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Canada: SPs call on regulator to fix rules favoring larger providers

By  |  November 7, 2018
Canada: SPs call on regulator to fix rules favoring larger providers

According to a report from Telecom Paper, the Canadian Network Operators Consortium (CNOC), made up of 35 fixed and mobile service providers, is calling on Canadian regulator Canadian Radio-television and Telecommunications Commission (CRTC) to make the market more competitive for smaller players. This would give people access to more affordable high-speed internet and better speeds. “We need to fix the system that is allowing large telephone and cable companies to increase costs, reduce competition and eliminate consumer choice,” CNOC stated.

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    The consortium has filed an application with the regulator, asking it to adjust the regulations and lower the influence of large incumbents. The consortium particularly referred to rules dating from 2015, when the CRTC made big players open wholesale access to their broadband networks. The rules, designed to ensure competition on the Canadian market for internet services, was built on a flawed pricing process, the consortium stated, adding that incumbents overbilled competitors and ultimately Canadian consumers by over CA $300 million (US$228.8 million). The rules also did not anticipate the obstacles large incumbents have introduced to prevent a fair and competitive marketplace from developing, CNOC continued.

    The filing calls on the CRTC to reconsider the 2015 rules and make some key corrections in order to “prevent limiting choice, adding unnecessary complexity, and increasing consumer prices,” CNOC said.

    The consortium noted that independent internet providers price offerings up to 30% less than the large telephone and cable companies and that over 87% of Canadian households subscribe to high-speed internet.

    Full Content: Telecom Paper

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