Telecom regulator may have erred with rate decision, minister says

The federal government fears a regulatory decision last year could undermine investments in Canada’s communications networks, particularly in rural and remote areas.

But on Saturday, Navdeep Bains, on behalf of the federal cabinet, said it won’t intervene in the CRTC’s review of its own decision about wholesale internet rates.

“Our government is working hard to make sure that all Canadians have the access to high-speed Internet,” said Bains, minister for innovation, science and industry. “We encourage all parties to cooperate in the CRTC’s ongoing review of the rates decision to support a timely conclusion that will provide more certainty for all involved parties.”

The CRTC decision, issued Aug. 15, 2019, but put on hold by an appeal court, has been praised by Canada’s independent internet service providers, but denounced by the large phone and cable companies, who say the rates would be far too low. Both sides of the argument have lobbied the government and fought each other at the Federal Court of Appeal and before the Canadian Radio-television and Telecommunications Commission.

The statement issued by Bains, who wasn’t available for comment Saturday, suggests but doesn’t say outright that the arms-length regulatory body should re-think how it arrived at its conclusions after years of study and analysis.

“On the basis of its review, the (cabinet) considers that the rates do not, in all instances, appropriately balance the policy objectives of the wholesale services framework and is concerned that these rates may undermine investment in high-quality networks, particularly in rural and remote areas,” Bains said.