CRTC denies TekSavvy application alleging undue preference from Rogers-Quebecor OTAs

The CRTC denied an application brought forward by TekSavvy Solutions Inc. alleging that the array of off-tariff agreements (OTAs) between Rogers Communications Inc. and Quebecor Inc. constitute a violation of the undue preference prohibitions in the Telecommunications Act. “In the case of agreements between and Videotron, the discounts at issue are similar to those available under other existing off-tariff agreements, and Videotron has indicated its willingness to offer the same terms and conditions to TekSavvy and other competitors,” the CRTC wrote in its Friday decision. In a Part 1 application filed with the regulator in January, TekSavvy argued that the wholesale arrangements between Rogers and Quebecor’s Videotron – meant to help the latter launch its western brand following its acquisition of Shaw’s Freedom Mobile – constitute an “undue preference” and thus a violation of section 27(2) of the Telecommunications Act. Complainants need only to establish a prima facie case in instances of undue preference since the terms and conditions of commercial agreements remain confidential. In TekSavvy’s case, the company adduced evidence that the Competition Tribunal described the arrangements between the parties as “very favourable.” The arrangements included discounted roaming on Rogers’ networks, multi-year access to fibre backhaul for all of Freedom’s cell sites, a multi-year discounted TPIA arrangement, and combined spectrum to launch Freedom’s 5G service. This set of arrangements, TekSavvy wrote, is “not arrived at through negotiations based on natural market forces, but is instead an effort by Rogers to remove regulatory hurdles to its acquisition of Shaw.” TekSavvy requested “relief from the underlying causes that enable unduly preferential OTAs; a review of all the incumbents’ use of OTAs; and alternative interim relief from particular OTAs.” TekSavvy is in direct competition with VMedia, which Videotron has acquired, and purchases those same wholesale HSA services. The commission, in its determinations, acknowledged that there was a preference, however, it found that the preference was not undue. “The commission find that the discounts associated with the wholesale services being offered pursuant to the identified off-tariff agreements are within the norms found elsewhere in the industry and appear to be justified by the identified factors,” the CRTC wrote. The regulator noted that a preference can be undue if another provider were denied a comparable OTA, however, in this case, there is no evidence of a similar offer being denied. “Videotron indicated its willingness to offer TekSavvy and other interested ISPs the same conditions contained in the off-tariff agreement with , provided that the related requirements are met,” the commission concluded. TekSavvy’s complaint also took aim at BCE Inc.‘s arrangements with its newly acquired subsidiary Ebox Inc. Bell, TekSavvy argued, is offering “wholesale FTTP services that are not also available to competitors and for which there is no wholesale tariff.” However, the CRTC concluded that given Ebox no longer exists as a separate corporate entity there are no off-tariff agreements in place to support an analysis of undue preference. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca.

CRTC denies TekSavvy application alleging undue preference from Rogers-Quebecor OTAs

News | September 15, 2023

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CRTC denies TekSavvy application alleging undue preference from Rogers-Quebecor OTAs

News | September 15, 2023

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