GiC denies CRTC decision appeal

MP Navdeep Bains states that the 2019 CRTC decision's wholesale rates may stifle network investments - Aug 19, 2020

OAKVILLE - August 19, 2020: Last Saturday August 15th, 2020, the Honourable Navdeep Bains, Minister of Innovation, Science and Industry, has provided a formal response from the Governor in Council (GiC) i in regards to the petition from Canada's incumbent telecom providers against the CRTC's decision to lower wholesale rates back on August 15, 2019. Canada's largest telecom providers such as Bell and Rogers had argued that should the lower rates from the CRTC's decision come into effect, they would have no choice but to reduce their investments in rural broadband.

In summary, the GiC refused to overturn the CRTC's 2019 decision as per the petition from the incumbents. However, they noted that in their opinion, the rates proposed may stifle network incvestments as they are too much in favor of independent providers and that the CRTC would be reviewing their decision as a result.

Independent telecom providers such as SkyChoice are concerned with the statement that was released as it encourages the CRTC to review their 2019 decision due to pressure from the incumbents which will most likely lead to the proposed rates either being increased or rescinded.

MP Navdeep Bains issued the following statement:
"Canada's future depends on connectivity. Our government recognizes that access to affordable, high-quality high-speed Internet is a necessity for all Canadians, no matter where they live.

"The COVID-19 pandemic has only reinforced the importance of connectivity. The investments our government is making in high-quality networks, particularly in rural and remote communities, are key to ensuring equitable digital access for all Canadians. Equitable access also means that it is available at fair prices that Canadians can afford.

"In June 2019, our government directed the Canadian Radio-television and Telecommunications Commission (CRTC) to consider how its decisions can promote competition, affordability, consumer interests and innovation. In particular, the CRTC was asked to consider the extent to which these decisions can encourage all forms of competition and investment. Balancing these objectives and improving consumer choice, while furthering investment in high-quality networks, have been the long-standing goals of the regulatory framework for access to wholesale Internet services.

"In August 2019, the CRTC set new wholesale rates to be paid by competitor Internet service providers that access the high-speed networks of cable and telephone companies. These companies petitioned the Governor in Council, asking it to overturn the decision or refer it back to the CRTC for reconsideration. They argued that the rates are too low and significantly undermine their ability to invest in building high-quality networks.

"The Governor in Council has carefully considered the petitions and the submissions from all parties, as part of the public consultations.

"On the basis of its review, the Governor in Council 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. Retroactive payments to affected wholesale clients are appropriate in principle and can foster cooperation in regulatory proceedings. However, these payments, which reflect the rates, must be balanced so as not to stifle network investments. Incentives for ongoing investment, particularly to foster enhanced connectivity for those who are unserved or underserved, are a critical objective of the overall policies governing telecommunications, including these wholesale rates. Given that the CRTC is already reviewing its decision, it is unnecessary to refer the decision back to the CRTC for reconsideration at this time.

"Our government has made significant investments to support the building of Internet infrastructure in rural and remote areas so these communities can succeed in the digital age. We are committed to increasing higher speed broadband coverage and supporting competition, choice and the availability of services for Canadian consumers and business users.

"Wholesale broadband is a proven regulatory tool for enabling retail competition in the Internet service market. Setting the wholesale rates correctly is critical to ensuring these competitive options for Canadians while maintaining continued investment in high-quality networks and expanded access for Canadians in rural and remote areas.

"Our government is working hard to make sure that all Canadians have the access to high-speed Internet. 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.

"We will continue to monitor the CRTC proceedings closely to ensure our frameworks have the right incentives for investment and competitive choice, while preserving our policy flexibility for the forthcoming CRTC decision to ensure these important objectives are met."


About SkyChoice Communications
Since 2013, SkyChoice has been offering innovative and value added television, home phone and high speed Internet services across Canada. In addition to DSL and Cable, SkyChoice also offers Internet service direct to the home or business via its own WiFibe wireless fiber network which continues to expand on a regular basis. For more information, please visit: www.skychoice.ca
Home > News > CRTC tariff COVID relief

CRTC tariff COVID relief

MP Rempel Garner calls for action to safegard Internet access - Apr 14, 2020

OAKVILLE - April 14, 2020: With more and more people now working from home due to the growing COVID-19 pandemic, SkyChoice Communications fully supports the Shadow Minister for Industry and Economic Development MP Rempel Garner's call for action to the Minister for Industry for temporary wholesale rate relief to ensure smaller Internet Service Providers (ISP) are able to afford adding network capacity to continue offering services during these unprecedented times.

As the large incumebnt telecom providers are continuing to resist and appeal the CRTC's decision to lower wholesale rates back on August 15, 2019, smaller providers such as SkyChoice Communications are forced to invest an exorbitant amount of money in additional network capacity to ensure their network is able to continue handling the increased residential bandwidth demand during these unprecedented times.

MP Rempel Garner issued the following statement:
“At a time when everyone is being required to work and attend school at home, it is no longer a choice to have a reliable and affordable internet connection. Yet, frozen wholesale rates are forcing Canada’s smaller internet service providers (ISPs) to hike prices, lay off staff, may ultimately have to close shop, and may have to cut service off to existing customers.

“Under capacity based billing (CBB), smaller internet service providers pre-purchase the amount of network capacity that they expect to need to serve their retail customers from the big telcos. Since the rates are usage based, the increasing demands on the servers caused by the need to work from home mean that ISPs are now paying astronomical fees to the big telcos to use their networks. If these ISPs are forced to close shop, thousands of Canadians may have to go without internet.

“We can’t allow this to happen. The Minister of Industry must immediately direct CRTC to address this issue. For example, the CRTC could issue an emergency COVID-19 directive to the big telcos to respect the August 2019 rate decision given the seriousness of the situation; or do away with the existing billing model altogether and move to flat-rate billing. Another option is to request the big telcos to accept interest-free deferral of payments from ISPs on their networks until the end of COVID-19.

“I will continue to call on the government to ensure Canadians have internet access during this crisis. In addition to the impact this could have on the competitiveness of our telecommunications sector, I will be raising the issue of rural internet access and network capacity in the coming weeks.”


About SkyChoice Communications
Since 2013, SkyChoice has been offering innovative and value added television, home phone and high speed Internet services across Canada. In addition to DSL and Cable, SkyChoice also offers Internet service direct to the home or business via its own WiFibe wireless fiber network which continues to expand on a regular basis. For more information, please visit: www.skychoice.ca
Home > News > CRTC to lower rates

CRTC to lower rates

Decision to lower wholesale broadband prices will promote telecom innovation, choice and competition - Aug 15, 2019

OAKVILLE - August 15, 2019: SkyChoice Communications is pleased with today's CRTC decision to reduce wholesale Cable and DSL internet rates which will enhance competition, provide greater affordability and improved choice for Canadian consumers.

Today, the CRTC realized that Canada’s large incumbent telecom providers including Bell and Rogers had grossly overstated their network operation costs which led them to establish inflated rates for wholesale access to their networks. The CRTC further ordered the big telcos to repay the amounts they had overcharged smaller competitors during the 3 year regulatory proceeding.

The lower rates announced today by the CRTC means that wholesale broadband capacity on the networks owned by the big telecom providers will be more affordable for smaller providers such as SkyChoice who often have to lease wholesale access when serving customers located outside the coverage area of its own network.

The CRTC requires that the large cable and telephone companies make available parts of their network at regulated rates to improve competition and lower prices.

“As the demand for faster broadband speeds grows, we are putting measures in place to ensure Canada’s internet market remains dynamic” said CRTC chair and CEO Ian Scott in a statement.


About SkyChoice Communications
Since 2013, SkyChoice has been offering innovative and value added television, home phone and high speed Internet services across Canada. In addition to DSL and Cable, SkyChoice also offers Internet service direct to the home or business via its own WiFibe wireless fiber network which continues to expand on a regular basis. For more information, please visit: www.skychoice.ca