CRTC promotes competition for broadband Internet services by setting lower wholesale rates
August 15, 2019 – Ottawa-Gatineau – Canadian Radio-television and Telecommunications Commission (CRTC)
The CRTC today set final wholesale rates that will facilitate greater competition and promote innovative broadband services and affordable prices for consumers.
The wholesale rates are paid by competitors who access the existing high-speed access networks of the large cable and telephone companies.
In 2016, the Commission set revised interim wholesale rates as those proposed by the service providers were not just and reasonable. The final rates announced today are lower than the interim rates and retroactive to the date they were set in 2016. The monthly capacity rates are 15% to 43% lower than the interim rates. As for the access rates, they are 3% to 77% lower than the interim rates.
“As the demand for faster broadband speeds grows, we are putting measures in place to ensure Canada’s Internet market remains dynamic. The final rates we set today will foster increased choice at more affordable prices while encouraging a more robust and competitive marketplace across Canada.”
Ian Scott, Chairperson and CEO of the CRTC
To foster competition in the broadband Internet market, large telephone and cable companies must make available parts of their networks to competitors under rates, terms and conditions that are set by the CRTC.
Wholesale rates consist of two components: capacity and access. The capacity rate refers to a monthly charge for the data used by the competitor’s subscribers and the access rate pertains to the cost to connect to the large cable and telephone companies’ networks.
In 2016, the CRTC set revised interim rates for aggregated high-speed access services for Bell Canada, Cogeco, Bell MTS, Rogers, SaskTel, Shaw, Telus, Videotron and Eastlink.
Under the CRTC’s policy, large telephone and cable companies must provide access to wholesale high-speed access services throughout their region and transition this access towards a new regime (disaggregated high-speed access).
The decision on final rates, terms and conditions for disaggregated high-speed access in Ontario and Quebec is forthcoming.
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