TekSavvy and Independent ISPs Urge CRTC to Fix Wholesale Fibre Rates

TekSavvy and other independent internet service providers have jointly asked the Canadian Radio-television and Telecommunications Commission to fix wholesale fibre internet prices that they say make competition impossible.

The coalition submitted an application to the CRTC asking it to review Telecom Order 2026-77. Under the current rules, the rates independent providers must pay big telecom companies to access fibre lines are actually higher than the retail prices those big carriers charge their own customers.

Because of this gap, smaller internet providers must either sell their internet services at a loss or charge customers higher prices than the major telecom giants, leaving Canadians with fewer affordable choices.

To address the problem, the coalition is asking the regulator to make three changes. First, it wants the CRTC to eliminate a costing factor that artificially raised wholesale rates by 25% to 30%. Second, the group wants the profit markup on wholesale fibre reduced from 30% to 15% to reflect lower operational costs. Finally, the providers are asking for technical corrections to speed descriptions in the decision.

“Canadians were promised greater competition for fibre internet services, but these rates make competition impossible,” said Andy Kaplan-Myrth, TekSavvy’s Vice President of Regulatory and Carrier Affairs, in a statement on Thursday.

The coalition includes several competitive providers and industry groups from across the country, including TekSavvy Solutions Inc., BC Broadband Association (BCBA), Canada-Wide Internet Service Providers Association (CanWISP), Fibernetics Inc., ISP Telecom Inc., National Capital FreeNet Inc., Novus Entertainment Inc. and Purple Cow Internet Inc.