INTERNET PRICES COULD DIP AFTER CRTC SLASHES RATES
The federal telecom regulator’s decision to axe wholesale rates for high-speed Internet could hurt the bottom line for Canada’s largest providers but ultimately result in lower prices, analysts say. The CRTC substantially lowered rates major providers can charge independent Internet service providers for wholesale access to high-speed networks. Smaller competitors such as Distributel and Tek Savvy are expected to cut their prices to reflect lower costs, sparking price competition that could pressure incumbents such as BCE Inc., Rogers Communications Inc. and Telus Corp. That could spell trouble for large providers since Internet price increases have helped offset the erosion in cash from the shrinking number of home phone and TV subscribers, Desjardins Capital Markets analyst Maher Yaghi says.