CRTC expands policy directing certain telecom giants to offer fibre access to rivals
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Loading... - Olive Cloutier
- 26 Aug 2024
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Canada’s telecom regulator is broadening a directive that large telephone companies provide rivals with access to their fibre networks in an effort to improve competition in the internet market.
Tuesday’s decision from the Canadian Radio-television and Telecommunications Commission, which will come into effect in February, expands upon an earlier, temporary directive that applied only to Ontario and Quebec, markets where, according to the regulator, internet competition had seen the most significant decline.
“Today’s decision builds on our work to ensure that Canadians have access to more choice of high-quality Internet and cellphone services at lower prices,” Vicky Eatrides, CRTC chairperson and chief executive officer, said in a statement.
“We have already taken action to encourage more competition in the cellphone market, while maintaining incentives for companies to invest in networks. We are seeing a positive impact on the cellphone rates Canadians pay and expect to see similar benefits for Internet services.”
The nationwide policy comes as telecoms have seen their stock prices under pressure owing to a combination of factors, including heightened competition in the wireless sector, reduced levels of immigration and the continuing decline of traditional cable television. Shares of BCE Inc. BCE-T and Telus Corp. T-T were down on the Toronto Stock Exchange Tuesday afternoon following the CRTC’s announcement, while the broader stock market closed sharply higher.
The regulator said last November, when it issued its temporary directive, that it would review whether to apply the policy to other provinces and make it permanent. Since then, the CRTC has received input from more than 300 parties, including large internet service providers and smaller competitors, and the commission held a week-long public hearing in February.
As a result of that input, the regulator has opted to make newly built fibre infrastructure exempt for five years to give the telephone companies – BCE, Telus and SaskTel – an opportunity to recoup their investments.
The regulator is still in the process of setting the rates for that access. The CRTC said it expects to have interim rates in place by the end of 2024, with final rates to follow.
Tuesday’s decision does not apply to the limited fibre infrastructure owned by cable companies, which, according to the CRTC, connects just 5 per cent of all households. The regulator already requires cable companies to allow their competitors to access their cable networks at rates set by the CRTC.
