CRTC decision intends to spur wireless competition, but some are sceptical
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,Rogers-Shaw deal 'doesn't make sense': Public Interest Advocacy
The Canadian Radio-television and Telecommunications Commission (CRTC) announced a decision Wednesday, which the regulator said is intended to facilitate competition in Canada’s mobile wireless market.
According to a release from the regulator, the decision will support mobile virtual network operators (MVNOs) by providing opportunities for regional providers to offer competition. The decision dictates that large wireless providers are now required to accept requests for access to their networks from regional wireless providers and to negotiate wholesale MVNO rates, the release said.
“This will help provide more affordable options to millions of Canadians while increasing competition. We expect the large providers to negotiate in good faith and come to an agreement as quickly as possible with regional wireless providers,” Ian Scott, the CRTC’s chairperson and chief executive officer, said in the release.
John Lawford, the executive director and general counsel of Public Interest Advocacy Centre, said in an interview Friday that the decision leaves consumers “pretty much back to a big three scenario for the foreseeable future.”
“So it's like winter for another 10 years, easy. Unless something big changes, [like] some government comes in that wants to flip the table over,” Lawford said.
The purpose of the new policy, according to the release, is to allow regional wireless competitors to use the networks of more established carriers while they build out their own networks.
As such, Canada’s major wireless providers Bell Mobility, Rogers, Telus and SaskTel will be required to provide network access, the release said.
Lawford said that to be eligible, regional carriers will be required to be already operating a network and have previously purchased spectrum assets in the area they want to serve.
Additionally, he said the CRTC’s definition of an MVNO is a misnomer that stems from a 2021 policy, something that Wednesday’s decision did not correct.
“Virtual means you don’t have spectrum and you don’t have a network,” Lawford said.
“What you're basically doing is grabbing some or all elements of a network from the present providers and reselling it. That's what it is. And the CRTC said ‘no we don’t want that,’” said Lawford.
According to the decision, MVNO access rates will be open to renegotiation every two years, but parties can agree to a different period. Additionally, services will be phased out after a period of seven years; something Lawford said puts regional carriers at a disadvantage.
“You got to conclude an agreement every two years. Lay track for two years and drive your train down hoping that you can put more track down in two years. Oh, and by the way, when you get to year seven you're going to hit a brick wall anyway,” Lawford said.
Wholesale MVNO rates will be commercially negotiated; however, the regulator said it will act as an arbitrator if required.
Lawford said that commercial negotiations are unlikely to be favourable to the smaller carriers.
“There's no reasonable prospect you're going to come up with a fair negotiated settlement, not if the CRTC is the baseball arbiter or whatever they do. It's not going to be quick. It won't be transparent so nobody else sees what the deal is either, right? Like what's your cost structure? Nobody knows. And consumers don't know how much anybody is paying,” he said.
The decision follows a CRTC review that found limited competition and barriers for new providers entering the market, the press release said.
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