The CRTC has ruled steep reductions in regulated access and capacity rates.
Background: In Canada, large telephone and cable companies must provide access to their networks to competitors under rates, terms and conditions that are set by the regulator CRTC. Regulated wholesale rates relate to two components: capacity and access. In October 2016, the CRTC set revised interim rates for aggregated high-speed access services for Bell Canada, Cogeco, Bell MTS, Rogers, SaskTel, Shaw, Telus, Videotron and Eastlink, after it found those filed by the companies to be “unreasonable”.
How do the rates change? The final rates announced on 15 August 2019 are lower than the interim rates of 2016, and retroactive to the date they were set back then. The monthly capacity rates are reduced between 15% and 43% compared to the 2016 interim rates. Access rates are also reduced between 3% and 77% lower than the interim rates. Such differences are due to the variation across regions.
Next steps: Operators will now have to adjust to the rates ruled by the CRTC. The regulator will soon rule on the rates for the regions of Ontario and Quebec.
