By Ahmad Hathout
The federal government will not send back the CRTC’s decision to allow the three largest telecommunications companies to ride on the internet networks of others, pointing to competition and lower costs.
“Canada’s new government has a strong mandate to bring costs down and to build one, strong, Canadian economy – one that aligns with our core values as a nation,” Industry Minister Melanie Joly said in a statement late Wednesday.
“According to the policy direction, the CRTC is responsible for considering how its decisions affect all forms of competition and investment, as well as how they foster affordability and lower prices, amongst other factors,” she continued. “Their decision to uphold the mandatory wholesale access framework was based on extensive consultation with experts, the Competition Bureau, and over 300 public submissions.
“Canadians depend on telecommunications services for every aspect of life,” she added. “By immediately increasing competition and consumer choice, the CRTC’s decision aims to reduce the cost of high-speed Internet for Canadians and will contribute toward our broader mandate to bring down costs across the board.”
The decision comes after the Competitive Network Operators of Canada (CNOC), Eastlink, Cogeco, and SaskTel filed a precautionary petition to cabinet asking it review any future decision by the CRTC to maintain mandated access by Rogers, Bell and Telus to the wholesale internet regime. The commission ruled in its final wholesale internet framework decision last summer that the largest players can access the networks of others, so long they are outside of their own operating footprint.
The CRTC ruled on June 20 that it wasn’t going to carve out an exemption for access to the wholesale internet regime, which triggered the precautionary petition and a challenge to the Federal Court of Appeal. The decision was the second time it decided same, after it refused to implement a recommendation from then-Industry Minister Francois-Philippe Champagne to consider banning the Big 3 from the regime.
“Cogeco is dismayed by the federal government’s decision to maintain the CRTC’s broken, nonsensical wholesale Internet regime, and is profoundly disappointed by Cabinet’s failure to ensure economic prosperity,” the regional telecom said in a statement late Wednesday.
“It directly contradicts government efforts to promote sustainable competition and drive economic growth,” added Frédéric Perron, president and CEO of Cogeco, in the release. “The CRTC’s current approach undermines choice and affordability, halting crucial innovation and investment vital for Canada’s future. Unless corrected, this policy will have a detrimental impact on consumers and the broader Canadian economy.”
The telecom said it will continue fighting the decision in federal court.
On the other hand, Telus, the only Big 3 telecom in favour of the CRTC policy, said it is pleased the cabinet’s decision.
“This decision affirms that public policy in our country is guided by due process, a national diversity of voices, evidence and the long-term interests of Canadians,” it said. “It sends a strong signal to consumers, businesses and investors that the Canadian regulatory system is robust, transparent and effective in balancing the needs of stakeholders, and enabling government policy.”
Rogers and Bell have claimed the CRTC policy will cripple investments in networks.
