Canadian telcos to share high speed networks with 3rd party providers
Back in 2008, the CRTC ruled that internet wholesalers should have fair access to higher speed data networks controlled by incumbents such as Bell and Telus. Partly due to growth in high speed cable internet, the incumbent telcos haves have been resisting providing the high speed access to 3rd party wholesalers, to maintain a competitive edge with their cable counterparts. The original 2008 ruling was challenged and sent to federal cabinet, which sent it back to the CRTC.
On Monday, the CRTC reaffirmed its position, which with means independents will have access to the same high speed internet as incumbents. Though many in the fair access camp see it as a blow to the “big guys”, it’s more of a glancing blow than a direct hit. The incumbents will have to share the high speed networks, but will be able to charge a 10% markup beyond the wholesale (or maintenance) price.
Like most CRTC rulings, this still isn’t the the final-final decision, as a second appeal to cabinet is possible, which could mean another year of so of waiting. I don’t think that’s too likely though, as Canadians increasingly move to high speed networks, the 10% markup is certainly better than the flat wholesale prices the incumbents have been getting in the past. Ultimately, it’s the kind of middle-of-the-road indecisive decision we’ve come to know and love from the CRTC, and only time will tell how it really works out for Canadian consumers and competition in the ISP marketplace.
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