Ottawa: The Canadian Radio-television and Telecommunications Commission (CRTC) yesterday set final wholesale rates that are lower than current interim rates.
Wholesale rates are paid by competitors who access the existing high-speed access networks of the large cable and telephone companies.
The final rates announced yesterday are lower than the interim rates and retroactive to the date they were set in 2016. The monthly capacity rates are 15% to 43% lower than the interim rates. As for the access rates, they are 3% to 77% lower than the interim rates.
“As the demand for faster broadband speeds grows, we are putting measures in place to ensure Canada’s Internet market remains dynamic. The final rates we set …will foster increased choice at more affordable prices while encouraging a more robust and competitive marketplace across Canada,” said Ian Scott, Chairperson and CEO of the CRTC.
Quick Facts
To foster competition in the broadband Internet market, large telephone and cable companies must make available parts of their networks to competitors under rates, terms and conditions that are set by the CRTC.
Wholesale rates consist of two components: capacity and access. The capacity rate refers to a monthly charge for the data used by the competitor’s subscribers and the access rate pertains to the cost to connect to the large cable and telephone companies’ networks.
In 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.
Under the CRTC’s policy, large telephone and cable companies must provide access to wholesale high-speed access services throughout their region and transition this access towards a new regime (disaggregated high-speed access).
The decision on final rates, terms and conditions for disaggregated high-speed access in Ontario and Quebec is forthcoming.