CRTC sets out MVNO timelines, negotiations to be concluded by Aug. 7

The CRTC has announced that it expects incumbents to have their mobile virtual network operator (MVNO) service "operational and ready for use" no later than June 8, and agreements should be in place with regional providers availing of the service by Aug. 7. The regulator established the timeline in a Tuesday decision which also finalizes the MVNO tariff notices for BCE Inc., Telus Corp., Saskatchewan Telecommunications Holding Co., and Rogers Communications Inc. The CRTC's timeline comes just over two years after the commission elected to go with a limited MVNO model, restricting mandated access to incumbent wireless networks to regional providers that own a level of spectrum assets, and restricting the period of mandated access to seven years. "The CRTC expects that regional competitors will start selling plans in new parts of Canada shortly after these agreements are in place. The CRTC will ensure that deals are reached quickly so that Canadians have more choice of cellphone services," the regulator wrote in a Tuesday statement accompanying the decision. “The CRTC is taking action to promote competition in the cellphone services market. Today’s decision builds on our efforts to ensure that Canadians benefit from lower prices and more choice for telecommunications services,” CRTC chair Vicky Eatrides said in a release. In a Tuesday morning note, RBC Capital Markets analyst Drew McReynolds wrote that it is possible that negotiations over agreements between incumbent and regional MVNO hopefuls eventually head to final offer arbitration at the CRTC, which would delay timelines beyond the regulator's Aug. 7 deadline. Nevertheless, the timeline laid out by the CRTC could see retail MVNO services as soon as the second half of this calendar year, McReynolds wrote, with well capitalized players Cogeco Inc. and Quebecor Inc. being the likely early movers. In addition to laying out the timelines, the CRTC also adjudicated a number of disputes that had arisen in the tariff filing process. In one, the Independent Telecommunications Providers Association had argued that Bell's definition of the term "eligible region" in a section of its tariff was too restrictive, and that Bell's definition was restricted to a local telephone legacy spectrum license (TEL) area, rather than the tier 4 service area in which the license is located. Because the older TEL licenses do not map exactly over the newer tier 4 license areas, there can exist discrepancies between the two definitions when it comes to providing MVNO access. The ITPA asked the CRTC to direct Bell to alter its tariff language to make it clear that holders of TEL licenses were eligible for coverage in the entire tier 4 areas if the two coverage areas don't map neatly onto one another. The ITPA also asked for the inclusion of language ensuring that if a given eligible wholesale customer holds a local telephone license that is spread across two or more tier 4 service areas, that customer can request MVNO access services in all of the tier 4 areas over which the TEL license is spread. The commission ruled that Bell's tariff language was appropriate, and the MVNO terms set out in the commission's Oct., 2022 decision were clear enough: incumbents can easily discern the geographic boundaries of the older TEL areas and provide MVNO service to customers within them, and not in the entire tier 4 area in which the TEL license holder sits. In Tuesday's decision, the CRTC wrote that its initial MVNO framework "specified that the intent of the MVNO access regime is to allow regional wireless carriers to offer service where they have spectrum coverage but haven’t yet built infrastructure." "The ITPA’s interpretation would be counter to that intent, as it would grant MVNO access in areas where a regional carrier does not have spectrum coverage," the regulator wrote. In another eligibility dispute, Bell and SaskTel had defined an eligible MVNOs as being a "full member" of the Global System for Mobile Communications Association (GSMA), while Rogers' said a MVNO "should" be a member. The ITPA objected, and called for the definitions to be removed. The CRTC determined that the membership is not required for MVNO access, as GSMA membership was not explicitly mentioned in the commission's 2021 framework. "Although most regional wireless carriers have GSMA membership, this requirement nonetheless adds a potential competitive barrier. In addition, it is worth noting that GSMA membership is not an industry requirement to operate a network," the CRTC wrote, and directed Bell, Rogers, and SaskTel to remove the stipulation from their tariffs. Cogeco objected to restrictions on the definition of "end user" from Bell, Rogers, and Telus that would restrict MVNO access from wearable devices. The commission agreed, and directed all three companies to modify language in their tariffs to be less restrictive. — Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca.

CRTC sets out MVNO timelines, negotiations to be concluded by Aug. 7

News | May 9, 2023

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CRTC sets out MVNO timelines, negotiations to be concluded by Aug. 7

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