Cable / Telecom News

CRTC scraps price ceiling for Telesat’s C-band FSS

Satellite Dish image.jpg

OTTAWA – To help promote a more competitive fixed satellite services market, the CRTC has removed the price ceiling currently applicable to Telesat Canada's C-band fixed satellite services.

In its decision on Thursday, the Commission said that the price ceiling for Telesat's C-band fixed satellite services (FSS) “is no longer appropriate or necessary, and is not a regulatory measure that is efficient and proportionate to its purpose, since Telesat's C-band FSS rates are well below the existing ceiling and continue to decline.”

When establishing a transitional regulatory framework for Telesat's FSS before the Canadian satellite market was opened to foreign competition, the CRTC set a price ceiling for the company's C-band FSS of $170,000 per month per transponder (applicable to full transponders over a minimum contract term of five years).  The Commission said then that the price ceiling was imposed as a transitory measure during a time of uncertainty for the Canadian FSS marketplace, to allow Telesat to have some price flexibility to compete with foreign operators, and to protect the interests of users who may not have access to adequate competitive choice.

But last year’s Satellite Inquiry Report noted Telesat’s "market dominance", prompting Commissioner Candice Molnar to call for the CRTC to initiate a public review of Telesat's current price ceiling, including its level, to its C-band services.

“Accordingly, although the current price ceiling is removed as a result of this decision, the Commission finds that in all other respects, the scope of forbearance set out in Telecom Decision 99-6 remains appropriate and necessary”, continues Thursday’s decision.  “As such, the Commission will continue to retain, among other powers, its powers under section 24 and subsection 27(1) of the Act to impose a new price ceiling or other regulatory measures in the future, if necessary.”

The Commission also directed Telesat to file an annual report on the pricing and use of its Canadian satellite fleet beginning in January, 2017.

www.crtc.gc.ca