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CRTC to regulate wholesale rates in bid to reverse “unsustainable” competition

Connectivity BusinessbyConnectivity Business
May 5, 2015
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Canada’s Radio-television and Telecommunications Commission (CRTC) has announced measures to boost competition in the mobile sector, which it has found to be “likely not sustainable”.
The market is currently dominated by Bell Mobility, Rogers…

Canada’s Radio-television and Telecommunications Commission (CRTC) has announced measures to boost competition in the mobile sector, which it has found to be “likely not sustainable”.

The market is currently dominated by Bell Mobility, Rogers Communications and Telus.

The CRTC said it would regulate the wholesale roaming rates charged by the three leaders to other domestic wireless companies. It has already set interim rates, giving the three telcos until 4 November 2015 to file their proposed rates.

In June 2014, the parliament amended the Telecommunications Act to cap wholesale wireless roaming rates, while the CRTC conducted its public consultation. The CRTC said it now recommends that the Governor in Council repeal this cap, in order to let market forces take over.

The regulator said it would also take action to give MVNOs more flexibility when negotiating with wireless operators, as part of its efforts to increase consumer choice and value.

In a final measure, the CRTC said it would use its “current processes” to deal with tower and site-sharing among wireless carriers, arrangements it describes as cost effective, efficient and minimising the number of towers in Canadian communities. As such, it will be able to address issues relating to rates, terms and conditions using its current toolbox.

“The measures that we are putting in place today in the wireless market will ensure that Canadians continue to have more choice as well as innovative high-quality services,” said CRTC chairman Jean-Pierre Blais.

Canada’s so-called new entrants – including Videotron, Wind Mobile and Mobilicity – plus MVNOs, share the 10% of the market not held by Rogers, BCE and Telus. In a bid to redress this imbalance, the recent AWS-3 auction set aside 60% of the spectrum for new entrants. The 2500MHz auction, currently underway, for its part, has not expressly reserved any spectrum for new entrants.

 

 

 

Tags: Bell CanadaRogers CommunicationsTelus
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