OTTAWA – The CRTC denied TekSavvy’s application challenging the legality of specific arrangements entered into by Rogers and Bell that gave wholesale providers an internet rental rate better than that approved by the regulator.
The largest independent internet service provider filed undue preference challenges against an unpublicized rate deal Rogers is giving Videotron and a deal Bell is giving its own affiliate, the recently acquired EBOX, for access to their national internet networks.
After seeing those confidential terms, the CRTC ruled last Friday that the Rogers-Videotron discounts are “similar to those available under other existing off-tariff agreements.” The regulator noted that Videotron indicated its “willingness to offer the same terms and conditions to TekSavvy and other competitors.”
The CRTC also said that EBOX no longer exists as a separate corporate entity so there cannot be an undue preference, a claim that TekSavvy challenged in its original application.
Rogers CEO Tony Staffieri had previously said that its agreement with Videotron are “not much different” than others.
TekSavvy never challenged the legality of off-tariff agreements, as it engages in them. It was just concerned about whether the specific arrangements by Rogers and Bell were undue.
The CRTC said it may have drawn a different conclusion had Rogers or Bell offered those off-tariff rates to one provider but denied it to another.
“In this case, there is no evidence of a comparable off-tariff agreement being denied to any other party,” the CRTC said. “Videotron indicated its willingness to offer TekSavvy and other interested ISPs the same conditions contained in the off-tariff agreement with RCCI, provided that the related requirements are met.”
On Bell-EBOX, TekSavvy alleged Bell may be providing a rate to its affiliate that isn’t available to others, a claim of self-preference.
“EBOX now exists only as a brand name operated by Bell Canada,” the commission concluded. “All EBOX-branded telecommunications operations take place within Bell Canada and not in a separate affiliated company. EBOX Telecommunications Inc. remains a wholly owned subsidiary of Bell Canada and is not involved in the provision of any EBOX-branded retail services.”
