OTTAWA, Feb. 21, 2013 /CNW/ - Today, the Canadian Radio-television and
Telecommunications Commission (CRTC) established final rates for the
wholesale high-speed access services used by independent service
providers to offer competitively priced Internet and other services. As
a result of certain adjustments, some independent service providers
will see significant reductions in the wholesale rates they pay.
"Large and small independent service providers now have the certainty
they need to continue offering Canadians a choice of innovative and
competitive services," said Jean-Pierre Blais, Chairman of the CRTC.
"We are pleased to finally close this chapter after a careful
examination of the wholesale rates, which included a review of the
All large telephone and cable companies that provide wholesale
high-speed access services to independent service providers must now
use a single billing model and offer the same rates for business and
residential end-users. This will result in a more straightforward
billing process for independent service providers. Previously, certain
large companies charged different rates under different billing models
for wholesale and residential business services.
The final wholesale rates are based on the large telephone and cable
companies' costs, plus a reasonable markup. The rates enable large
companies to recover their costs and make further investments in their
Today's decisions apply only to the wholesale high-speed access services
the large telephone and cable companies sell to independent service
providers. The CRTC does not approve the rates and packages for
Internet services offered to Canadian consumers at the retail level.
The CRTC expects, however, that the final wholesale rates will have a
favourable impact on prices charged in the competitive retail market.
Telecom Regulatory Policy CRTC 2013-70
Telecom Decision CRTC 2013-71
Telecom Decision CRTC 2013-72
Telecom Decision CRTC 2013-73
Telecom Decision CRTC 2013-74
Telecom Decision CRTC 2013-75
Telecom Decision CRTC 2013-76
Telecom Decision CRTC 2013-77
Telecom Decision CRTC 2013-78
Telecom Notice of Consultation CRTC 2013-79
Telecom Notice of Consultation CRTC 2013-80
News release, "CRTC moving ahead with capacity-based billing," January
Telecom Decision CRTC 2012-60
News release, "CRTC supports choice of Internet services," November 15,
Telecom Regulatory Policy CRTC 2011-703
Telecom Regulatory Policy CRTC 2011-704
The CRTC is an administrative tribunal that regulates and supervises
broadcasting and telecommunications in Canada.
Additional information on wholesale high-speed access services
In the late 1990s, the Canadian Radio-television and Telecommunications
Commission (CRTC) decided that it would not intervene in Internet
services. There was enough competition to give Canadians choice.
Internet service providers set the rates paid by consumers, as well as
other terms and conditions, without having to obtain the CRTC's
With the introduction of high-speed Internet services, the CRTC required
large telephone and cable companies to sell access to their networks to
independent service providers on a wholesale basis. Independent service
providers use these services, known as wholesale high-speed access
services, to offer Internet and other services to their own retail
customers. This decision was taken to encourage further competition and
choice for Canadians. By the end of 2011, independent service providers
had more than 700,000 high-speed residential Internet subscribers, or
nearly 7 per cent of the market.
In 2011, the CRTC launched a public consultation to review how the large
companies should charge independent service providers for the use of
their networks. Further to this consultation, the CRTC selected two
wholesale billing models—the capacity-based and flat-rate models—that
give independent service providers the flexibility to develop
innovative packages and pricing plans. At the same time, these models
allow the large companies to recover their costs and continue to invest
in their networks.
Since then, several large companies and independent service providers
have asked the CRTC to review the wholesale rates associated with these
billing models. Some wholesale rates were implemented on an interim
basis while the CRTC considered these requests.
The CRTC has now finalized the rates for wholesale high-speed access
SOURCE: Canadian Radio-television and Telecommunications Commission
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