OTTAWA, ON and GATINEAU, QC, Aug. 13, 2024 /CNW/ - The CRTC is taking a major step forward to improve competition in Canada's Internet market.
Today's decision will deliver more choice to Canadians who want higher-speed Internet at lower prices by enabling competitors to use the fibre networks of the large telephone companies and will maintain incentives for companies to invest in high-quality networks.
In 2023, the CRTC launched a public proceeding to improve Internet service competition in Canada. The record of the proceeding shows that competition in the Internet services market is declining. This has left many Canadians with fewer options for high-speed Internet.
Last November, the CRTC took a significant step to help stabilize the market. On a temporary and expedited basis, the CRTC provided competitors with a workable way to sell Internet services using the fibre-to-the-home networks of large telephone companies in Ontario and Quebec, where competition had declined most significantly. That access launched in May 2024, and competitors are using it today to offer consumers new fibre Internet choices.
Following the November decision, the CRTC continued to collect evidence and build a robust record to inform today's decision. The CRTC received over 300 submissions and heard directly from 22 groups during a week-long public hearing in February 2024.
Based on this record, the CRTC is now extending workable access to the large telephone companies' fibre across Canada. Starting on February 13, 2025, this new access will grow Internet competition and empower consumers with new choices. It will make Internet providers work harder to win Canadians' business so that consumers can benefit from lower prices and innovative new offers.
At the same time, the CRTC recognizes that building out fibre is expensive. The CRTC is taking action to ensure continued investments so that more Canadians can get access to high-quality, higher-speed Internet. For example, the new access granted in today's decision applies only to fibre that has already been built. Any new fibre built by the large telephone companies will be made available to competitors in five years. This head start gives the large companies an opportunity to more quickly make a return on their investments and encourages them to connect more Canadians to fibre sooner.
The CRTC is continuing its work to set the wholesale rates competitors pay when they sell Internet services over fibre networks. The CRTC will set just and reasonable cost-based rates for access to fibre across the country by the end of this year. These rates will be in place in time for the CRTC's new approach to take full effect in February 2025. For now, the existing rates in Ontario and Quebec will remain in place.
The CRTC will continue to closely monitor the Internet services market and the impact of its regulatory framework to ensure Canadians benefit from increased competition, lower prices and high-quality Internet.
Today's decision is part of the CRTC's broader effort to ensure that Canadians have access to affordable and high-quality telecommunications services. The CRTC is encouraged by the recent competitive activity in the cellphone market, where it gave regional competitors the ability to compete as mobile virtual network operators (MVNOs) using the networks of large cellphone companies across Canada. By extending its existing approach for Internet services to fibre networks, the CRTC is setting a path to similar success for Internet services.
Quotes
"Today's decision builds on our work to ensure that Canadians have access to more choice of high-quality Internet and cellphone services at lower prices. We have already taken action to encourage more competition in the cellphone market, while maintaining incentives for companies to invest in networks. We are seeing a positive impact on the cellphone rates Canadians pay and expect to see similar benefits for Internet services."
- Vicky Eatrides, Chairperson and Chief Executive Officer, CRTC
Quick facts
- The CRTC is an independent quasi-judicial tribunal that regulates the Canadian communications sector in the public interest. The CRTC holds public hearings on telecommunications and broadcasting matters, and makes decisions based on the public record.
- Today's decision is consistent with the objectives set out in the Telecommunications Act and the government's 2023 Policy Direction.
Associated links
- Telecom Regulatory Policy CRTC 2024-180 – Competition in Canada's Internet service markets
- Review of the wholesale high-speed access service framework – Temporary access to fibre-to-the-premises facilities over aggregated wholesale high-speed access services
- Telecom Notice of Consultation CRTC 2023-56
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SOURCE Canadian Radio-television and Telecommunications Commission
Contacts: Media Relations, Email: [email protected], Telephone: 819-997-9403; General Inquiries, Telephone: 819-997-0313, Toll free: 1-877-249-CRTC (2782), TTY: 819-994-0423
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