Canadian government backs CTRC decision on fibre infrastructure sharing

A new statement from Mélanie Joly, Minister of Industry and Minister responsible for economic development in Quebec, clarifies that the government supports the recent CRTC decision that allows carriers to share network infrastructure for fibre internet.

This all started last summer when the CRTC piloted this sharing initiative in parts of Ontario and Quebec. The goal was to allow smaller internet providers to use the bigger players’ fibre infrastructure so that Canadians would have more choices regarding their home internet. The key hangup for some, but a major plus for most, was that this ruling also allowed big players to resell on each other’s infrastructure, most notably resulting in Telus launching fibre internet services in Ontario and Quebec using Bell’s infrastructure.

This has led to Bell throwing a few fits, and other carriers also proposing alternative ways for the network sharing to work. However, throughout a year of deliberations, the CRTC has held strong in its original plan to allow fibre infrastructure to be shared amongst all the carriers. Now, the federal government is backing the plan.

While the CRTC can create what are essentially laws and rules, it needs federal cabinet approval to set anything in stone. Joly’s backing is the final piece of the puzzle in this long-fought battle.

This means Canadians should start seeing more internet options if fibre infrastructure runs to their homes. If previously you only had offers from either Bell, Telus, or Rogers, you could now potentially shop at all three and smaller companies like Teksavvy, Cogeco, and many others.

How all the major carriers will handle the news remains to be seen. Telus has been fighting for the ruling to be passed so it will be happy, but Bell paused its infrastructure rollout during the deliberations, so it remains to be seen what happens there.

Cogeco, for instance, has already shared a press release condemning the government’s decision. The release claims that if the Big Three carriers can resell their services on smaller networks like Cogeco’s, it could be detrimental to the smaller companies. That said, the release doesn’t mention what Cogeco stands to gain from being able to offer its services on the infrastructure of the Big Three.

It’s worth pointing out that Cogeco is benefiting from other wholesale rules, such as those governing wireless network sharing, which enabled Cogeco to launch wireless services in Ontario and Quebec using Telus’ network.

In the release, Cogeco said it “will continue to challenge the CRTC’s broken wholesale regime, including through the Federal Court of Appeal.” Cogeco and Eastlink both sought to appeal the CRTC fibre ruling last month.

Rogers is also against the ruling and shared a statement with MobileSyrup:

“The decision is a shocking reversal from the federal government’s principled position less than one year ago. The Carney government has declared its priority is to build a strong Canada and this decision does the exact opposite. It does not incent Canadian companies to invest in Canada.

“Virtually the entire industry, including small and regional providers, urged our elected officials to reverse the CRTC decision. The impact of this decision will include cuts to capital investment, a loss of network construction jobs, and reduced competition which will mean higher prices for Canadians.”

Therefore, it seems like Rogers is taking the same stance as Bell, and it sounds like the company also plans to cut infrastructure investments.

Telus, on the other hand, says, “We commend the federal government’s decision to uphold the CRTC’s wholesale fibre framework, a landmark ruling that reinforces Canada’s commitment to competition, choice, innovation and nation-building infrastructure investment.” The company has also recently committed to spending billions on infrastructure investments in the country.

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