Rogers Blames CRTC for $140 Million Impact on Q3 Due to Wholesale Rates Decision
Earlier this morning, Bell announced it would be scaling back its wireless to the home broadband Internet investments by 20%, as a result of the CRTC’s decision on lowering wholesale rates, made to foster competition.
Now, Rogers has come out saying it is “very disappointed by the CRTC’s decision to dramatically reduce the aggregated wholesale rates that third-party Internet resellers pay to access broadband networks in Canada.”
According to Rogers, “the final rates do not recognize the true cost of building and expanding Canada’s world-class broadband networks and will certainly impact Rogers future network investments.”
Rogers says because of the CRTC, its current third quarter will see a $140 million impact, “to account for the retroactive impact of the lower rates,” which the CRTC says will be from 2016.
Rogers is saying its future investments “in rural and remote communities,” will undergo a review, suggesting the CRTC’s decision means fewer communities will get broadband Internet.
First Bell, and now Rogers comes out swinging in responding to the CRTC’s broadband wholesale rates decision.