CRTC changes terms of MVNO rules to include enterprise and IoT customers

The CRTC has expanded the terms of its mobile virtual network operator (MVNO) regulations to include enterprise and Internet of Things (IoT) clients. The commission issued the announcement on Wednesday, Oct. 9. In April 2021, the regulator made its initial ruling. It ordered incumbent telecoms to sell access to their mobile networks to some regional service providers, but restricted MVNO status to players that already own spectrum and plan to roll out their own networks. Companies granted access were given seven years following a project rollout in which to build their grids. Until then, they can piggyback on the established networks of the incumbent carriers–BCE Inc., Telus Corp., and Saskatchewan Telecommunications Holding Corp., and competitive carrier Rogers Communications Inc. In its latest ruling, the CRTC said it is "expanding the scope of the service" by allowing regional wireless carriers to use wholesale MVNO access to serve enterprise and IoT customers. The CRTC has found that the incumbents exercise market power in most markets and there is not enough competition in the enterprise and IoT markets. There are high barriers for entry for the competitors and there are challenges in switching providers. This gives the established telecoms undue preference, the decision states. With the updated decision, the established carriers – Bell, Telus, SaskTel, and Rogers – have until Nov. 8 to issue amended tariff pages to incorporate the changes to the terms and conditions of their current contracts. This will not affect existing agreements between the big players and their smaller competitors nor does it have an effect on the final offer arbitration decisions, the CRTC said. It will be up to the competitors to decide how to take advantage of the expanded rules. Some may wish to renegotiate immediately, the commission suggested, while others will want to wait until their current agreements are coming to an end. The CRTC issued the terms and conditions of the MVNO rules two years ago. An appeal to cabinet by Data On Tap Inc. seeking to have the 2021 rules overturned was turned down by the governor in council in 2022. Data On Tap was upset with the provisions that required spectrum to be owned and networks built out. Its position was endorsed by competitive carrier TekSavvy Solutions Inc. and by the Competitive Network Operators of Canada. In July 2022, Xplore Inc. shuttered its xplore Mobile operations, blaming delays at the commission in its MVNO process for the inability to gain a foothold in the wireless marketplace. Cogeco Inc. has indicated it wants to become an MVNO but does not have a specific date for launch. Freedom Mobile, a subsidiary of Quebecor Inc., started operations on Bell networks last month. ppark@thewirereport.ca

CRTC changes terms of MVNO rules to include enterprise and IoT customers

Telecom |
By Paul Park
| October 9, 2024

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CRTC changes terms of MVNO rules to include enterprise and IoT customers

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