disaggregated model, although many have argued that the rates set by the CRTC were prohibitively high.
The recent CRTC ruling allows for aggregated access, combining both access to individual premises and the broader transport routes, aiming to strike a balance between competitive access and the incentive for further network development.
We previously told you Telus reached out to electric vehicle groups, in an effort to try to gain support against the CRTC’s ruling, claiming the new mandate could affect the rollout of EV charging networks.
