The federal government has confirmed it will not intervene in a key telecommunications ruling, effectively endorsing a regulatory decision designed to expand internet competition across Canada. According to a statement released Wednesday evening, Ottawa will uphold the Canadian Radio-television and Telecommunications Commission’s (CRTC) policy allowing major internet providers to access fibre networks owned by rivals — provided it occurs outside their home territories.
Per a statement from Industry Minister Mélanie Joly, the CRTC’s decision “will immediately allow for more competition on existing networks for high-speed internet services across the country.” The government’s support comes after months of review and consultation.
The policy, which was finalized by the CRTC in June following extensive public and industry feedback, is intended to strike a balance between encouraging competition and ensuring continued investment in network infrastructure. According to a statement from the minister, the regulator consulted with experts, the Competition Bureau, and received over 300 public submissions before arriving at its decision.
The framework at the center of the debate has divided Canada’s telecom sector. While companies like Telus Corp. have supported the move as a way to improve affordability and extend service to regions where they lack infrastructure, others — including Bell Canada and Rogers Communications Inc. — have voiced strong opposition. They argue the rules undercut incentives to invest in costly fibre builds.
Initially implemented in May 2024 on a limited scale, the wholesale access policy required Bell and Telus to lease access to their fibre-to-the-home networks to other providers for a regulated fee. The arrangement, first applied in Ontario and Quebec, was expanded in August 2024 to apply nationwide to all telephone company-owned fibre networks.
The CRTC has emphasized that the policy applies strictly to existing fibre builds, exempting newly constructed networks from access obligations for a five-year period — a measure meant to acknowledge the high costs of fibre deployment.
After the federal government requested a reconsideration of whether the country’s largest telecom firms should also operate as wholesalers under the policy, the regulator initiated a consultation and issued a temporary decision in February maintaining the framework. That decision was later upheld in full this June, with the CRTC concluding the policy had only a modest short-term impact on regional carriers’ market share while supporting broader affordability goals.
Ottawa had until August 13 to respond to the regulator’s final decision. According to the government’s latest statement, it has opted not to alter the ruling, reinforcing its confidence in the regulator’s judgment.
Despite opposition, Telus has leaned into the wholesale model, beginning to offer fibre internet services in Ontario and Quebec under the new framework late last year. The company also announced plans to extend its offerings to the Atlantic provinces. Last month, it pledged a $2 billion investment in fibre expansion across Ontario and Quebec over five years, attributing the move to the supportive regulatory environment.
Bell, on the other hand, scaled back its plans in reaction to the February decision, citing a $500 million reduction in network investments and a delay affecting 1.5 million fibre connections. Along with Rogers and the Canadian Telecommunications Association, Bell had urged Ottawa to overturn the CRTC’s ruling.
The CRTC maintains that its wholesale access policy will enhance consumer choice while preserving incentives for infrastructure growth. Per the statement from Minister Joly, the decision “aims to reduce the cost of high-speed internet for Canadians” and aligns with the government’s broader effort to lower consumer expenses.
Source: The Canadian Press News