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Canada’s regulator gets tough on wholesale charges

The Canadian Radio-television and Telecommunications Commission (CRTC) is setting revised interim rates for existing wholesale high-speed access services that the large cable and telephone companies charge competitors. The CRTC had directed the large companies to file new tariffs for these aggregated wholesale high-speed access services after it launched a proceeding to examine issues associated with these rates. It was not expecting deviation from the established costing principles and methodologies in the context of the current proceeding.
But after analysing the tariff applications, the CRTC is of the view that the rates proposed by certain large companies were not just and reasonable and had to be revised downwards and is ‘very concerned’ that certain large companies have not conducted their cost studies in accordance with well-established costing principles and methodologies. “Competitors that provide retail internet services to Canadians using wholesale high-speed services must have access to these services at just and reasonable prices,” says Jean-Pierre Blais, CRTC chairman and CEO. “The fact that these large companies did not respect accepted costing principles and methodologies is very disturbing. What’s even more concerning is the fact that Canadians’ access to a choice of broadband internet services would have been at stake had we not revised these rates. As always, we strive to create a dynamic competitive telecoms market for Canadians.” Read more

  • Thursday, 03 November 2016

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