Fibre needed for viable third-party access framework, CRTC hears

If Canada is to have a viable wholesale market, high speed access needs to rely on fibre to the premises (FTTP), a CRTC panel was told Monday. It was the first day of a week-long proceeding into the future of the high speed access framework. The morning began with the Competition Bureau presenting its findings. It discovered that while third-party access through cable is increasing, that access via fibre is actually declining across the country. “Taken together, the bureau believes that this decline has been principally caused by the lack of wholesale access to FTTP networks rather than a declining demand for internet delivered over ILEC networks or for internet provided by wholesale based competitors,” deputy commissioner Krista McWhinnie told the panel. The share of the internet market currently served by incumbent telecoms has gone up over the past few years, data analyzed by the bureau discovered. The deputy commissioner urged the CRTC to take a long view of competitiveness. “Competition among internet providers is not only about price and service quality in the short run but also about building and improving internet networks in the long run,” she stated. “The bureau recognizes that both forms of competition are important and each should be promoted.” The commission should not be swayed by ILEC arguments that regulation will lead to a decline in infrastructure investment, the Public Advocacy Interest Centre and OpenMedia testified in a joint presentation. The established companies have maintained market share as they switch their networks from copper to fibre. “PIAC and OpenMedia submit that due to the presence of disaggregated access and tariffs in the market and some ISPs that do rely upon them, the commission can and should mandate both aggregated and disaggregated wholesale FTTP access at reasonable rates for a long and carefully monitored transition period,” PIAC executive director John Lawford said. Competition is waning as small players get bought out by the larger firms. “The wholesale and retail market for broadband has already been decimated in the last 18 months by numerous acquisitions of independent ISPs by incumbents,” Lawford asserted. He dismissed threats to stop broadband rollout as “bullying” and said the ILECs are only concerned with pleasing bond- and shareholders rather than the general public. The incumbents did receive some support from a Toronto-based telecom and broadcasting consultant. Director of broadband and regulatory policy for Intel Corp. John Roman, said he had rewritten his presentation following the announcement of strict budgetary measures by BCE Inc. He called on the CRTC to abandon its policy of forbearance in the internet market. We do not need more ineffective competitors in the marketplace, he added. “How are Bell, and supposed to make a reasonable profit in a national monopoly when the regulator keeps interfering?,” he asked. “Commissioners, stop trying to fight gravity and work with it to everyone’s benefit.” The current policy is moving backwards, Roman stated. Canada is properly served by three large national telecom players and several small regional actors. The various ILECs will be presenting their arguments before the panel Tuesday, Wednesday and Thursday. –Reporting by Paul Park at ppark@thewirereport.ca.

Fibre needed for viable third-party access framework, CRTC hears

News | February 13, 2024

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Fibre needed for viable third-party access framework, CRTC hears

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