Rogers defends bulk MDU deals as competitive practice

In an answer submitted to the CRTC last Thursday, Rogers Communications Inc. defended its multiple dwelling unit (MDU) bulk agreement practices, under fire by Beanfield Technologies Inc., saying it is good for competition and any changes should require broader consultation. Echoing the arguments heard by developers and other incumbent telecommunications service providers (TSPs), Rogers said bulk deals are good for competition in both the telecom and housing market and criticized Beanfield for going after a practice it argues has been recognized and endorsed by the commission for decades. The company says the MDU access condition pertains to physical access to facilities, and that bulk deals, including exclusive marketing arrangements, do not violate those rules. Rogers also argued that Beanfield’s application is “especially inappropriate” because of the implications that banning MDU bulk deals could have on MDU residents, developers, and condo corporations, saying that such a decision would require a broad public consultation of everyone involved, rather than filing against a single telecom. “Any TSP can seek an access arrangement in MDUs that have a bulk billing arrangement with Rogers, to serve end-customers in the building,” said Rogers, claiming that its arrangements do not have “any financial and other incentives for developers, building owners or condominium corporations to restrict access to end-users by other TSPs.” Cloudwifi Inc. claims it has seen significant cash offers to developers from both BCE Inc. and Rogers for signing bulk agreements. The company alleged that because of such offers, it has seen developers pull out of deals with Cloudwifi to go with Rogers instead. “The reason bulk deals have become more common for broadband services in recent years is that this type of billing arrangement is very popular among residents of MDUs,” said Rogers. Claiming that bulk deals are priced lower than regular retail rates, cutting costs for end-users; have a single point of billing, making it more convenient for residents and TSPs; and allow for immediately available communications amenities, making buildings more enticing to potential renters or buyers. “Developers are seeking the most value at the lowest cost – meaning bulk billing arrangements must be very competitive, to the benefit of end-users in MDUs,” said Rogers, claiming that the bidding process is open to any TSP and highly competitive, and those that succeed provide the most compelling value. Competition remains even at the end of a bulk contract, argued Rogers, addressing the accusation that incumbents hold an advantage over competitors looking to enter the MDU. “There is no guarantee that a bulk contract will be renewed” and TSPs must again demonstrate the value of their offering, it wrote, claiming that infrastructure costs are not recouped over the first term and competitors will have to make the same investment decision as the incumbent did when it first set up its bulk services. Rogers also noted Beanfield’s complaints that bulk deals are often first executed with developers and then passed onto the condo corporation. It rebutted with claims that such deals must be binding on the corporation to ensure buyers receive the benefits they are expecting. It added that the service terms and fees of those agreements are fully disclosed, echoing BCE Inc.’s argument that people have the freedom to choose which MDU to purchase or rent from. – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

Rogers defends bulk MDU deals as competitive practice

News | October 30, 2023

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Rogers defends bulk MDU deals as competitive practice

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