Telus Corp. says it awaits the CRTC's eventual decision on the rates smaller internet companies could end up paying larger carriers to sell services over their networks before deciding whether to adjust network spending plans. The Telus offices are seen in Ottawa on Friday, Aug. 4, 2023. THE CANADIAN PRESS/Justin Tang
BCE Inc. is urging the Canadian Radio-television and Telecommunications Commission (CRTC) to impose specific conditions, including speed caps and initial access constraints if the regulator permits smaller internet providers to utilize competitors' fiber networks to offer their services.
Representatives from Bell Canada's parent company appeared before the CRTC during its consultation on internet competition. This appearance followed closely after Bell announced significant job cuts and potential reductions in its fiber network investment, partly attributing these actions to the CRTC's decisions.
Robert Malcolmson, Bell's chief legal and regulatory officer, criticized the CRTC's earlier assessment that granting temporary wholesale internet access wouldn't lead to spending reductions, calling it "dead wrong." He urged the commission to consider restoring investment incentives while maintaining robust price competition.
The CRTC's interim decision in November compelled Bell and Telus Corp. to provide competitors access to their fiber-to-the-home networks in Ontario and Quebec within six months. Bell responded by slashing its network spending by $1.1 billion by 2025, citing diminished investment prospects due to the new rules.
Some smaller firms advocated for expanding wholesale rules to improve service coverage. Xplore Inc., based in New Brunswick, argued for broader wholesale access to enable competition in remote regions.
Bell proposed conditions to offset potential drawbacks, including limiting resale internet speeds to 1.5 gigabytes per second and delaying wholesalers' access to newly built networks. Malcolmson stressed the importance of maintaining incentives for network investment.
The ongoing CRTC hearing has seen over 20 groups presenting their perspectives. Telus, appearing before the commission, stated it would adjust network spending based on the final ruling. Unlike Bell, Telus hasn't reduced investment in response to the interim decision.
Zainul Mawji, president of Telus Consumer Solutions, warned against a wholesale internet access framework without access restrictions, foreseeing reduced investment in new regions and reliance on existing networks.
Bell's fiber network covers 7.4 million locations, but around five million homes lack access. Telus is near completion of its fiber network in Quebec but faces challenges in Alberta and B.C.
Both companies stressed the need for a regulatory framework that enables investment recovery and fosters network expansion. Telus expressed its commitment to completing network builds but emphasized the importance of favorable regulatory conditions for these endeavors.
