CRTC changes position on MVNOs, proposes mandated access

The CRTC has reversed its long-held position that mobile virtual network operators (MVNOs) aren’t entitled to wholesale access to wireless providers’ networks. It now holds the “preliminary view" that mobile virtual network operators "should have mandated access” to the networks of the big three national wireless providers — BCE Inc., Rogers Communications Inc. and Telus Corp. — “until they are able to establish themselves in the market.” The regulator said in a notice of consultation Thursday, released after the markets closed, that it now believes the benefits of a “well-developed MVNO market” are likely to outweigh any negative effects such a policy would have on “wireless carriers’ network investments, particularly given the extensive investments that have been made in recent years.” The new position — which follows sustained pressure from the federal government to mandate access for at least some MVNOs — came as the regulator launched its review of its mobile wireless framework. It will hold a public hearing on the question in January 2020. The start of the review was announced two days after the government proposed a new policy direction for the CRTC, which would require the regulator to consider how regulatory measures can “promote competition, affordability, consumer interests and innovation” in issuing new regulations and rulings. The CRTC said Thursday the review of its 2015 mobile wireless framework would look at “whether further action is required to improve choice and affordability for Canadians,” and examine the deployment of 5G networks -- including the increasingly contentious issue of access to infrastructure. In that 2015 decision, the CRTC began regulating the wholesale wireless rates BCE Inc., Rogers Communications Inc. and Telus Corp. charge smaller carriers, but determined MVNOs weren’t entitled to roam on the wireless providers’ networks. It said at the time mandating MVNO access would "likely discourage continued investment by wireless carriers.” It stuck with that position in subsequent decisions — even as the government disagreed and ordered it to reconsider. In its notice of consultation, the CRTC said that in the five years since the mobile wireless decision, it has become "increasingly clear that a mix of competitors has not developed to the degree that the Commission had expected in 2015. "While facilities-based competitors have continued to expand their operations and reach, and while MVNO activity has increased in the machine-to-machine (M2M)/IoT markets, based on filings to the Commission on MVNO arrangements, there has been virtually no MVNO activity that would provide additional competitive retail options to Canadian consumers.” Despite the change in position, the CRTC said it believes such measures should be temporary, and that regulatory intervention should eventually be replaced by a market-based approach. “Accordingly, the Commission’s preliminary view is that the national wireless carriers’ mandated wholesale MVNO access should be in place for a limited amount of time and be subject to a phase-out period as market forces take hold,” it said. It also doesn’t mean that the CRTC will immediately reverse its view that WiFi-based MVNOs have to be given access to permanently roam on other companies’ networks. In a separate decision Thursday, it said TNW Wireless Inc. isn’t entitled to access the wireless network of another provider for its WiFi-based wireless service. The CRTC is asking for comments on how a wholesale MVNO service should be implemented, including “whether there should be a requirement for an MVNO to own a minimum amount of facilities in order to be eligible,” and whether it should set a wholesale rate for access. The review will also look at whether new regulatory measures will be needed to “reduce barriers” to the deployment of infrastructure as telecoms roll out 5G networks. Telecoms have asked the federal government to make it easier to access “passive” infrastructure such as roads and utility poles by giving the CRTC regulatory oversight over infrastructure. It’s also an issue that's been raised during the government’s ongoing review of the telecom and broadcast acts, where electrical utilities and municipalities are opposing such proposals. The CRTC itself asked the government to vest one regulatory body with the power to be the ultimate decider on disputes over access. As telecoms deploy 5G networks, they will have to “negotiate with a variety of stakeholders to secure adequate access to fibre facilities, rights of way, and small-cell sites,” the CRTC said in its consultation document. “It is therefore important to assess whether there are barriers to the introduction of new technologies by carriers, and the extent to which regulatory intervention by the Commission may be required to support investment and competition in the evolving marketplace.” It asked for comment on “whether any further regulatory measures, of those currently available to the Commission, are required to reduce barriers to the deployment of cellular infrastructure.” Comments are due May 15. — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Kyle Duggan at kduggan@thewirereport.ca

CRTC changes position on MVNOs, proposes mandated access

News | February 28, 2019

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CRTC changes position on MVNOs, proposes mandated access

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