Canada’s telecommunications regulator, the CRTC, has mandated that major internet providers with high-speed fibre optic networks must allow competitors access to their infrastructure for a fee, starting in February. This decision, announced in a recent CRTC news release, is aimed at enhancing competition and providing Canadians with more choices for high-speed internet at lower prices.
The CRTC initiated a public consultation in 2023 to address concerns over declining competition in the internet service industry. The findings revealed a worrisome trend of reduced competition, leading to limited options for consumers. The CRTC believes that this new regulation will help address monopolistic practices and make internet services more affordable for Canadians.
What Does This Mean for Saskatchewan?
In Saskatchewan, three major high-speed internet providers dominate the market: SaskTel, Rogers, and Access Communications. With the CRTC’s new directive, smaller internet providers like Access Communications will be allowed to use SaskTel’s fibre network for a fee, potentially increasing competition in the province.
The CRTC plans to set the access fee for these competitors by the end of the year. However, the success of this initiative hinges on getting the pricing right. Jason Childs, an economics professor at the University of Regina, warned that incorrect pricing could either fail to reduce consumer costs or hinder network maintenance and expansion—both unfavourable outcomes.
This move follows a similar decision by the CRTC last year, which allowed competitors in Ontario and Quebec to use the fibre networks of large telephone companies. However, this did not significantly boost competition, raising concerns about the effectiveness of the new regulations.
SaskTel’s Concerns and the Future of Fibre Expansion
SaskTel has expressed strong opposition to the new regulations, arguing that they could discourage investment in expanding fibre networks. In its final statement in April, SaskTel described potential competitors as “parasitic to the system,” warning that the regulations might lead to a slowdown or even a retreat in network expansion.
The new CRTC guidelines only apply to existing fibre networks. Any new fibre built by large telephone companies will be accessible to competitors after a five-year period, providing these companies with an opportunity to recoup their investments more quickly.
Despite this, the future of fibre expansion in Saskatchewan remains uncertain. Childs pointed out that SaskTel and other telecom giants will need to weigh the benefits of investing in fibre networks against the potential risks and reduced profits due to increased competition.
Additionally, emerging technologies like Starlink’s high-speed satellite internet could further influence SaskTel’s decisions regarding fibre expansion, potentially leading to a stall in the growth of fibre optic networks in the province.
As the situation unfolds, it remains to be seen how these changes will impact Saskatchewan’s internet landscape and whether they will indeed lead to better services and lower prices for consumers.
