Independent telecoms say new CRTC directive doesn’t do enough to foster competition
Some of Canada’s independent telecom companies say the federal government is putting too much faith in the country’s regulator to foster competition in the telecom sector and ensure internet and wireless services are more affordable.
Last year, the CRTC reversed its own 2019 decision to reduce fees big telecoms would be able to charge smaller internet service providers for access to their broadband networks. Like TekSavvy, independent telecom company Distributel also feels that Thursday’s decision not to alter the CRTC’s 2021 ruling was a “missed immediate opportunity to deliver financial relief to Canadians by lowering internet rates,” arguing that it will make it harder for smaller ISPs to do business.
“The new proposed policy direction acknowledges a Canadian telecom market that has high levels of private sector investment, high quality of service, higher prices, lower wireless data consumption and effective internet resellers and facilities-based regional wireless operators,” RBC analyst Drew McReynolds said in a client note.
MVNOs are wireless providers that buy cellphone network service from the big carriers at a wholesale rate and then sell access to customers at a more affordable rate.
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