Nova Scotia-based Eastlink says it is “deeply disappointed” with the federal government’s move to let the biggest telecom companies use the networks of smaller, regional providers.
In a statement Thursday, Lee Bragg, Executive Vice Chair of Eastlink, warned the decision will hurt long-term competition.
“This will have negative and meaningful impacts on competition, counter to the federal government’s own policy to build a strong, connected Canadian economy enabled by facilities-based investment while encouraging real competition that depends on sustainable networks to create more competition,” Bragg said. “We had hoped that this government, unlike the previous government, would take a more investment friendly approach to decision making.”
Bragg said Ottawa is showing “disregard for the smaller regional operators who have brought healthy competition to the marketplace and the crucial importance of long-term investments in telecommunications.”
The Halifax-based company will now pause network upgrades in many small communities. “I have instructed our team to take the next 30 days to identify communities that will become unprofitable and therefore require shutdown as a result of this decision,” Bragg said.
Eastlink is also urging residents to push back. “We encourage consumers to reach out to their local MP to voice concerns about this decision and the unintended consequences of losing, not gaining, sustainable competition,” he said.
The Canadian Telecommunications Association, which represents the industry including Eastlink (does not include Telus), said on Thursday it is “extremely disappointed that the Government of Canada has chosen not to alter the Canadian Radio-television and Telecommunications Commission’s (CRTC) wholesale internet access framework, despite widespread opposition from across the industry, including smaller independent network operators and wholesale providers.”
“This decision undermines the very goals it claims to support. It discourages investment, weakens competition, and ultimately harms Canadian consumers,” said the CTA.
The CRTC’s August 2024 ruling, upheld by the new Carney government this week, is shaking up the telecom scene by forcing Bell, SaskTel, and Telus to share their fibre networks with competitors by, aiming to boost affordability and choice. Rogers is opposed to the ruling.
Telus is all in, investing $2 billion to expand into Ontario and Quebec using Bell’s infrastructure. Bell’s fighting back, cutting $500 million in 2025 investments and slowing fibre rollout, while SaskTel faces similar pressures in Saskatchewan.
The CRTC’s five-year exemption for newly built fibre networks aims to encourage investment by allowing Bell, SaskTel, and Telus to keep these networks exclusive for five years, but it risks sidelining smaller ISPs who rely on wholesale access to compete.
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Eastlink has been a horrible steward of the Internet and communications infrastructure in my area. We finally have a self-funded startup that is running their own fiber and offering modern services. I have no issues with Eastlink disappearing from the face of the earth.
I only have eastlink mobile service in my area and it's fine because I'm getting a substantial discount due to a rollover shared data plan where my plan holds all the data keeping the other lines cheap.
Maybe if so much gouging hadn't happened with the incumbents then things might be better
This is clearly going to completely stall out progress of expanding fiber to small town rural areas. No company wants to be the one to flip the bill for installing new infrastructure when other companies can piggy back off those installed lines at no up front costs. Clearly there are some businesses lining the pockets of certain politicians.