The federal government agrees, at least in part, with the country’s major cable distributors who complain about the devastating effect on them of the new wholesale internet rates decided by the CRTC last year.
In August 2019, the Canadian Radio-television and Telecommunications Commission (CRTC) set new wholesale rates for small internet service providers that use the existing networks of large cable companies and telephone companies.
Since then, these large companies, which include Rogers, Shaw, Videotron, Cogeco, Bell, Telus and Eastlink, have challenged the new tariffs, saying that they are too low and that they take away any incentive to invest in their networks, their technology and their infrastructure. These industry greats have pressured the federal government to ask the CRTC to review its schedule or have it canceled, and have even taken their cases to court for the most part.
On Saturday, Innovation, Science and Industry Minister Navdeep Bains offered a response.
“Following this review [des présentations des parties], the Governor in Council considers that the tariffs do not in all cases adequately meet the expectations set in the policy objectives of the regulatory framework for wholesale services, and is concerned that this could hamper investments in large networks. quality, especially in rural and remote areas, ”said the Minister.
However, despite the fact that it thus seems to agree with the large cable distributors, the government does not intend to overturn the CRTC’s decision or send it back to it: “Given that the CRTC is already reviewing its decision there is no need to send it back to him for reconsideration, ”Bains said.
In recent months, the CRTC has held a consultation on the method for establishing tariffs for wholesale telecommunications services. Those concerned had until last Thursday to send him their briefs. In the wake of this process of reconsideration of its controversial decision, the CRTC expects to render a decision within four months.
In its intervention submitted to the CRTC, Quebecor Media, on behalf of its Videotron subsidiary, argued that the CRTC’s August 2019 order on new wholesale rates is “a monumental failure” and that they “will not allow underlying network operators to recover their costs, let alone obtain a reasonable return on their investments ”.
“As of the date of this [le 13 août 2020], we do not know if Order 2019-288 will be maintained, says Quebecor Media. That said, one thing is certain: if it is maintained, the impact on the Canadian telecommunications sector will be disastrous. ”
Quebecor adds that “it is absolutely crucial that a pricing method that will ensure that the experience of Ordinance 2019-288 will never be relived is adopted at the end of this proceeding”.
On Saturday, Minister Bains stressed that his government “is working hard to ensure that all Canadians have access to high speed internet”. “We invite all parties to cooperate with the CRTC’s ongoing review of the wholesale internet tariffs decision so that a timely conclusion can be reached that will provide greater certainty for all parties involved. . “
He also assured that the government will follow the file closely.
“We will continue to closely monitor CRTC proceedings to ensure that our regulatory frameworks include the right incentives to stimulate investment and competitive choices. […].»
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