Just like Teksavvy and Start.ca, smaller internet service provider (ISP) Distributel has announced a change to its home internet plans, thanks to the CRTC’s recent decision to rollback wholesale internet rates to 2016.
Smaller ISPs buy internet access from major ISPs at wholesale rates and resell services, usually at competitive or lower rates. The CRTC ruled rates were too high and reversed them back to the spring of 2016, a retroactive change, made to spur competition and lower prices in the industry.
Toronto-based Distributel says it has “initiated efforts to substantially increase home Internet speeds for the majority of its customers at no extra cost,”
The CRTC wholesale internet rate change means the company will also “launch competitive new retail pricing for bundled and stand-alone products and services.”
“Distributel is excited to offer Canadian consumers across the country greater value and increased Internet speeds,” said Matt Stein, CEO, Distributel Communications Ltd., in a press release. “We are moving quickly to pass along the benefits of the CRTC’s ruling to our customers because it’s the right thing to do.”
The company notes it has already connected six communities in Northern Quebec with speeds up to 1Gbps, and now four more are set to immediately gain service as well: Chibougamau, Chapais, Matagami, and Lebel-sur-Quévillon.
“We are continuing to invest, innovate and enhance our services to reward existing customers and win new ones,” added Stein. “As a company, we are extremely proud to be doing our part to provide Canadians in rural and remote areas with the access to broadband Internet, next generation TV, and home phone services at the affordable prices they deserve.”
The CRTC lowered wholesale internet rates back to 2016 this fall, a retroactive change affecting big telecom companies, with the latter group being mandated to repay overcharged rates of $225 million. These companies including the likes of Rogers, Bell, Cogego and Shaw for example, filed a motion with the Federal Court of Appeal last week.
Consumer advocacy group, OpenMedia, applauded the move, saying “Props to smaller ISPs @TekSavvyBuzz @startca and @Distributel for passing down the benefits of @CRTCeng’s decision on wholesale broadband Internet rates to their customers in the forms of higher speeds, lower prices and a commitment to rural communities.”