{"id":1568,"date":"2025-06-21T06:06:13","date_gmt":"2025-06-21T06:06:13","guid":{"rendered":"https:\/\/www.europesays.com\/us\/1568\/"},"modified":"2025-06-21T06:06:13","modified_gmt":"2025-06-21T06:06:13","slug":"crtc-upholds-decision-allowing-large-telecoms-to-resell-internet-services-on-each-others-networks","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/1568\/","title":{"rendered":"CRTC upholds decision allowing large telecoms to resell internet services on each other\u2019s networks"},"content":{"rendered":"<p><a style=\"display:block\" href=\"https:\/\/www.theglobeandmail.com\/resizer\/v2\/R6MIU34K5BCYPPLVM24XMBVGE4.JPG?auth=58a3326379405f6f3d70033a14bb25032318a60467c5f87232c700cc6c4bda9c&amp;width=600&amp;height=400&amp;quality=80&amp;smart=true\" aria-haspopup=\"true\" data-photo-viewer-index=\"0\" target=\"_blank\" rel=\"noopener\">Open this photo in gallery:<\/a><\/p>\n<p class=\"figcap-text\">In a Friday morning decision,the Canadian Radio-television and Telecommunications Commission held firm on its previous decision that Telus, Bell and Rogers are allowed to expand into each others\u2019 fibre networks where they don\u2019t already have their own infrastructure.Nathan Denette\/The Canadian Press<\/p>\n<p class=\"c-article-body__text text-pr-5\">Canada\u2019s telecom regulator has upheld its decision allowing large telecoms to resell internet services through rivals\u2019 fibre networks, siding with arguments made by Telus Corp. <a href=\"https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/T-T\/\" target=\"_self\" rel=\"noopener\" title=\"https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/T-T\/\">T-T<\/a> in a long-running policy debate over competition in the sector. <\/p>\n<p class=\"c-article-body__text text-pr-5\">The verdict prompted strong reactions from other companies and industry groups opposed to the decision, with some calling for Ottawa to intervene. <\/p>\n<p class=\"c-article-body__text text-pr-5\">Given the steep cost of building infrastructure, the fibre wholesale framework was designed to improve internet affordability and competition by giving new market entrants an opportunity to piggyback on existing networks. <\/p>\n<p class=\"c-article-body__text text-pr-5\">The government previously required three carriers \u2013 BCE Inc.\u2019s Bell Canada <a href=\"https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/BCE-T\/\" target=\"_self\" rel=\"noopener\" title=\"https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/BCE-T\/\">BCE-T<\/a>, Telus and SaskTel \u2013 to give competitors access to their fibre networks at regulator-set rates. <\/p>\n<p class=\"c-article-body__text text-pr-5\">The latest question under review was whether, in addition to smaller regional companies, the country\u2019s three largest carriers would be allowed to take advantage of the mandated rates as well. <\/p>\n<p class=\"c-article-body__text text-pr-5\">The Canadian Radio-television and Telecommunications Commission on Friday reaffirmed its 2024 decision that Telus, Bell and Rogers could expand into each others\u2019 fibre networks where they don\u2019t already have their own infrastructure. <\/p>\n<p class=\"c-article-body__text text-pr-5\">This means that Telus, whose network is primarily in the West, can expand over Bell\u2019s networks in the East, and vice versa. Rogers has cable infrastructure spanning the country, so it is excluded from accessing the mandated rates near-nationally. The company has some fibre, but it is not yet being required to grant competitors access to it. <\/p>\n<p class=\"c-article-body__text mv-16 l-inset text-pb-8\" data-sophi-feature=\"interstitial\"><a href=\"https:\/\/www.theglobeandmail.com\/business\/article-rogers-bell-telus-competition-review\/\" target=\"_blank\" rel=\"noopener\">From 2024: Ottawa orders CRTC review of Rogers, Bell and Telus reselling services on each other\u2019s networks<\/a><\/p>\n<p class=\"c-article-body__text text-pr-5\">The CRTC said several thousand Canadian households have already purchased new internet plans offered by dozens of providers using the access enabled by the framework. <\/p>\n<p class=\"c-article-body__text text-pr-5\">\u201cChanging course now would reverse the benefits of this increased competition and would prevent more Canadians from having new choices of ISPs in the future,\u201d the CRTC said.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The policy debate created a rare industry split that saw nearly every one of the country\u2019s largest telecoms in agreement and only one major carrier, Telus, split from the rest. The country\u2019s biggest telecoms have been facing pressure because of high debt loads and the mature market\u2019s overall slowdown.<\/p>\n<p class=\"c-article-body__text text-pr-5\">In CRTC proceedings, Telus had argued it should be allowed to resell on SaskTel\u2019s and Bell\u2019s networks, saying that where an incumbent operates outside of its network area, it is acting as a new competitor to the potential benefit of consumers. <\/p>\n<p class=\"c-article-body__text text-pr-5\">The Eastern Canadian market that Telus will now have increased access to is about three times larger than its own Western Canadian footprint, Royal Bank of Canada analyst Drew McReynolds said in an investor note Friday.<\/p>\n<p class=\"c-article-body__text text-pr-5\">In a statement Friday morning, Telus said the decision reinforces the independence of expert regulators. <\/p>\n<p class=\"c-article-body__text text-pr-5\">The Competition Bureau also supported incumbents accessing their competitors\u2019 networks, saying the benefits outweighed the risks. <\/p>\n<p class=\"c-article-body__text mv-16 l-inset text-pb-8\" data-sophi-feature=\"interstitial\"><a href=\"https:\/\/www.theglobeandmail.com\/opinion\/article-the-crtc-has-failed-to-protect-the-canadian-broadcasting-industry\/\" target=\"_blank\" rel=\"noopener\">Opinion: The CRTC has failed to protect the Canadian broadcasting industry<\/a><\/p>\n<p class=\"c-article-body__text text-pr-5\">But all other major telecoms took another view.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Bell, Rogers, Cogeco Inc., Quebecor Inc., Bragg Communications Inc.\u2019s Eastlink and Teksavvy, as well as the Competitive Network Operators of Canada, which represents independent companies, opposed Telus, arguing it should not be considered a new entrant. <\/p>\n<p class=\"c-article-body__text text-pr-5\">Bell and Rogers had said that allowing the incumbents to resell internet would put a chill on network investment, while others argued incumbents like Telus would use their scale and bundling abilities to swallow up competitors.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The CRTC dismissed these concerns, saying incumbent access would only have a \u201cmodest near-term impact\u201d on regional competitors and would not discourage network investment. <\/p>\n<p class=\"c-article-body__text text-pr-5\">The Canadian Telecommunications Association, which represents Bell and Rogers but not Telus, said it is \u201cdeeply disappointed\u201d by the decision and called on Ottawa to overturn it. <\/p>\n<p class=\"c-article-body__text text-pr-5\">The federal government has the power to make changes to the regulator\u2019s decision itself, or require that the CRTC revisit it, until Aug. 13. However, the CRTC noted in its Friday decision that it has built a broad body of data based on extensive consultation, suggesting it is unlikely to come to a different conclusion if asked to reconsider.<\/p>\n<p class=\"c-article-body__text text-pr-5\">In a statement, Bell\u2019s chief regulatory officer Robert Malcolmson also asked government to intervene, saying the CRTC\u2019s decision \u201ccalls into question the regulator\u2019s ability to objectively evaluate its original decision on this issue.\u201d <\/p>\n<p class=\"c-article-body__text mv-16 l-inset text-pb-8\" data-sophi-feature=\"interstitial\"><a href=\"https:\/\/www.theglobeandmail.com\/business\/article-crtc-hearing-internet-label-telus-bell\/\" target=\"_blank\" rel=\"noopener\">CRTC considers standardized labels in hearing on home internet plans<\/a><\/p>\n<p class=\"c-article-body__text text-pr-5\">Rogers urged Ottawa to act to preserve billions of dollars in planned network investments \u201cnow at risk.\u201d<\/p>\n<p class=\"c-article-body__text text-pr-5\">Eastlink said the decision, if left unchanged, would force it to consider other investment plans, while Cogeco it would \u201ccontinue to fight this decision until it\u2019s fixed\u00ad.&#8221; TekSavvy said it is now \u201ceven more critical that wholesale rates are significantly reduced.\u201d<\/p>\n<p class=\"c-article-body__text text-pr-5\">The CRTC has yet to finalize the rates that companies will pay to access Bell, Telus and SaskTel\u2019s networks. Several analysts said Friday those rates would likely dictate the ultimate impact of the CRTC decision\u2019s on investment and competition.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The number of carriers that could have competed using the wholesale framework has shrunk in recent years following a spate of acquisitions by incumbents. <\/p>\n<p class=\"c-article-body__text text-pr-5\">According to Bank of Montreal analyst Tim Casey, wholesalers represented about 10 per cent of internet subscriber share in 2019, but now only make up half that amount.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: In a Friday morning decision,the Canadian Radio-television and Telecommunications Commission held firm on&hellip;\n","protected":false},"author":3,"featured_media":1569,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[2148,2138,671,104,2132,692,2147,2131,2143,2144,2140,2133,2130,79,407,746,2142,2137,2159,2134,2135,454,712,2139,1165,728,2149,108,2154,2155,2157,2152,2156,2150,2153,2136,85,2146,80,2145,2151,1458,158,1164,2141,67,132,68,1154,107,2158],"class_list":{"0":"post-1568","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-internet","8":"tag-alberta","9":"tag-arts-news","10":"tag-bc","11":"tag-breaking-news","12":"tag-breaking-news-video","13":"tag-british-columbia","14":"tag-canada","15":"tag-canada-news","16":"tag-canada-sports","17":"tag-canada-sports-news","18":"tag-canada-trafficcanada-weather","19":"tag-canadian-breaking-news","20":"tag-canadian-news","21":"tag-economy","22":"tag-education","23":"tag-environment","24":"tag-federal-government","25":"tag-foreign-news","26":"tag-globe-and-mail","27":"tag-globe-and-mail-breaking-news","28":"tag-globe-and-mail-canada-news","29":"tag-government","30":"tag-internet","31":"tag-life-news","32":"tag-lifestyle","33":"tag-local-news","34":"tag-manitoba","35":"tag-national-news","36":"tag-new-brunswick","37":"tag-newfoundland-and-labrador","38":"tag-northwest-territories","39":"tag-nova-scotia","40":"tag-nunavut","41":"tag-ontario","42":"tag-pei","43":"tag-photos","44":"tag-political-news","45":"tag-political-opinion","46":"tag-politics","47":"tag-politics-news","48":"tag-quebec","49":"tag-sports-news","50":"tag-technology","51":"tag-travel","52":"tag-trudeau","53":"tag-united-states","54":"tag-unitedstates","55":"tag-us","56":"tag-us-news","57":"tag-world-news","58":"tag-yukon"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=1568"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1568\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/1569"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=1568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=1568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=1568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}