CRTC cuts wholesale rates 10 percent, launches review of internet competition

The CRTC is welcoming comments from Canadians until April 24th

The Canadian Radio-television and Telecommunications Commission (CRTC) has announced the launch of a consultation on the internet service market in a bid to “increase competition, create more choice and lower prices.”

“The CRTC recognizes its current approach is not meeting its objective of encouraging more competition in the Internet services market,” reads a news release shared by the CRTC.

The commission says it will re-examine the wholesale rates competitors pay to large telecom companies to access their networks. While it carries out the review, the CRTC says it’s imposing an immediate 10 percent reduction on some wholesale rates.

As a quick refresher, in 2021, the CRTC reversed its 2019 decision on wholesale rates and went with the higher interim wholesale rates. Since then, Canada has seen several smaller ISPs gobbled up by large telecom players, including Oxio, Start.ca and more.

Moreover, the CRTC will examine “on an expedited basis” whether telecom companies should provide access to their fibre-to-the-home (FTTH) networks to competitors.

The CRTC welcomes Canadians to participate by sharing comments on the question of mandating access to FTTH until April 24th, 2023. Those interested in doing so can fill out this online form, write to the Secretary General of the CRTC or send a fax. More details on this can be found in the CRTC news release.

In other internet pricing news, independent ISP TekSavvy asked the CRTC to investigate Rogers’ deal with VidĂ©otron, alleging Rogers’ offer to lease its broadband network with VidĂ©otron at a discounted price as part of the Freedom Mobile transfer and the Shaw merger. TekSavvy argues the deal violated the Telecommunications Act — Rogers claims the deal isn’t “preferential.”Source: CRTC