OTTAWA — The CRTC initiated Tuesday a show cause proceeding asking why it’s necessary for wholesale high-speed access (HSA) service providers to make a distinction between wholesale HSA services for residential consumers and those for business customers when providing access to competitors.
As the Commission says in its notice of consultation, some wholesale HSA service providers include provisions and language in their tariff pages that differentiate between residential and business wholesale HSA services. As background, back in 2010, the Commission determined wholesale HSA service providers must provide their services to competitors at speeds that match all of the speed options they themselves offer their retail Internet service customers, known as the “speed-matching requirement.” Furthermore, in 2013, the Regulator determined the rates for business wholesale HSA services are to be the same as the rates for comparable residential wholesale HSA services. In the 2013 decision, the Commission noted business and residential wholesale HSA services essentially provide the same functionality, essentially use the same network components and typically have the same costs.
In the proceeding initiated Tuesday, the CRTC wants explanations as to why the wholesale HSA service providers’ tariff provisions that differentiate between residential and business wholesale HSA services — through restricting availability or establishing any other limitations — are necessary. In addition, the Commission is seeking comments on “the appropriateness of having an asymmetrical situation wherein several of the wholesale HSA service providers restrict availability of their service speed options based on market segmentation, while others do not.”
Regarding the speed-matching requirement, the Commission is asking for responses to the following questions:
- Provide your view, with supporting rationale, on whether or not the definition of speed matching should include a market segmentation restriction. That is, if a wholesale HSA service provider offers a retail residential or business service at a particular speed, should the corresponding wholesale service be restricted so that competitors can use the service only for the market segment in which the wholesale HSA service provider offers its retail service? Or, should competitors be allowed to offer either retail business or residential services, independent of the market segment in which the wholesale HSA service provider offers its retail service?
- Would a competitor’s ability to promote competition be hindered by limiting its exposure to a segmented portion of the retail market? Provide detailed rationale to support your position.
Interested parties wanting to take part in the proceeding must file interventions by April 2, 2020. Replies to interventions must be filed with the Commission by April 22, 2020.
