TORONTO — Independent Internet and IPTV service provider VMedia has added its voice to the growing number of independents who have expressed their disappointment with the federal government’s stance regarding the wholesale rates third-party Internet access (TPIA) providers pay incumbent network operators.
When the Governor-in-Council issued its ruling on August 15 regarding the CRTC’s August 2019 decision to lower wholesale rates, in which the GiC didn’t strike down the decision, Innovation, Science and Economic Development Minister Navdeep Bains issued a statement to say the federal cabinet was concerned the lower rates “may undermine investment in high-quality networks, particularly in rural and remote areas.”
The federal government’s position is the CRTC should revisit the final wholesale rates it set in its decision last year. The Commission is currently examining a Review & Vary appeal of its decision.
After the GiC issued its order August 15, independents ISPs TekSavvy and Start.ca announced they are now forced to raise their retail rates, given the federal government’s apparent direction to the Commission to adjust its thinking about lowering the wholesale rates TPIA providers pay the incumbents. That was followed by Distributel announcing it is adding a surcharge to its customers’ bills while awaiting the Commission’s new decision on wholesale rates.
Today, VMedia issued a news release expressing “its shock and dismay at the unprecedented reversal by the Federal Cabinet of a longstanding policy in favour of more competition to ensure fair and reasonable prices in home internet services for Canadians.”
The VMedia release goes on to say: “In effect, Cabinet is seeking to substitute its own findings, based on extensive and secret lobbying campaigns by the incumbents, for that of the CRTC — which, in contrast, concluded that prices are not just and reasonable and adjusted them accordingly, after conducting a six-year long completely transparent process, including hearings and analysis involving the world’s leading experts on internet costs.”
“We invite the Prime Minister to step up to the podium at his next briefing,” says George Burger, co-founder and director of VMedia, in the release, ”and explain to Canadians in the throes of this pandemic, when their economic circumstances are most vulnerable, and when internet service is so vital to their lives and livelihoods, that they are not, finally, entitled to just and reasonable internet prices because the incumbents are not making enough money.”
VMedia points out the CRTC’s decision on final wholesale rates is currently under appeal before the Federal Court of Appeal (FCA), in addition to being re-examined in the Commission’s R&V proceeding, at the request of the incumbents.
“Cabinet’s order is an unprecedented intervention in an ongoing proceeding being carried out by an independent administrative tribunal, and threatens to influence the judicial appeal currently before the FCA,” reads the VMedia release.
“This development was completely unexpected,” adds Alexei Tchernobrivets, CEO of VMedia, in the release, “and it appears deliberately intended to influence the two ongoing appeals of the CRTC decision. Instead of rejecting the decision itself, which it had the power to do, and face the disappointment of Canadian families, Cabinet has now placed the burden on the CRTC to make Canadians pay even higher prices for internet service, especially in these difficult times, and enrich the incumbents. The CRTC deserves to be applauded for its decision, not second-guessed.”
