Start.ca, too
CHATHAM – Independent ISP TekSavvy told customers today they will be seeing lower prices and upgraded internet packages, thanks to the recent CRTC decision on the rates the company must pay to incumbent operators for wholesale access.
It was a, well, savvy bit of timing, since five of those incumbents filed a motion for leave to appeal the Commission decision today as well.
TekSavvy said today in a release over 85% of its customers will benefit from reduced prices or upgraded, unlimited data plans on their next monthly bill, as the ISP streamlines its retail product line thanks to the CRTC decision.
“On August 15, 2019, the CRTC determined that Canada's biggest telecom companies—such as Bell Canada and Rogers—had grossly overstated their costs in providing smaller competitors with wholesale access to their networks. The CRTC identified numerous brazen deficiencies in the big telcos' evidence, found that the existing wholesale rates were in fact severely inflated, and corrected the final rates down to more reasonable levels. The CRTC further ordered the big telcos to repay the amounts they had overcharged smaller competitors during the three year regulatory proceeding,” reads the TekSavvy release.
"TekSavvy has been ringing alarm bells about inflated wholesale rates for years," said Marc Gaudrault, TekSavvy's CEO, in the release. "So we're happy to be able to pass these benefits on to our customers as we continue our investments in wireless LTE and fibre networks."
"The impact of the rate inflation was devastating to competitors and an unjust windfall for the big telcos. For years, we struggled to compete and lost out on many opportunities to invest in our own networks, our businesses, and innovations," added Andy Kaplan-Myrth, VP regulatory and carrier affairs. "We appreciate our customers sticking with TekSavvy and today's announcement is just the first step while we continue to assess the CRTC's final rates decision."
Kaplan-Myrth told Cartt.ca in an email customers, depending on their levels of services and locations, will see rate breaks anywhere from under a dollar to up to $20 a month. “We don’t know what would happen if the decision is overturned,” he added, referring to the appeal, “but it’s clear that the carriers are going to draw this out as long as they can, and Canadians can’t just keep waiting. We think the CRTC’s decision is clear and that these are more reasonable rates, and passing savings on to our customers is just the right thing to do.”
Also Friday, independent ISP Start.ca said it, too, would lower its rates. The London, Ont.-based company said customers “will see their rates go down and/or their speeds increase,” in a release. “These changes will happen automatically, with no action required from customers. While the initial changes affect higher speed plans, Start.ca anticipates further improvements will benefit every single customer.”
