BCE CEO says regulatory intervention threatens to stall fibre-network investment

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Mirko Bibic says that if the rates are set too low, companies such as his will be forced to curtail their investments, particularly in smaller, rural communities

Canada’s telecom industry is “moving rapidly” toward regulatory intervention that threatens to stall investment in high-speed internet networks in rural communities, BCE Inc.’s chief executive says.

Currently, internet service providers are able to negotiate access to those networks, but they say the prices are too high for them to be able to compete., cautioned on Monday that if the rates are set too low, companies such as his will be forced to curtail their investments, particularly in smaller, rural communities, where the return on investment is lower.

In its notice of consultation, the CRTC states the risk of discouraging future investments in fibre-optic networks is “minimal” because those networks are mostly built. He also cautioned that regulations that place the interests of resellers over those of builders could have negative unintended consequences on the country’s critical infrastructure.

 

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