Starting February, Canada's major telecoms like Bell and Telus will be required to grant smaller providers access to their fiber networks, expanding competition and choice for internet users nationwide. (Photo: the Canadian press)
Canada's telecommunications regulator, the CRTC, is broadening a previous decision to allow smaller internet providers to use the fibre networks of larger companies to offer their services. Starting in February, telecom giants like Bell Canada, Telus Corp., and SaskTel will be required to provide access to their fibre networks to competitors for a fee. This mandate, which applies nationwide, expands upon a ruling from last year that initially focused only on Ontario and Quebec.
The previous ruling, which came into effect this May, aimed to boost competition in regions where smaller companies were struggling. It required Bell and Telus to offer access to their fibre-to-the-home networks in Ontario and Quebec. Bell responded by cutting $1.1 billion from its network investment budget for 2024 and 2025, citing the ruling as a factor. The company also laid off 4,800 employees, partly blaming regulatory challenges.
The CRTC's latest decision focuses on existing fibre networks, acknowledging the high costs of building new infrastructure. New fibre networks constructed by these large telecoms will remain off-limits to competitors for five years, allowing the original builders to recoup their investments. Cable companies like Rogers Communications Inc. are exempt from this requirement due to the smaller footprint of their fibre networks in Canada.
The CRTC's decision follows a hearing in February, where it heard from various industry stakeholders. According to the regulator, customers in Ontario and Quebec have already benefited from increased competition since the initial ruling. CRTC chairperson Vicky Eatrides emphasized that the decision aligns with the commission's efforts to provide Canadians with more affordable and high-quality internet and cellphone services.
While some large telecoms opposed the CRTC's direction, smaller competitors, such as TekSavvy, welcomed the move, calling for a level playing field in internet competition. The Competitive Network Operators of Canada, an industry group representing independent providers, expressed optimism about the expanded access but also noted concerns about the challenges posed by the delays and the head start given to larger companies.
Bell had suggested several conditions to address potential disadvantages, including the five-year head start for network builders. The CRTC also mandated that both telephone and cable companies continue to build out networks within their traditional territories to prevent them from becoming mere wholesalers.
While Bell and Telus did not comment, Rogers said it is reviewing the decision. Quebecor Inc.’s CEO, Pierre Karl Péladeau, praised the decision for promoting competition, though he stressed the importance of fair access rates, which the CRTC plans to finalize by the end of the year.
