TekSavvy challenges Cogeco’s network changes

TekSavvy Solutions Inc. lodged a formal Part 1 complaint with the CRTC against Cogeco Inc., to address its concerns about Cogeco's planned removal of facilities, potentially hindering competition and consumer choice in the telecommunications sector. “Should Cogeco’s planned changes be permitted despite the impact on consumers and competition, it would undermine the foundations of wholesale-based competition,” TekSavvy wrote in its Dec. 22 application. The dispute, made public Wednesday, revolves around Cogeco's intention to replace existing infrastructure with ethernet passive optical network (EPON) technology at specific locations, affecting dwellings on Francis Road in Burlington, Ont., and a multi-dwelling unit (MDU) in Windsor, Ont. “This application concerns whether a carrier that provides regulated wholesale services can remove the facilities that allow for competition and replace them with facilities that do not,” TekSavvy wrote. TekSavvy, primarily relying on regulated wholesale high-speed access (HSA) services, has accused Cogeco of attempting to remove competition by transitioning to EPON technology without providing alternative solutions for wholesale-based competitors like itself. The Chatham-based company argued to the regulator that Cogeco’s network change, scheduled for May 1, 2024, will lead to the denial of wholesale services to competitors at these sites. The complaint argues that Cogeco's actions would not only impact new customers but also lead to the disconnection of existing subscribers utilizing Hybrid Fibre Coaxial (HFC) and radio fluency over glass (RFoG) technologies. TekSavvy further contends that Cogeco's refusal to negotiate alternative arrangements for service continuity poses a threat to the competitive landscape. TekSavvy estimates that more than 500 business and residential addresses could face reduced consumer choice and competition due to these network changes. The filing suggests that the interim relief sought would cause minimal inconvenience to Cogeco. TekSavvy urges Cogeco to ensure there is no reduction in competitor access on its network by maintaining the existing infrastructure available to wholesale customers at all premises within the affected sites. This measure would be in effect until the CRTC issues a final decision either in response to TekSavvy's application or as part of the ongoing wholesale HSA consultation, granting competitors access to Cogeco's FTTP services. TekSavvy then proposes that Cogeco provides continued access to RFoG services over FTTP facilities on an aggregated basis. The RFoG services should be offered with current HFC speeds, and the rates should align with the existing aggregated HFC rates. This access is requested for all premises within the affected sites, regardless of their current service provider, until the CRTC reaches a decision on TekSavvy's application. TekSavvy suggests that Cogeco ensures continued access to EPON services over FTTP facilities on an aggregated basis. Similar to RFoG, EPON services should provide current HFC speeds at the prevailing aggregated HFC rates. This access is sought for all premises within the affected sites, irrespective of their current service provider, until the CRTC issues a decision. This is not the first time TekSavvy has found itself in such a situation. The complaint draws parallels to a 2016 case against Rogers Communications Inc., where the CRTC determined that replacing existing infrastructure with fibre facilities without providing access to competitors violated the Telecommunications Act. TekSavvy is urging the CRTC to apply the same principles from the previous decision to Cogeco's case and to enforce regulatory measures that preserve wholesale-based competition. The company emphasizes the urgency of the matter, requesting expedited interim relief to halt irreversible changes to Cogeco's network pending a thorough investigation. Cogeco's actions, if permitted, could set a precedent for similar upgrades by other carriers, potentially undermining the competitive landscape in the telecommunications industry, TekSavvy argued. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Phalen Tynes-MacDonald at pcreed@thewirereport.ca

TekSavvy challenges Cogeco’s network changes

News | January 10, 2024

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TekSavvy challenges Cogeco’s network changes

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