Wireless network restrictions to be reviewed
Consumer advocate predicts government decision could help lower cost of services
A government-ordered review of a recent decision restricting access to the networks of Canada’s big wireless service providers is being hailed as potential good news for consumers.
The Canadian Radio-television and Telecommunications Commission (CRTC) ruled in March that Rogers could block customers of Sugar Mobile, a subsidiary of Ice Wireless, from roaming on its network.
The decision not only effectively paralyzed the startup, but also prevented other smaller mobile service providers from offering cheaper plans and consequently limits choice in the market, Innovation Minister Navdeep Bains said Monday in calling for a rethink of the ruling.
“This decision excludes Wi-Fi-based providers from access to regulated roaming services,” Bains said while speaking at an annual conference in Toronto for the Canadian telecommunications industry.
“And that effectively prevents WiFi-based providers from offering their low-cost plans to consumers. This lack of choice does not benefit Canadians.”
Sugar Mobile, which doesn’t have its own wireless infrastructure, relied on the network set up by Rogers to provide service to its customers through a so-called mobile virtual network, or MVN.
In a brief email message, the CRTC said it would comply with the order, being careful to say it would reconsider the “aspect of its decision that established the final terms and conditions for access to wholesale mobile wireless roaming service.”
A spokesperson for Bains said the review will also include a second decision issued by the CRTC on March 1 that reinforced its position that wholesale roaming cannot be used as a way to get permanent access to a telecom company’s network.
An advocate for greater wireless choice praised the review, predicting it could result in cheaper services from new low-cost entrants into Canada’s wireless marketplace.
“We’re excited that the CRTC has been asked to look again at this issue and we hope they’ll come back with a solution that will lift big telecom’s blockade and lead to lower prices and greater choice for Canadian consumers and small businesses,” said Katy Anderson, a digital rights advocate at OpenMedia.
“Allowing smaller providers to enter the market will improve innovation, encourage competition and enable low-income Canadians to participate more fully and meaningfully in our digital society.”
In ordering the review, Bains also made clear he expects any new ruling from the CRTC would not stifle investment by the big telecom companies to keep their wireless networks up to date.
Rogers said it would work with the regulator with the aim of keeping wireless costs down while at the same time improving its service infrastructure.
TekSavvy, which offers home Internet service in central Canada, but has been looking at broadening into mobile service, called the CRTC review “potentially game changing.” “This is a fresh approach to kickstarting mobile competition in Canada,” said Bram Abramson, TekSavvy’s chief legal and regulatory officer, who noted that Wi-Fi-first carriers in other countries are fostering competition.
Canada’s last remaining independent wireless provider, Wind Mobile, was rebranded as Freedom Mobile after being bought by telecom giant Shaw Communications last year.
Bains also announced consultations Monday on the release of spectrum to support the development of so-called 5G wireless infrastructure, something he said is needed to meet demand from Canadians for faster networks and higher capacity for wireless data.
As well, the government released new rules for the deployment of next-generation satellites that it hopes will lead to more high-speed Internet services for Canadians living in rural and remote communities.
Internet and cell services still aren’t available for many rural and low-income Canadians, and prices are higher than in other developed countries, Bains said at the Canadian Telecom Summit.
“Access isn’t the only challenge, the bigger barrier is price,” Bains said. “The digital divide is unacceptable.”