Telcos threaten to pull rural internet investment after CRTC lowers wholesale rates

  • 📰 nationalpost
  • ⏱ Reading Time:
  • 61 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 80%

Italia Notizia Notizia

Italia Ultime Notizie,Italia Notizie

Five big players to take combined charges of $325 million this quarter

Canada’s largest internet providers are threatening to cut investment in broadband networks, especially in rural and remote areas, after the federal telecom regulator drastically lowered the price they can charge smaller competitors for wholesale network access.

But major providers accuse them of freeloading off their network investment and eating into their profits, blowback that could damage the government’s other goal of improving internet connections in rural and remote regions where there isn’t as much of a business case for investment. Eastlink was “shocked and disappointed” by the decision that it said forces it to decrease its rates to one-third of its costs.

Eastlink executive vice-chair Lee Bragg SaskTel echoed the sentiment, stating, “the CRTC seems focused on directing us to effectively give it away to resellers who will invest virtually nothing in the province and likely will not employ any Saskatchewan residents.” “This will not distract from our government’s commitment to connect every Canadian to affordable high-speed internet by 2030, and I am confident new competitors will step up to make these investments,” Bains said.

Previously, some of the big providers advertised retail rates that were lower than the wholesale rates, making it impossible for smaller players to compete, Stein said. The final rates include a 30 per cent markup on costs, he added, making it difficult to argue costs are lower than rates.

 

Grazie per il tuo commento. Il tuo commento verrà pubblicato dopo essere stato esaminato.

The telcos must be forced to provide service to ‘hard to reach’ areas. If you want to be a telco then BE A TELCO and provide service

Time for new competition. Bernier's the one who paved the way for the high rates in the first place by muzzling the CRTC.

Abbiamo riassunto questa notizia in modo che tu possa leggerla velocemente. Se sei interessato alla notizia puoi leggere il testo completo qui. Leggi di più:

 /  🏆 10. in İT

Italia Ultime Notizie, Italia Notizie

Similar News:Puoi anche leggere notizie simili a questa che abbiamo raccolto da altre fonti di notizie.

Shaw, Videotron join industry concern over CRTC’s new wholesale broadband ratesLast week CRTC said it set the rates lower to increase choice at lower prices and ensure a competitive marketplace across Canada
Fonte: globeandmail - 🏆 5. / 92 Leggi di più »

‘The American disease’: Canadian companies pouring cash into stock buybacks as backlash grows abroadCritics say buybacks suppress wages, drive inequality, decrease investment, hurt competitiveness and destroy economies
Fonte: nationalpost - 🏆 10. / 80 Leggi di più »