OTTAWA – The federal government is capping domestic wholesale wireless roaming rates in an effort to benefit Canadian consumers and give a leg-up to new wireless entrants.
Industry Minister James Moore said Wednesday that the Government will amend the Telecommunications Act to prevent large wireless providers from charging other companies more than they charge their own customers for mobile voice, data and text services. This measure will be in place until the CRTC, which launched its own investigation into roaming rates last week, makes a decision.
Minister Moore said in a statement that high domestic roaming rates hold back many providers, especially new entrants, from offering more choice, lower prices and better service to Canadians.
"The roaming rates that Canada's largest wireless companies are charging other domestic providers can be more than 10 times what they charge their own customers”, he continued. “For too long, Canadian consumers in the wireless sector have been the victims of these high roaming costs. With domestic roaming rates on networks capped, Canadian consumers will benefit from more competition in the wireless market."
Minister Moore is also granting the CRTC and Industry Canada the power to levy fines against companies that violate established rules including the Wireless Code and those related to the deployment of spectrum, services to rural areas, and tower sharing. These new enforcement measures, put in place via amendments to both the Telecommunications Act and the Radiocommunication Act, is something the Commission has wanted for some time.
The ability to assess administrative monetary penalites like these is something many have called for over the years, especially former CRTC chairman Konrad von Finckenstein, who used several speeches and appearances in front of legislators to urge the federal government to extend that power to the Commission.
Wednesday’s announcement added that the Telecommunications Act will also be amended to enhance information sharing between the CRTC and the Competition Bureau. This action follows on an agreement between the Commission and the Bureau signed last September which committed to closer cooperation between the two regulators.
