CRTC mandates fibre network sharing, aims to enhance internet competition while safeguarding investments
Canada’s telecommunications regulator, the CRTC, has announced that starting next February, large telecom companies like Bell Canada, Telus Corp., and SaskTel must grant smaller internet providers access to their fibre networks for a fee.
This decision, reported by BNN Bloomberg, aims to increase competition in the industry.
This decision, which applies to fibre networks nationwide, builds on a previous ruling that required Bell and Telus to provide competitors with access to their fibre-to-the-home networks in Ontario and Quebec.
The earlier decision, which took effect in May, aimed to boost competition in regions where independent companies faced significant challenges. Bell responded by cutting its network spending by $1.1bn for 2024 and 2025, citing the ruling as a factor.
The company also reduced its workforce by 4,800 jobs and warned of further potential cuts to network investments.
The CRTC's latest decision, however, only applies to existing fibre networks, acknowledging the high costs of building fibre infrastructure.
New fibre networks built by large telecoms will remain exclusive to them for five years, allowing these companies to recoup their investments more quickly and encouraging them to expand fibre connections across Canada.
Fibre networks owned by cable companies, like Rogers Communications Inc., are exempt from this mandate, as a cost-benefit analysis showed these networks make up a small portion of Canada’s overall fibre footprint.
The expanded decision followed a February hearing in which the CRTC heard from 22 groups, including major and independent internet providers. Fibre internet customers in Ontario and Quebec have already seen increased competition and choice since the initial ruling.
CRTC chairperson Vicky Eatrides stated, “Today’s decision builds on our work to ensure that Canadians have access to more choice of high-quality internet and cellphone services at lower prices.”
She added that the CRTC's actions have already led to positive impacts on cellphone rates, and similar benefits are expected for internet services.
While some larger companies opposed the CRTC’s direction, smaller competitors like TekSavvy advocated for a more level playing field in internet competition.
The Competitive Network Operators of Canada welcomed the decision, with association president Paul Andersen expressing optimism about the potential for increased home internet choice for Canadians.
However, Andersen noted the challenges posed by the delays and asymmetrical obligations in the decision. Bell had proposed conditions, including a five-year head start for network builders, to mitigate potential disadvantages.
The CRTC’s ruling requires both telephone and cable companies to continue building networks within their traditional territories to avoid a shift toward wholesaling instead of infrastructure investment.
Rogers is reviewing the decision, while Quebecor Inc. CEO Pierre Karl Péladeau called it a “positive decision” that would enhance competition and support Videotron’s expansion across Canada.
Péladeau emphasized the importance of the final access rates, which the CRTC will set by the end of the year, urging the commission to ensure the rates are fair and reflective of market realities.
RBC telecommunications analyst Drew McReynolds described the CRTC’s decision as balanced, noting that it likely eased concerns from companies opposed to expanded wholesale access.
He highlighted the CRTC’s efforts to balance investment in infrastructure with the goal of fostering increased internet competition and innovation.
