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Major Telcos Win Temporary Stay in Court vs CRTC Wholesale Rates Decision

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A group of major Internet players in Canada have won a court ruling against the CRTC and the latter’s August decision to retroactively lower wholesale Internet rates, a move to increase competition.

The CRTC last month lowered wholesale Internet rates big providers could charge smaller independent resellers, retroactive to 2016. Major telcos argued the move would result in hundreds of millions of dollars affecting the bottom line. Rogers, Bell, Shaw, Videotron, Cogeco and Eastlink’s parent company shortly after filed an appeal with the Federal Court of Appeal, made earlier this month.



Now, a decision has been made by the Federal Court of Appeal, favouring the big telecoms, as a temporary stay has been granted. According to CBC News:

Federal court Justice Yves de Montigny said in a ruling issued Friday that implementing the CRTC order “could result in a permanent market distortion which could be extremely difficult to remedy afterwards.”

“I am of the view that the balance of convenience favours the status quo until the applicants’ motion for leave to appeal and for an interlocutory stay is determined,” he added.

Since the CRTC decision, smaller ISPs have already lowered internet rates, including the likes of TekSavvy, Start.ca and Distributel.

Cellphone and internet bills have become front and centre of this fall’s federal election, and it looks to remain that way. With this court decision favouring big telcos, it’s now time to grab the popcorn to see how this plays out against the CRTC.

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