May 5, 2015 – Ottawa-Gatineau – Canadian Radio-television and Telecommunications Commission (CRTC)
Good afternoon.
Wireless services are of growing importance to Canadians and to Canada’s economy, and the innovation that leverages wireless networks now forms part of our daily lives.
Every day, more than 28 million subscribers rely on what are essentially microcomputers that fit in their palms, pockets and purses. Canadians are using mobile devices to do their banking, check up on their kids or elderly parents, apply for jobs, register for government services or stay in contact with friends, co-workers or clients.
A number of companies provide mobile wireless services to Canadians—some larger companies operate national networks, while other smaller companies operate networks within specific geographic areas.
Smaller companies, in particular, must access other networks when their customers travel outside their coverage area, in order to offer comparable services. This is done through wholesale arrangements. The rates, terms and conditions under which wireless service providers are able to obtain wholesale services are critical to their ability to offer competitive retail services.
Today’s decision is about ensuring that Canadians benefit from sustainable competition among wireless companies, and continued investments in wireless networks.
These benefits include reasonable prices, innovative services and increased choice.
In arriving at our decision, we found that the market in Canada for wholesale wireless roaming services is not sufficiently competitive. The three major national companies—Bell, Rogers and Telus—collectively possess market power in the national market for wholesale roaming. What’s more, they can use this market power to hold back competition.
They have the ability and incentive to maintain rates and impose terms and conditions that would not be sustainable in a competitive market.
We have therefore decided to regulate the rates charged by Bell, Telus and Rogers to other Canadian wireless companies for wholesale roaming services.
We are directing these major providers to each file proposed tariffs for their wholesale roaming services. Until they do, we have established interim rates for these wholesale roaming services that will come into effect immediately.
In light of today’s decision, we are also recommending that the Governor in Council repeal the cap that had been placed on wholesale wireless roaming rates in June of last year pending the outcome of this proceeding. This would enable market forces to prevail, once again, for all other wholesale roaming rates.
Our decision also removes certain barriers for mobile virtual network operators when negotiating wireless wholesale agreements with carriers. The new rules will enable them to provide more choice to Canadians.
Today’s decision is about finding the right balance. We want sustainable competition that increases choice for Canadians. But we also need to make sure that wireless companies continue to invest in innovative and high-quality networks. And we want to ensure that smaller companies can compete on a fair playing field with their larger competitors, so that they too can offer innovative products and services.
Ladies and gentlemen, the measures we are putting in place at the wholesale level will result in a more competitive retail market. A market in which Canadians can choose from a range of innovative wireless services offered at reasonable prices.
If you have any questions, I would be pleased to answer them now.
Thank you.
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