Cablecos, Telus join Bell in petition to government on wholesale rate cut

Wednesday saw a flurry of legal moves to overturn a CRTC decision that cut the rates wholesale internet resellers pay for bandwidth from the incumbents, as BCE Inc., Telus Corp. and the country’s major cable companies filed three separate petitions to the governor-in-council asking it to reverse the decision, and Telus doubled up by also filing a review-and-vary application with the regulator. Bell says in its own petition that the CRTC order has “now reached the point that the rates are below our costs,” which has forced the incumbents to cut investments and, citing Quebecor Inc.’s case, revoke its gigabit option. Bell added in its reasoning that the resellers -- having increased their market share over the years -- are thriving in the market, which makes unjustifiable the reduction in rates by up to 82 per cent in some cases, Bell said. “Our primary request is that the Governor in Council restore the wholesale rates that were in place immediately prior to the issuance of the Order, with no retroactive effect,” Bell said, adding the rates retroactive to 2016 will cost the incumbents over $300 million alone. Later Wednesday, Rogers Communications Inc., Cogeco Inc., Bragg Communications Inc., and Quebecor Inc. filed their own petitions, suggesting similarly that the new “indefensibly low” rates imposed by the CRTC means they won’t be able to recover the costs of their investments, “let alone earn a reasonable rate of return on the massive investments they have made and had intended to continue making in Canada’s wireline networks.” Telus also filed a separate petition Wednesday. The cable companies said the decision, if not repealed, will reduce their operating margins over time, suggesting investments to rural, remote and indigenous communities will become “unviable.” Also on Wednesday, the CRTC extended the deadline to December 13 for those interested to file a review and vary applications of the August 15 decision. The incumbents requested an extension to January 13. Telus didn't wait for that extended deadline, filing a review-and-vary petition on Wednesday. The decision is also currently being appealed in Federal Court, which has put in place a temporary freeze on the new rates. Bell said in its petition that the decision, if not reversed, will negatively impact rural broadband deployment, the government’s $1.7-billion universal service objective for high-speed broadband throughout the country, the green economy and 5G readiness. Canadian Internet Registration Authority president Byron Holland said in an emailed statement that, “We’re disappointed to see that Canada’s big internet service providers are once again appealing the CRTC’s decision. “We believe the Commission is on the right path with their decision. Fair wholesale rates are essential to ensure more Canadians can access competitive, high-quality internet services,” Holland added. “We encourage decision-makers at all levels of government to stay the course and help promote greater connectivity in Canada’s internet market.” Internet advocacy group OpenMedia, whose executive director Laura Tribe compared the incumbents' reaction to the CRTC's decision to a "tantrum" at a conference last week, used the same language in a press release on Wednesday. "The government has issued a new policy direction for the CRTC focusing on customers and affordability, and even more recently made promises during the election to bring more affordable Internet services to Canadians," Tribe said in the release. "Big Telecom’s move today completely ignores the way the winds are blowing," she added. "The time for affordable Internet in Canada is coming, and they need to get on board, or get out of the way.”

Cablecos, Telus join Bell in petition to government on wholesale rate cut

News | November 13, 2019

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Cablecos, Telus join Bell in petition to government on wholesale rate cut

News | November 13, 2019

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