Ottawa Rejects Bell’s Attempt to Block Internet Competition

The federal government has upheld the CRTC’s decision to grant smaller internet providers access to the high-speed fibre networks of Canada’s largest telecom companies—Bell, Rogers, and Telus. This ruling aims to foster a more competitive internet market and provide affordable options for consumers across the country.

Bell Canada had urged the government to reverse the CRTC’s decision, arguing that it would hinder their ability to expand their internet networks. However, the federal government has rejected Bell’s request, directing the CRTC to reconsider one aspect of the ruling—specifically the restriction that prevents the Big 3 telecoms from accessing wholesale fibre services.

Ottawa believes that allowing smaller regional and independent providers to utilize the networks of major telecom companies will enhance competition and improve access to high-speed internet, particularly in underserved areas such as rural and Indigenous communities. This strategy aims to give Canadians more choices for internet services, potentially driving prices down.

On Wednesday, François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, confirmed that Bell’s appeal had been denied. The announcement came just a day before Bell’s third-quarter earnings report, which revealed a significant $1.2 billion loss for the company.

“The Governor-in-Council is declining Bell Canada’s petition to rescind or alter the decision, and is instead referring it back to the CRTC with instructions to reconsider the restriction on the three largest service providers—Bell, Rogers, and Telus—from accessing wholesale fibre services,” said Champagne.

Champagne further emphasized the importance of wholesale access as a proven regulatory tool to foster competition. “Wholesale access to fibre networks is essential for improving competition. The CRTC’s decision is part of its ongoing review of Internet competition, and it is crucial for ensuring more accessible services for Canadians,” he added.

While the CRTC’s ruling remains in effect, concerns about the new interim rates for wholesale internet services have arisen. These rates are reportedly higher than retail prices, making it financially unviable for smaller ISPs to resell internet services. As a result, Quebecor announced that Freedom Mobile would abandon its plans to launch internet services on the wholesale networks of Bell, Rogers, and Telus.

We expect that some smaller internet providers will decide to resell fiber plans from major companies by the end of this year once the rates are released.