Prime Highlights:
- Ottawa retains CRTC’s policy allowing resale of internet on rival networks.
- Telecom giants are symbols of long-term investment and competition threat.
Key Fact:
- Bell cut back $500M of investments from the effect of the policy.
- Legal appeals challenging the decision remain at the Federal Court.
Key Background:
In a major nonsupervisory decision, the Canadian Radio- TV and Telecommunications Commission( CRTC) reaffirmed its noncommercial internet access decision, allowing peremptory telephone companies similar as Bell, Telus, and Rogers to resell internet services on top of challengers’ fibre- optical networks. The move, aimed at lowering the cost of the internet and enhancing consumer choice, was saluted warmly by Industry Minister Mélanie Joly, who stated that it aligns with the civil government’s vision of making the internet cheaper for Canadians.
Nonetheless, the action has evoked strong pushback from Canada’s largest telecom players. Bell, one of the strongest voices of criticism, is of the view that the policy discourages long-term network infrastructure investment. Bell CEO and President Mirko Bibic felt that the ruling does not go far enough in incentivizing companies for the cost and risk of creating network infrastructure. Consistent with this, Bell had previously reduced its 2025 investment strategy by $500 million and cancelled fibre expansion projects in Canada.
Rogers Communications also mirrored Bell’s exasperation. The company’s PR person, Sarah Schmidt, condemned the move as a theatrics policy turnaround, foreseeing that it would lead to less capital investment, reduced employment in network construction, and ironically, higher internet rates brought about by diminished competition and motivation for innovation.
The backlash spilled over into the courts as telecom operators Cogeco and Eastlink, based locally, are asking for a Federal Court of Appeal. President of Cogeco Frédéric Perron warned that the decision would come to a halt in terms of innovation, silence consumer choice, and kill the digital future of Canada in the economy. He said that a balanced policy would help with long-term investment in networks and fair pricing for consumers.
Though there is heightened tension, the CRTC maintains that its internet wholesale model for ensuring a balance of creating competition and safeguarding investment is in place. It argues that in opening up the existing fibre infrastructure to access, there is scope for new entrants to emerge into the market in a short period and offer cheaper services—promoting short-term innovation while allowing consumers to benefit from increased choice and price competition.
Meanwhile, Bell is looking for fresh opportunities for growth outside Canada. It recently completed the acquisition of U.S.-based Ziply Fiber for $5 billion, adding 1.4 million locations to its network and targeting 8 million deaths in the U.S. through its Network FiberCo business.
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