Canada’s telecommunications regulator, the CRTC, has made a significant decision that will impact the internet landscape in the country. The ruling expands access for smaller internet providers to use the fibre networks of larger companies like Bell Canada and Telus to offer their services to customers. This move is aimed at stimulating competition in the internet services market, potentially leading to better prices for consumers. However, it is still too early to determine the exact impact this decision will have on internet prices in Canada.
The decision requires large telephone companies that own fibre internet networks to provide competitors with access to their networks for a fee starting in February. This builds upon a previous ruling that temporarily required Bell and Telus to provide access to their fibre-to-the-home networks in Ontario and Quebec. The CRTC has indicated that this decision may become permanent and could be applied to other provinces as well.
Bell Canada responded to the ruling by reducing its network spending by $1.1 billion by 2025, citing that the decision diminished the business case for further investment. The CRTC clarified that the ruling only applies to existing networks, and any new fibre built by the large telecoms will be made available to competitors in five years to allow for a return on investment.
The CRTC plans to set new access rates by the end of the year, with existing rates in Ontario and Quebec remaining in place for the time being. This uncertainty around access fees has left companies like TekSavvy, an independent internet service provider, cautious about utilizing the expanded access. Andy Kaplan-Myrth, vice-president of regulatory and carrier affairs at TekSavvy, emphasized the importance of getting the rates right for the success of the decision.
Dwayne Winseck, a professor at Carleton University, highlighted the impact of previous CRTC decisions on smaller internet service providers. He noted that the reinstatement of higher access rates in 2021 had negative consequences for companies like Ebox, VMedia, Comwave, and Distributel, leading to a loss of choices for subscribers. Winseck emphasized the need for an open networks approach to foster competition in the market.
Overall, the CRTC’s decision to expand access for smaller internet providers to fibre networks of larger companies has the potential to increase competition and benefit consumers. However, the success of this decision will depend on the establishment of fair access rates and the willingness of companies to utilize the expanded access. The impact on internet prices in Canada remains to be seen, but this move represents a step towards a more competitive internet services market in the country.
