TekSavvy Fires Back at CRTC Over Internet Rates: This Isn’t Competition

Independent internet service provider TekSavvy has expressed disappointment over the Canadian Radio-television and Telecommunications Commission’s (CRTC) new interim wholesale fibre rates, stating they fall short of expectations.

The company’s Vice-President of Insight & Engagement, Peter Nowak, shared a company statement on Tuesday.

“TekSavvy has been waiting a long time for realistic wholesale fibre rates that will allow us to offer more affordable services to cash-strapped Canadians who pay some of the highest broadband prices in the world, but this decision does not deliver them” said TekSavvy.

The company emphasized that the new rates remain “considerably higher” than what major telecom providers are already offering customers at retail. TekSavvy argued that these higher rates hinder competition and prevent independent providers from offering more affordable services to Canadians, who currently face some of the highest internet prices in the world.

“These rates remain considerably higher than what some of the big telcos are regularly offering customers at retail. They need to be lower to reflect market realities and to realistically enable competition,” said TekSavvy, which asked for fair rates earlier this year at a CRTC hearing.

Looking at the prices of the interim rates from Telus, Bell and SaskTel, they are pretty darn expensive. What is the CRTC thinking (or smoking)? The non-stop platitudes of a promise of cheaper and more affordable internet remains an elusive dream.

“This is not how you spur more competition in the market,” TekSavvy said, adding that it hopes the CRTC will soon release final fibre rates that are “significantly lower” than the interim figures.

We already saw Quebecor’s Freedom Mobile reply to the CRTC’s interim wholesale rates, which are the prices smaller ISPs pay to resell incumbent internet to customers. Freedom Mobile said the new rates means it won’t be launching internet on networks from Telus and Bell.

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sukisszoze
sukisszoze
1 year ago

Unless the rates come down substantially based on volume, how can wholesale rates be higher than what consumers are paying?

😄😆
😄😆
Reply to  sukisszoze
1 year ago

What did AI tell you?

Trevor Bates
Trevor Bates
Reply to  sukisszoze
1 year ago

Yep, that's the problem. Wholesale might be able to do something on the high end but the high per customer access rate kills any chance on the low end. So you won't get any cheaper plans. If we're lucky you might get a cheaper high bandwidth cost, but even that seems unlikely

JTF1
JTF1
1 year ago

CRTC is just like Trump now. They just declare that prices are coming down and expect people to believe it even though it's a complete lie.

😄😆
😄😆
Reply to  JTF1
1 year ago

Now? Did you get a brain transplant recently? It's always been like Trump. But there are a lot of Trump supporters here. You've been warned.

John Doe
John Doe
Reply to  JTF1
1 year ago

All of Trump's followers couldn't tell the difference between his lies and the truth cause they are what we call .. idiots ..

Johnny Levy
Johnny Levy
Reply to  John Doe
1 year ago

You can always identify the people with the lowest IQ in Canada. They use American political figures as boogey men without actually knowing anything about Canadian issues.

yeah John. You ain't exactly a hallmark of brilliance.

😄😆
😄😆
1 year ago

Don't be surprised if TekSavvy gives up the fight that it knows it can't win especially with fewer consumers agreeing with them given how even the middle class are becoming very privileged.

boombatts
boombatts
Reply to  😄😆
1 year ago

Wtf are you talking about? The middle class is becoming privileged? The middle class has been under attack financially for 8 years.

Adam Gallant
Adam Gallant
1 year ago

Koodos to teksavvy for fighting. But I'm not sure this is the whole story: I've been getting Internet from Lightspeed internet for 7 years. Their plans are almost half the price of teksavvy and the cable Internet I have runs off Shaw.

Trevor Bates
Trevor Bates
Reply to  Adam Gallant
1 year ago

Wholesale access to cable networks exists because of the crtc and lobbying by groups like teksavvy. This current ruling is on FTTP. So if we want light speed or teksavvy to exist years from now then we need better wholesale rates

mindom2004
mindom2004
1 year ago

The CRTC should be disbanded in dishonor!!! For decades they have promised fair bcompetition and cheaper raytes BUT all we'vee received are monopolies and when another company using the main players lines comes about a surcharge is added making them just as costly!!! The BEST way would be opening the market to US and EU companies. Prices would drop at least 50% overnight!!! CRTC are basing theie whole protocols onCanadian content. Folks, let's be realistic, IF the content is good enough it will be on the world stage, if not it will be subjected to time slots in the middle of the night! We are SUBSIDIZING media for Canadian content at the greatest cost inn the entire world! Its pathetic and criminal as they are stealing our money.

Trevor Bates
Trevor Bates
Reply to  mindom2004
1 year ago

Your rant is on the wrong ruling. This is about wholesale access to incumbent ISP fiber to the premises networks. It has nothing to do with media programming

mindom2004
mindom2004
1 year ago

The CRTC should be disbanded in dishonor!!! For decades they have promised fair bcompetition and cheaper raytes BUT all we'vee received are monopolies and when another company using the main players lines comes about a surcharge is added making them just as costly!!! The BEST way would be opening the market to US and EU companies. Prices would drop at least 50% overnight!!! CRTC are basing theie whole protocols onCanadian content. Folks, let's be realistic, IF the content is good enough it will be on the world stage, if not it will be subjected to time slots in the middle of the night! We are SUBSIDIZING media for Canadian content at the greatest cost inn the entire world! Its pathetic and criminal as they are stealing our money.

Johnny Levy
Johnny Levy
1 year ago

The CRTC only serves the needs of the extremely wealthy.

they don't give a damn about regular Canadians or fair and rational decisions.

just like the PMO, they are ALL Inept corrupt and staffed by fools.

Dave Currie
Dave Currie
1 year ago

It is time that the Federal Government got rid of ALL CRTC management and policy makers that WERE PREVIOUSLY EMPLOYED IN THE TELCOM INDUSTRY and replace them with folk who have absolutely no vested interest in the profitability of the telecom giants in Canada! There is no way that a former Telecom Management Person can be objective as a policy or decision maker at the CRTC. Canada needs to open up competition from U.S. providers and force the Canadian Telecom Giants to fend for themselves in a truly competitive marketplace.

Zenzing
Zenzing
1 year ago

Yes Canada you win Oligarchy capital of the world!!! Embarrassing and should be criminal!!!!

Trevor Bates
Trevor Bates
1 year ago

We might get lucky when disaggregated rates come out but not holding my breath. Also, these are interim rates

North Pete
North Pete
1 year ago

Telus shows up at my door offering internet because "Cogeco holds the monopoly in my area"
…. LSS; Telus was just reselling Cogeco…

whiskyisgood
whiskyisgood
1 year ago

They should make the investment in infrastructure rather than expecting someone else to do it. Free riders

Kyle Few
Kyle Few
1 year ago

Boo hoo Teksavvy and every other wholesale ISP. Want to help foot the bill on billions of dollars in infrastructure spending to make that network usable? No? Then shut up and pay the rates being dispensed. Those rates are meant to push those companies spending the capital to keep building the infrastructure you'd like a free ride on.

dwild
dwild
Reply to  Kyle Few
1 year ago

The resell rates are higher than what Bell is selling to the consummer… Shouldn't the minimum be at least that? Bell offered me 20$ a month for the access to the fiber last month through, and it wasn't just for the last mile. That means that even at that price they make a profit (and no I'm not a big client, I pay them 25$ a month).

Bell is making MORE than enough charging so much for consummer access. Stop defending them like that, it's shameful. At the bare minimum be logical in your defense and agree that the maximum they should resell the last mile for is the retail price.

Banzai Kitty
Banzai Kitty
Reply to  Kyle Few
1 year ago

Sure, if you ignore all the taxpayer funded hand outs they received to build the infrastructure.

$500m in 2022
$71m in 2023 – Ontario
$135m in 2022 – Newfoundland

and these are just individual projects and a 2min Google search. The list goes on and on, back to the same deal tgey got to install phone lines – generously assisted by the public.

Not to mention the telecoms throw a tantrum every time something doesn't go their way, threatening to end infrastructure investment because it'll cut into their endless record profit cycle.

Tee Cee
Tee Cee
1 year ago

But leeching from other networks because teksavvy cant build a national network is perfectly fine?

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