CRTC calls for cheaper data-only wireless
DECISION BY THE CRTC IS A STEP IN THE RIGHT DIRECTION .
OTTAWA • Canada’s telecommunications regulator will not yet require the Big Three wireless carriers to open up their wireless networks to smaller players, but will make them come up with cheaper, data-only plans.
The Canadian Radio-television and Telecommunications Commission issued a decision Thursday on wholesale wireless services after Ottawa asked it to reconsider its rules in the name of affordability.
At stake was whether the regulator would force incumbents to open up their networks to smaller play- ers that offered service over WiFi first, but relied on the incumbents’ infrastructure when customers lost WiFi connections. These providers don’t build complete facilities-based networks. As it stands, the Big Three may enter into agreements to provide such services, but it is not mandatory.
The CRTC did not change its existing rules. Instead, it promised to launch a review of the entire wholesale mobile wireless framework within a year. It said this is necessary given deployment of 5G networks and limited resale competition since rules were announced in 2015.
It also lowered mobile wholesale roaming rates by between 44 and 99 per cent, and will retroactively decrease prices paid since 2015. (Incumbents are required to provide roaming services to other wireless carriers.)
To address calls for affordability before its review of the entire wholesale system, the CRTC launched a consultation on lower- cost, data-only plans. It will give BCE Inc., Telus Corp. and Rogers Communications Inc. one month to come up with such plans.
It will then publish their proposals for the public to comment.
“Canadians are demanding greater choice of innovative and affordable mobile wireless services,” CRTC Chairman Ian Scott said in a statement. “Today’s decision will see the introduc- tion of lower- cost data- only plans throughout Canada as well as reduced final rates for wholesale roaming. As a result, Canadians stand to benefit from more investment in wireless networks and innovative and reasonably priced services.”
The federal government said it will review the decision, which it expects will result in new, more affordable wireless plans.
“Today’s decision by the CRTC is a step in the right direction, but more must be done: true affordability can only come from true competition,” Innovation, Science and Economic Development Minister Navarro Bains said in a statement.
Consumer advocacy group Open Media criticized the decision as “frustrating” for Canadians fed up with high wireless prices.
Requiring network access “would allow smaller providers to enter the market with more affordable options, which is the key to encouraging competition and providing relief from The Big Three,” Open Media’s Katy Anderson said in a statement.
“Instead, today we saw more of the same: A lack of action to address affordability through competition.”
Officials from Telus, Rogers and Bell said the companies supported the CRTC’s decision to support facilities-based operators.
Telus said the wholesale rates were lower than desired, but have already been accounted for in its plans. It also noted it already offers low- cost plans through its flanker brand Public Mobile.
“Canada has some of the world’s fastest and most extensive telecommunications networks in large part because government and regulators have stayed true to long-standing government policy that has supported facilities-based competition as the only sustainable form of competition,” Telus said.
Rogers Senior Vice- President David Watt said the company also supported the decision.
“We believe the Commission made the right decision today by supporting innovation for Canadians and competition through facilities-based investment. We look forward to participating in the follow-up proceeding.”
Bell spokesman Marc Choma said the company would file its proposal for low-cost plans.
“We support t he continued commitment to the government’s successful policy of facilities- based investment and competition in wireless.”