Relocation of Eastlink’s TPIA point of interconnection chance for gov. to redeem itself: PIAC

The Public Interest Advocacy Centre (PIAC) and the Competitive Network Operators of Canada (CNOC) want the federal government to “urgently” direct the CRTC to order Bragg Communication Inc.’s Eastlink to relocate, at its sole cost, its Nova Scotia third party internet access (TPIA) Point of Interconnection (POI) to a more central location in Halifax so that more competitive options are available for the supply of transport. “We submit that this is a chance for the government to redeem itself and take a step towards advancing the consumer interests by promoting wholesale competition,” PIAC wrote. PIAC and CNOC weighed in on a dispute between Eastlink and City Wide Communications Inc. in separate letters sent to the Governor in Council Monday after the latter company submitted a petition requesting the same remedies. “City Wide’s petition raises important anti-competitive concerns that call for the government’s immediate attention, particularly in these challenging times with the rising cost of living that has made it harder for consumers to pay the exorbitant internet fees,” PIAC wrote. In the interim, the commission should be forced to establish reasonably regulated rates for Eastlink’s transport services to Pennant Point, N.S., PIAC and CNOC wrote. In March the commission denied an application by City Wide requesting the CRTC order Eastlink to move its TPIA POI to downtown Halifax. The commission determined that Eastlink’s TPIA point of interconnection in Pennant Point – located 30 km from downtown Halifax – subjected City Wide to a disadvantage but that it was not undue or unreasonable. Last month, City Wide escalated its grievances to the Governor in Council, arguing that the commission erred in its determinations. City Wide argued in the petition that the rate of growth of its customer base has been “declining significantly and persistently in recent years,” hindering its ability to invest in its own networks and to sustain affordable services in Nova Scotia. PIAC reiterated City Wide’s arguments that a remote TPIA POI is adding transportation costs thereby increasing barriers to competition and hurting consumer choice. “It also sets a bad precedent that may result in other incumbents setting up their TPIA POIs at locations that suit them but are remote and difficult and/or expensive for competitors to reach,” PIAC wrote. PIAC further argued in its letter that this decision could be a chance “for the government to redeem itself and take a step towards advancing the consumer interests” after it had failed to reverse the CRTC’s wholesale rates decision. Instead, the government issued a policy direction as a response to the trio of petitions asking cabinet to reverse course on dramatically lowering access rates for wholesale third-party internet providers. “Which we acknowledge has some important and timely additions, but lacks the authority of a direct and clear order that was expected from the government to advance competition and consumer choice in Canada,” PIAC wrote in its Monday letter. “PIAC considers this to be an important opportunity for the government to reflect on its recent policies and decisions, and take a strong and clear stance that shows its values align with those that promote competition and consumer choice.” PIAC said the CRTC’s decision in the Eastlink-City Wide dispute is another anti-consumer policy and another signal that the commission prefers facilities-based competition. PIAC argued that a series of acquisitions over the past several months is proof that the CRTC’s decisions are harming the survival. In February BCE Inc. announced that it acquired Quebec-based internet, telephone and television service provider Ebox Inc., followed by Quebecor Inc. which purchased independent service provider VMedia Inc., and most recently Bell announced it was expanding with the acquisition of Distributel Ltd. The latter has “arguably been an ultimate blow to this wholesale market,” PIAC wrote. “This all will inevitably result in the complete wiping out of this already weakened wholesale-based industry. All these acquisitions signal a deeper problem that is an unworkable wholesale regulatory framework, which has historically and unfairly favoured incumbents over competitors, with the latter either forced to shut shop or join one of the incumbents.” PIAC and CNOC also supported City Wide’s request to mandate the CRTC to initiate a proceeding to examine the need to regulate the supply of transport services throughout Canada arguing that “such transport headwinds presently are being experienced by other competitive providers.” CNOC, for its part, pointed to what City Wide says are the higher costs of doing business with Eastlink because of its POI location. Referencing City Wide's petition, CNOC wrote that Eastlink's transports prices are 159 and 486 per cent higher than that of equivalent suppliers in Halifax, which has in turn increased City Wide's costs by as much as 12 per cent. "This level of inflated pricing and the corresponding significant impact on cost structure would have deleterious effects on competition in any retail markets where competitive service providers operate," CNOC wrote in its own letter. "We firmly agree with City Wide that these anticompetitive pressures would constrain a competitor’s ability to maintain a brand image as a provider of affordable Internet services." CNOC's letter also pointed to this year's edition of the department of Innovation, Science, and Economic Development's annual pricing report – conducted by Wall Communications Inc. and commonly known as the Wall report – which showed higher broadband prices in thee of the four measured categories in Nova Scotia specifically, and added that City Wide's requested relief is "urgently required to help address the cost of living crisis in Nova Scotia." – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca, with files from Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Michael Lee-Murphy

Relocation of Eastlink’s TPIA point of interconnection chance for gov. to redeem itself: PIAC

News | September 12, 2022

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Relocation of Eastlink’s TPIA point of interconnection chance for gov. to redeem itself: PIAC

News | September 12, 2022

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