It\u2019s always amusing when telecoms join forces, single out an industry rival and then purport to champion consumer interests.<\/p>\n
Grab your popcorn, folks, because this latest dogfight over competition in the high-speed Internet market is a doozy.<\/p>\n
Need a primer? No problem.<\/p>\n
The federal government is upholding a decision by the telecom regulator<\/a> that allows large companies to resell high-speed Internet service over each other\u2019s fibre-optic networks. The goal, according to Industry Minister M\u00e9lanie Joly<\/a>, is to increase competition and lower prices across the country. <\/p>\n Specifically, the Canadian Radio-television and Telecommunications Commission, or CRTC, is requiring the country\u2019s largest telephone companies \u2013 namely BCE Inc. BCE-T<\/a>, Telus Corp. T-T<\/a> and SaskTel \u2013 to give competitors wholesale access to their fibre networks. <\/p>\n (Cable companies, such as Rogers Communications Inc. RCI-B-T<\/a>, are required to provide resellers with network access under a concurrent policy.)<\/p>\n Opinion: Ottawa should reverse the CRTC\u2019s decision on wholesale internet access<\/a><\/p>\n There are, of course, provisos baked into the CRTC\u2019s wholesale fibre network decision. The regulator will set the final rates (likely by the end of this year), and large internet service providers, including cable companies, can only piggyback on competitor networks to provide resale services outside of their home turf. <\/p>\n The policy allows for more competition on existing networks and paves the way for major players to offer discounted bundled services, including wireless, in new provinces. Trouble is, many companies in the industry are upset by the government\u2019s decision to back the CRTC\u2019s ruling and vow to keep on fighting the policy. <\/p>\n Some companies are still pursuing legal action, others are threatening to slash network investments and an industry association is claiming \u2013 get this \u2013 the decision is bad for consumers. (Aw, so sweet.)<\/p>\n One would think that telecom companies would jump at the chance to vie for new customers outside their traditional territories at a time of reduced immigration and heightened concern about building a unified Canadian economy.<\/p>\n But Telus, it seems, is the only major player willing to compete outside its established footprint, which spans Western Canada and parts of eastern Quebec. <\/p>\n The Vancouver-based telecom, which is already offering its resale service in new markets, is especially focused on acquiring more customers in Toronto, Montreal and Quebec City. (Telus\u2019s market share in Ontario and Quebec is less than four per cent.)<\/p>\n Instead of giving Telus a run for its money on its traditional power base by riding on its fibre network and poaching its customers, the telecom\u2019s competitors are teaming up to thwart its ambitions elsewhere in Canada. And they\u2019re gaslighting Canadians in the process.<\/p>\n Cogeco Communications Inc. CCA-T<\/a> and Bragg Communications Inc.\u2019s Eastlink are trying to appeal the CRTC\u2019s decision in federal court. <\/p>\n \u201cUnless corrected, this policy will have a detrimental impact on consumers and the broader Canadian economy,\u201d said Fr\u00e9d\u00e9ric Perron, Cogeco\u2019s president and chief executive officer, in a statement<\/a>.<\/p>\n Cogeco is arguing that Ottawa is \u201cunfairly empowering\u201d the Big Three \u2013 Rogers, Bell and Telus \u2013 to expand by \u201creselling the networks of smaller regional players.\u201d <\/p>\n Eastlink, which operates in Atlantic Canada, has said it is suspending planned upgrades and intends to identify communities that will become unprofitable and \u201crequire shutdown.\u201d <\/p>\n Opinion: If Bell doesn\u2019t like competing with Telus on its own broadband network, it really won\u2019t like the alternatives<\/a><\/p>\n Let\u2019s get down to brass tacks. <\/p>\n This is primarily about the battle for Ontario and Quebec (sorry, Nova Scotia and Saskatchewan), and it is specifically about foiling Telus.<\/p>\n