Big Internet providers must open fibre networks to competitors; CRTC

Starting next year, the country’s largest internet service providers (ISPs) must share their high speed fibre networks with their smaller competitors. This measure will ensure that Canadians have more choice for high-speed Internet services and are able to fully leverage the benefits of the broadband home or business. That’s why I say we like the direction, because there are a million ways in which this could become unworkable if implemented wrong.

Because there is only one interface per province, the distances can be long, and the smaller competitors are required to pay for the transport of their data at rates that increase with distance travelled. “We won’t know until those tariffs are done and settled”. That review included a hearing held in November previous year.

The move should also foster greater competition in the broadband Internet market, the CRTC said in releasing the decision.

There are more than 500 independent ISPs operating in Canada, under names including Distributel, Teksavvy and Primus. The CRTC said no companies outside of central Canada have expressed a willingness to shift to the disaggregated model of service, and they will therefore not be able to get access to fibre optic cables.

“For independents to offer viable, alternative choices to Canadians, they too must have access to that telecom infrastructure”. The large incumbent companies will continue to be required to provide access to wholesale high speed access services throughout their region and transition this access to a disaggregated architecture.

“Our view is the incumbent telcos have a market reason to invest in improving their plant through the investment in fiber”, Mr. Blais said.

The 2015 Wall Report was commissioned by the CRTC and Industry Canada and offers a comprehensive look at a wealth of Canadian wired and wireless market statistics. “So we’re quite confident that’s going to happen”.

Consumer groups in Canada have also praised the ruling, with advocate Open Media touting it as the, “first step towards ensuring small independent ISPs are able to sell fiber Internet in Canada, which should expand access and affordability for users”. The system allows incumbents to charge a “cost-plus” fee to competitors using their networks.

The commission will set the costs for access to fiber services as part of a follow-up proceeding after the approach to disaggregation is determined. CRTC referred to this as a “legacy service”.

The new rules “will have a profoundly positive impact on Canadian consumers, competition, and competitors”, said William Sandiford, president of the Canadian Network Operators Consortium, which represents 37 telecommunications services providers across the country.