Bell’s Bid to Block Internet Competition Fails, Ottawa Deals Major Blow

The federal government has decided to keep the CRTC’s recent move to allow smaller Internet providers access to the high-speed fibre networks of our ‘Big 3’ telcos, Bell, Rogers, and Telus. The original CRTC decision aimed to make Internet services more competitive and affordable across the country.

Bell Canada recently asked the feds to reverse this decision or change the rules, arguing that it could impact their ability to expand Internet networks. However, the government declined Bell’s request and instead asked the CRTC to re-evaluate one aspect: restricting the top telecom companies (Bell, Rogers, and Telus) from accessing wholesale fibre services themselves.

Ottawa believes that letting smaller and regional providers use the larger networks will increase competition and help bring affordable, high-speed Internet to underserved areas, including rural and Indigenous communities. They see this approach as key to giving Canadians more choices for Internet and keeping prices down (in theory anyways).

Earlier this week on Wednesday, François-Philippe Champagne, Minister of Innovation, Science and Industry, announced that Bell’s petition to appeal the CRTC decision had failed, bringing a major set back for the telecom. The announcement came one day before Bell’s third quarter earnings release, which saw the company post a $1.2 billion loss.

“The Governor-in-Council is declining Bell Canada’s petition to rescind or vary the decision and instead is referring it back to the CRTC with the direction to reconsider the restriction on the three largest service providers (Bell, Rogers and Telus) from accessing wholesale fibre services,” he said.

“Wholesale access is a proven regulatory tool to encourage competition. Workable wholesale access to fibre networks is needed. The CRTC has moved quickly to improve competition through this decision and others coming out of its broad review of Internet competition,” said Champagne.

While the CRTC decision stands, recently published interim rates for wholesale internet (priced higher than retail!), meaning it’s just not worth the cost for smaller ISPs to resell internet. Quebecor said Freedom Mobile will be abandoning its plans to launch internet services on ‘Big 3’ wholesale networks.

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letsGetItRight
letsGetItRight
1 year ago

It's a scam. The govt paid AECON to lay the fiber and now the big Telcos want to keep it for themselves? And the govt is allowing this to happen?

Claude Poirier
Claude Poirier
Reply to  letsGetItRight
1 year ago

Nothing new here, the whole government is a scam.

dgmnd43
dgmnd43
Reply to  Claude Poirier
1 year ago

I assume you will pay for your own health care then and not file for CPP when you retire.

Claude Poirier
Claude Poirier
Reply to  dgmnd43
1 year ago

Weak argument, I'm still paying taxes.

Barney FifeandDrum
Barney FifeandDrum
1 year ago

Bell halted installation of Fibre infrastructure in our neighbourhood due to its dispute with the CRTC. We are left with cables sticking out of our front lawns for the foreseeable future. And no high speed internet.

Gary
Reply to  Barney FifeandDrum
1 year ago

send us an email with pics to ti**@************da.ca 🙂

Brian
Brian
Reply to  Barney FifeandDrum
1 year ago

This is just Bell being the whiny little toddlers that they are and throwing a temper tantrum because they're not getting their way.

just like you wouldn't give the whiny little toddler their way for throwing a temper tantrum don't let Bell have their way for doing the same thing.

jondoh
jondoh
Reply to  Brian
1 year ago

Bell are more like the conniving teen that’s figured out the game and how to gain leverage over the parents.

They are the ones in control and won’t give it back without a war.

Calvin Mae
Calvin Mae
1 year ago

This ruling is irrelevant. Bell is selling their fibre below “wholesale” cost already with all their brands Bell, Virgin, Distributel, Ebox.

For example for the 500 Mbps plan CRTC “wholesale” price is $68.94/mo and $246.30 installation fee. But all these Bell owned companies sell this plan for $45/mo with $0 installation fee.

How is an independent ISP supposed to compete and offer Canadians choice?

Zenzing
Zenzing
1 year ago

I'm in Montreal and when my VPN is choosing the fastest network it always chooses New York……..Oh Canada you are still the oligarchy capital!!!

Blaine Hamilton
Blaine Hamilton
1 year ago

Burn in BHell.

db
db
1 year ago

the company (Bell) post a $1.2 billion loss.
——-
Still not a reason to hand out bonuses to the brass.
From the Globe and Mail website:

BCE Inc. paid out millions of dollars in performance bonuses to its top executives after falling short of its 2023 financial targets, slowing its dividend growth and announcing thousands of job cuts.

The company paid chief executive officer Mirko Bibic an annual bonus of $2.96-million as part of a $13.43-million compensation package last year, the company disclosed in its proxy circular to shareholders. His bonus was down slightly from $3.09-million in 2022.

Brian
Brian
Reply to  db
1 year ago

Pigs at the trough.

jondoh
jondoh
1 year ago

These companies will do everything in their power to protect their executive comp first and profits second.

No matter what CRTC does they’ll counter. All losses will be passed on to consumers or lower level employees. Price increases, layoffs, deceptive sales practices, etc.

Bell, Roger’s and Telus are where they’re at because they’re good at this game. Best of luck CRTC… godspeed.

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