CRTC grants ISPs access to Bell building fibre for a fee

The CRTC is granting CloudWifi Inc. competitor access to BCE Inc.’s service wires in multi-dwelling units (MDUs), allowing internet service providers (ISPs) access the telecom’s wires — copper or fibre — for a “reasonable fee.” It is the first time the CRTC is extending those access rights to ISPs, which don’t have to be a competitive local exchange carrier (CLEC, or home phone company) or an exempt broadcast distribution undertaking (BDU, or TV company). Kitchener-based Cloudwifi was using Bell’s inside wires without permission in a Toronto condo, and initiated a Part 1 application in September asking the CRTC to maintain its ability to do so. “The Commission considers that it would be reasonable for carrier ISPs to have access to MDUs, as well as to LECs’ in-building wire in MDUs, without having to become registered CLECs,” the CRTC ruled on Friday, saying the decision will “increase consumer choice.” But the regulator clarified that ISPs wanting access to those in-building wires must request such access and must pay a “reasonable fee.” The latter rule satisfies calls by the Canadian Network Operators Consortium (CNOC), a group representing small ISPs, which proposed in an intervention that there be a cost-recovery mechanism to allow owners of the facilities to get their money back for that access. The ruling, which is specific to granting ISPs access to Bell’s facilities, does not currently give all facilities-based ISPs access to the wires owned by carriers and BDUs. But the CRTC said it is of the “preliminary view” that all ISPs and “potentially” all telecommunications service providers must allow access to inside wires, and is consulting on whether those types of companies should be permitted to use those facilities. In opening a proceeding on the matter, it is asking those carriers to submit why they shouldn’t allow access. Those comments are due August 5. In the meantime the CRTC, citing public interest reasons, said Cloudwifi’s existing customers will be allowed to continue using the inside wires -- at no cost. “It would not be in the public interest for Cloudwifi’s existing customers to be disconnected while Bell Canada files amended tariff pages,” the decision said, adding Bell must apply its existing in-building wire rates to carrier ISPs, including Cloudwifi, on an interim basis, effective immediately. Bell currently charges $0 per subscriber per month for copper access, which will be the interim rate for fibre, the CRTC said. The decision compels the Montreal-based company to come up with rates to charge a competitor to use its in-building fibre lines within 30 days of the decision. “We’re super pumped over here,” Gary Kenning, founder of CloudWifi, said in an email, calling the decision “historic.” “We can keep doing what we’ve been doing and growing as we’ve been growing and Bell is not allowed to hold us back.” While Friday’s ruling denied Cloudwifi’s attempt to use broadcast and phone company regulations to get access the wires -- the company registered as an exempt BDU to access the wires, but the CRTC ruled Friday that under certain rules, it still required permission and a fee for access -- Kenning said his company won on the “most important and significant” point that “impacts the entire industry”: universal access by ISPs. “The Commission also considers that requiring carrier ISPs that do not otherwise intend to provide local exchange service to become registered CLECs to connect with LEC facilities in MDUs creates an unnecessary regulatory burden on those ISPs and on other LECs,” the CRTC said. Up until recently, the CRTC’s focus on in-building wires in MDUs has been largely on local voice service. “Denying access would not ensure the technological and competitive neutrality of network interconnection arrangements and would impair competition from new technologies,” the decision noted. Bell spokesman Marc Choma said in an email that the company is “studying the decision.” The Kitchener-based company, which uses wireless technology to bring internet to buildings, requested in its initial CRTC application that the regulator rule that Bell cannot interfere with Cloudwifi’s customers’ use of the wires at two locations -- North York and Kitchener. Bell opposed Cloudwifi’s claim, though not on the basis of its definition of an inside wire, but instead saying Cloudwifi isn’t entitled to access Bell’s inside wire because it’s not designated by the CRTC as a CLEC, its application said. Cloudwifi argued that it doesn’t make sense to allow providers of landline phone service, “which are rapidly becoming obsolete, to access the wire at the demarcation point yet to disallow access for internet service providers which are vitally important for Canadians.” Kenning said Friday’s decision brings the regulations around in-building wiring into the 21st century. “This is a step in the right direction to increasing competition and consumer choice. “This decision is a clear win not only for Cloudwifi, but for consumers across this country.” — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

CRTC grants ISPs access to Bell building fibre for a fee

News | June 26, 2019

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CRTC grants ISPs access to Bell building fibre for a fee

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