New CRTC decision will make high-speed internet cheaper for some Canadians
More affordable high-speed internet is on its way to some Canadians.
On Monday, the Canadian Radio-television and Telecommunications Commission (CRTC) announced that it’s taking action to “increase choice and affordability of high-speed internet services for more than five million Canadian households.”
In a temporary and expedited decision, the CRTC says it will allow smaller, independent internet companies to sell services over major telecommunications companies’ — like Bell and Telus — fibre networks in Ontario and Quebec.
The CRTC is taking action to increase choice and affordability of high-speed Internet services for more than five million Canadian households. https://t.co/LDFhXc44Xn pic.twitter.com/bTfFlIs0JJ
— CRTCeng (@CRTCeng) November 6, 2023
This decision comes after the regulatory agency launched a review into how much smaller internet providers pay telecom giants to access their networks in March. The commission also said it would lower some wholesale internet rates by 10% at the time.
According to the CRTC, the review found that competition in the internet services market is declining.
“In recent years, the percentage of customers served by competitors has decreased dramatically,” reads the decision.
“This decrease is most significant in Ontario and Quebec, where independent competitors now serve 47% fewer customers than they did just two years ago.”
At the same time, it says that several competitors have been bought out by telecom giants, which has left many Canadians with fewer options for high-speed internet services.
On top of allowing smaller companies access to these major networks, the CRTC says it’s also setting the interim rates that competitors will pay when selling internet services over these fibre-to-home networks.
“These rates were chosen to allow Canada’s large internet companies to continue investing in their networks to deliver high-quality services to Canadians,” reads the decision.
In response to the decision, Bell announced that it would reduce its high-speed fibre internet expansion in Canada.
The telecom giant released a statement on Monday saying the CRTC’s decision “discourages network investment.”
Bell says it plans to reduce investments in its high-speed fibre internet network by over $1 billion from 2024 to 2025, including a minimum of $500 to $600 million in 2024.
“Rolling back fibre network expansion is a direct result of the CRTC’s decision,” reads the statement.
“When Bell enters a community with high-speed fibre internet, it increases competition, and customers benefit from better service, better value, and lower prices.”
The CRTC says the review is ongoing and that there will be a public hearing starting on February 12, 2024.
In the meantime, telecom giants are required to provide competitors with access to their high-speed fibre internet networks within six months.
The regulator says the six-month period will allow companies to prepare their networks, and to create information technology and billing systems.
“As the CRTC’s review advances, Canadians can expect continued action to increase choice and affordability while supporting investment in high-quality networks,” said Vicky Eatrides, chairperson and CEO of the CRTC, in a statement.
No decisions have been announced as to whether this will apply to other provinces in Canada.
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