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CRTC sets interim rates for wholesale fibre internet access

GATINEAU, Que. — The CRTC has set interim rates for what smaller internet providers will have to pay to use the established fibre networks of their larger rivals.
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A person navigates to the on-line social-media pages of the Canadian Radio-television and Telecommunications Commission (CRTC) on a cell phone in Ottawa on Monday, May 17, 2021. THE CANADIAN PRESS/Sean Kilpatrick

GATINEAU, Que. — The CRTC has set interim rates for what smaller internet providers will have to pay to use the established fibre networks of their larger rivals.

The pricing comes as the national telecoms regulator works to expand nationally a mandate already in two provinces requiring the big telecom companies to share their fibre networks.

"Today’s decision will provide Canadians with new options for Internet, television, home phone and smart home services," said Vicky Eatrides, CEO of the CRTC in a statement.

"We are already seeing competitors using fibre access to bring new offers in Ontario and Quebec, and we look forward to this broader access benefiting even more Canadians.â€

The CRTC says the interim rates are based on an analysis of detailed costing information filed by the large telephone companies that own fibre internet networks, such as Bell ÎÚÑ»´«Ã½, Telus Corp. and SaskTel, and are meant to reflect the costs those companies incurred to build them.

Smaller providers will have to pay prices ranging from $65.25 to Telus for fibre to a premises in Quebec, $68.94 for most access to Bell networks, $77.57 for access to SaskTel and $80.41 to access Telus fibre in Alberta and British Columbia.

The regulator has also released pricing for installation, service charges and other costs.

The move comes after the CRTC announced in August it would require those companies to give competitors access to their networks for a fee — a decision that applies to networks countrywide as of next February.

A previous CRTC ruling late last year temporarily required Bell and Telus to provide competitors with access to their fibre-to-the-home networks only in Ontario and Quebec.

Bell has previously pushed back against requiring to open up its fibre network. The company said last year it would reduce its network spend by $1.1 billion in 2024 and 2025, saying the ruling diminished the business case for it to invest. The telecom giant later slashed 4,800 jobs, partially blaming unfavourable regulatory policies, and warned it could further cut network spending in the future.

In the summer, the commission said its latest decision, meant to boost competition and give consumers more internet choice, applies only to existing fibre networks, in recognition “that building out fibre is expensive.â€

Any new fibre infrastructure built by the large telecoms won’t be made available to competitors for five years.

Independent service providers have welcomed the access to fibre networks, but raised concerns over how access is being rolled out.

The CRTC says it has acted quickly to roll out interim rates on what is a complex and resource-intensive exercise. It says it will be seeking more information from providers as it works to set terms and conditions and final rates.

This report by The Canadian Press was first published Oct. 25, 2024.

Companies in this story: (TSX:BCE, TSX:T)

The Canadian Press