Rogers seeks forbearance of third-party access, but coalition of ISPs opposed

Canada’s largest cableco is seeking forbearance from the CRTC for third-party Internet access (TPIA) services to businesses. But a group of seven ISPs is challenging the application and seeks to have the introduction of lower-speed services delayed. Rogers Cable Inc. applied on July 5 for forbearance in its systems in Ontario, New Brunswick and Newfoundland. The cable firm believes it is entitled to a positive ruling because it does not have a ubiquitous network, is not a dominant player and has several competitors. "Rogers has not built ubiquitous facilities to business locations as it has in residential areas," Ken Engelhart, VP regulatory law, wrote. "As such, Rogers’ TPIA service to business locations is limited. As well, there is an abundant supply of alternative broadband facilities in business locations that allow ISPs to provide high-speed Internet retail services to business customers." That has raised the hackles of the Coalition for Better Third Party Access (CBTPA), made up of ISPs Abacom Inc., B2B2C, BrunNet Inc., Infoteck Internet Inc., Interjonction Inc., Magma Communications Ltd. and On Call Internet Services. The seven companies say if the Rogers service is similar to that of Shaw or Cogeco, it would be available at large across the entire serving territory. "Additionally, Rogers doesn’t mention the fact that for the $79.95 that it charges for the service to business locations, it provides a level of service that superior to that which is described in its TPA tariff pages," consultant François Menard, writing on behalf of the coalition, offered. "It is for this reason that the CBTPA would submit that any test for forbearance shall require that the business service not be provided across the same underlying facility as the residential service." The group is also worried about the move to "Lite" services, Internet access being delivered at slower speeds than high-speed systems (NL, Feb. 11/02). It maintains the cablecos are offering the service for less than the third-party rate. For example, Rogers is charging $24.95, including five dollars for the rental of a cable modem. Taking away the modem cost, Rogers is receiving $19.95—less than the $21 per month (without modem) that it may charge other ISPs under Telecom Order 2000-789. The CBTPA is asking that Rogers be prohibited from selling Internet Lite until the cableco files a proper tariff and has it approved by the CRTC. "It is also noted that both Shaw and Cogeco currently provide business cable modem services without a tariff being approved by the commission and without any request for forbearance being granted," Menard wrote. "Given that Rogers has filed a request for forbearance now gives grounds to request that the commission orders both Shaw and Cogeco to immediately instigate a similar request for forbearance process or immediately file economic evaluations for third party access to their business services." Rogers asserts that Bell Canada is the major player in high-speed Internet. "Because Rogers is only beginning to provide service in the business market, we are not an access provider for ISPs," Engelhart told the commission. "Indeed, given the low penetration of our networks in business areas, Rogers would not be an ideal access provider for many ISPs. "With respect to market share, Rogers currently possesses 0% market share for any network access service that can be used by ISPs to provide high-speed Internet service to the business market. In contrast, Bell Nexxia has an extensive (and unregulated) wholesale network access service operation." The cableco reminds the CRTC that it has only been providing businesses with high-speed service for two years. It tends to be restricted to small- and medium-sized firms situated in buildings where Rogers has installed cable.

Rogers seeks forbearance of third-party access, but coalition of ISPs opposed

News | August 13, 2002

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