The Trudeau government does not want to reverse a controversial decision by the Canadian Radio-television and Telecommunications Commission (CRTC) that canceled the reduction in wholesale Internet rates, used by independent providers.
In 2021, the CRTC has reversed the decline in wholesale rates announced in 2019. Internet wholesale rates are used by independent providers that connect to the network of large providers. The regulation of wholesale prices on the Internet is intended to promote competition.
The government follows the interpretation of CRTC who thinks that the decision in 2019 is tainted with a series of mistakes and that it is inappropriate to force its implementation, a senior official explained at a technical briefing on a draft law revising the instructions given by the government to CRTC. Lower rates for 2019, although advertised, have never been effective.
The decision of CRTC raised the ire of independent suppliers who saw it as an attack on competition. They claimed that the decision would lead to higher prices for consumers and weaken the ecosystem of independent suppliers.
The government adopted another decision of CRTC, while opening the door to exchange. The administrative court issued a decision allowing regional operators to lease access to the networks of major telecommunications companies in Canada, if they themselves have local frequency spectrum. The regulatory conditions surrounding this decision are still pending.
In the law, however, the federal government asks to CRTC adjust their approach if needed to the extent that the approach does not lead to more competition.
The owner of Videotron’s subsidiary, Quebecor, which wants to expand its activities outside of Quebec, could protect itself from the option to rent access to a competitor’s network. Cable company Cogeco, which is considering entering the wireless telephony market, is waiting to hear details about the regulatory conditions surrounding the decision. CRTC.
More bites for consumer protection
If he does not reconsider the decision of CRTC, the Trudeau government wants to give it more teeth when it comes to consumer protection. He will offer to do more to avoid sales practices not acceptable telecommunications companies.
The federal government formulated its requests in a draft decree, announced Thursday. The government said its proposals would encourage competition and affordability in internet and mobile telephony.
the CRTC is an independent administrative tribunal, but government instructions specify the direction of government telecommunications policy.
The proposed decree will come as President of CRTC, Ian Scott, announced on May 13 that he would step down at the end of his term in September. Canadians have until July 19 to comment on the order. It should be adopted this fall.
The law replaces the two previous ordinances enacted in 2006 and 2019. So the government hopes that having a single law will avoid conflicting interpretations.
Ottawa asked CRTC ng to strengthen the position of consumers in their interaction with Internet and mobile phone service providers. She asks him to pick it up additional measures to protect consumers against unacceptable sales practices.
It is also proposed to strengthen the Commission for Complaints for Telecommunications and Television Services (CCTS). Only 30% of Canadians are aware of its existence and the government wants to know more about it. The federal government wants CCTS giving more weight to the consumer’s opinion in its decisions.
Source: Radio-Canada
