Canada's Independent ISPs say CRTC ignoring Government pledge on telecom affordability

CRTC caves to big telecom pressure, and Canadians will pay

TORONTO, May 27, 2021 /CNW/ - The Competitive Network Operators of Canada (CNOC), the voice of Canada's independent internet service providers (ISPs) is disappointed by today's decision by the Canadian Radio-television and Telecommunications Commission (CRTC) to side with the big telephone and cable companies.

In August 2019, after six years of detailed investigation, the CRTC, Canada's telecommunications regulator, found that the inflated rates large telephone and cable companies were charging smaller Internet service providers were not just or reasonable, and reduced them by up to 73 per cent – a decision that yielded immediate savings for consumers. It also calculated that independent ISPs had overpaid the big telcos more than $325 million since 2016. The large telephone and cable companies took the CRTC's decision to court, then lobbied it to the Federal government, and also complained to the CRTC that the wholesale rates were too low.

In today's decision, which took years to arrive at, the CRTC sided with large telecom companies, and reinstated old, higher rates. Moreover, the CRTC indicated it intends to move ahead with a wholesale internet regime that, as currently designed, will make it impossible for smaller competitors to exist. Even worse, this new regime is not detailed yet, nor are costs known, and is not expected to actually be available for another two years or longer.

"This is an arbitrary decision that appears to be the result of lobby pressure and false big telco threats, and indicates that the CRTC is too afraid to take on the job of making telecom more competitive in Canada," said Matt Stein, Chair of CNOC and President of independent ISP Distributel. "The big question is 'what has changed'? What new evidence backs up this decision? Nothing. Canada's largest telecom companies, while simultaneously taking federal subsidies and paying dividends, continue to charge high prices and engage in poor customer service. Unless the federal government intervenes, Canadians will continue to get hosed."

CRTC ignoring the broader public interest to favour large telco profits
The CRTC's decision contradicts the Liberal government's stated commitment to improving the lives of middle-class Canadians, and to increasing competition and affordability in the highly concentrated telecommunications market.

"Our biggest concern is that the CRTC, which is tasked with regulating in the public interest, is taking active steps to allow the big telecom and cable companies to over-monetize hard-working Canadians," Stein said. "The CRTC recently decided against taking steps to allow more wireless competition, and now it is shutting the door on internet competition. Canadians should be very skeptical of the CRTC inexplicably changing its mind, and demand more from this institution."

About the Competitive Network Operators of Canada (CNOC)
CNOC is the voice of Canadian independent ISPs, representing more than 30 competitive telecommunications providers that operate wireline and/or wireless networks in many regions of Canada. CNOC's mission is to increase the level of competitive choice, add more value and boost innovation in the delivery of communications services to Canadians. For further information, visit http://www.cnoc.ca.

SOURCE Competitive Network Operators of Canada (CNOC)

For further information: Geoff White, Executive Director, CNOC, T: 613-612-1190, E: [email protected]