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Telecommunications industry

Telecoms Unite Against Telus, Claim Competition Decision Is Bad for Consumers

Strategic Insights

— 1 min read

As the Canadian government upholds the decision by the Canadian Radio-television and Telecommunications Commission (CRTC) to allow large telecom companies to resell high-speed internet service over each other's fibre networks, fierce opposition from industry rivals has ensued. The goal, according to Industry Minister Mélanie Joly, is to increase competition and lower prices across the country. However, major telecom companies like Rogers and BCE are vowing to keep on fighting the policy, claiming it will have a detrimental impact on consumers and the broader Canadian economy.

Key Takeaways:

  • The CRTC decision requires the country's largest telephone companies, including BCE Inc., Telus Corp., and SaskTel, to give competitors wholesale access to their fibre networks.
  • The policy allows for more competition on existing networks and paves the way for major players to offer discounted bundled services, including wireless, in new provinces.
  • Telus is the only major player willing to compete outside its established footprint and is focused on acquiring more customers in Toronto, Montreal, and Quebec City.
  • Cogeco Communications Inc. and Bragg Communications Inc.'s Eastlink are trying to appeal the CRTC's decision in federal court, arguing that it will unfairly empower the Big Three to expand by reselling the networks of smaller regional players.
  • Industry rivals, including Rogers and BCE, oppose the government's endorsement of the CRTC decision, claiming it will deter investment and limit competition.

Statistics:

  • The CRTC policy will set the final rates for wholesale fibre network access by the end of this year.
  • Telus's market share in Ontario and Quebec is less than four percent.
  • Cogeco's president and chief executive officer, Frédéric Perron, stated that the CRTC policy will have a detrimental impact on consumers and the broader Canadian economy.
  • Rogers has said that Ottawa's position "does not incent Canadian companies to invest in Canada."
  • BCE has stated that its Canadian fibre build is "largely going to plateau."
  • The Canadian Telecommunications Association has claimed that the CRTC policy undercuts smaller independent service providers and will ultimately harm Canadian consumers.

Sources:

  • "Canadian government backing CRTC decision on fibre network access". (Date not specified)
  • Industry Minister Mélanie Joly's statement. (Date not specified)
  • Cogeco Communications Inc.'s statement (quoted by Frédéric Perron, CEO). (Date not specified)
  • Telus's statement. (Date not specified)
  • Rogers' statement. (Date not specified)
  • BCE's statement. (Date not specified)
  • Canadian Telecommunications Association's statement (quoted by Robert Ghiz, president and CEO). (Date not specified)

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