Federal Industry Minister Mélanie Joly is facing strong backlash from telecom executives after deciding to uphold the CRTC’s wholesale internet access rules, a move critics say will harm competition and investment.
The decision allows Canada’s largest telecom companies to resell fibre optic access to internet service providers over their own and smaller players’ networks. The CRTC says this will lower consumer costs, but some in the industry dispute that claim.
“I am in shock. In shock. I am profoundly disappointed,” said Cogeco CEO Frédéric Perron in an interview with the National Post. He called it a “damaging, dangerous decision” and said, “We had high hopes that this new government would make better decisions for business and the Canadian economy. And what we saw last week, by the minister’s decision, is more reminiscent of old Trudeau era, superficial policies.”
Cogeco and Perron stated last week that Ottawa’s decision is “unacceptable”, saying it the wholesale internet regime is “broken”. Now it appears Cogeco’s PR campaign against the federal government is ramping up.
Perron warned the policy could lead to “a re-monopolization of telecoms in Canada,” adding: “Consumers won’t think it’s okay, and we’ll fight to make sure it doesn’t happen.”
Joly defended the decision in a post on X, writing: “By immediately increasing competition and consumer choice, the CRTC’s decision aims to reduce the cost of high-speed Internet for Canadians and will contribute toward our broader mandate to bring down costs across the board.”
Cogeco and Eastlink have appealed to the Federal Court of Appeal to overturn the decision. Eastlink has already suspended some planned network upgrades in smaller communities.
Rogers and Bell have similarly blasted Ottawa’s decision to side with the CRTC, while Telus remains the outlier from the ‘Big 3’, applauding the decision.
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Isn't this hilarious on Cogeco's part. They are crying the blues about having to share their network with others for internet but guess how they are offering their new mobile service? By using Telus' network! Double standard here, no?