The Federal Court of Appeal has granted a temporary stay to a group of five cable companies regarding a recent CRTC ruling that required them to lower the rates they charge smaller internet providers for access to their networks.
The five cable operators – Rogers Communications Inc., Shaw Communications Inc., Quebecor Inc.’s Videotron Ltd., Cogeco Communications Inc. and Eastlink owner Bragg Communications – are challenging an Aug. 15 ruling by the Canadian Radio-television and Telecommunications Commission .The CRTC requires large telecoms to sell wholesale access to third-party operators − such as TekSavvy and Distributel − who then sell internet service to their own customers.
The August ruling set lower final rates for what large internet service providers can charge smaller players for access to their networks. It also ordered the large providers to make retroactive payments to third-party operators to make up for the higher prices charged since the CRTC set interim rates in 2016.
Federal court Justice Yves de Montigny said in a ruling issued Friday that implementing the CRTC order “could result in a permanent market distortion which could be extremely difficult to remedy afterwards.” “I am of the view that the balance of convenience favours the status quo until the applicants’ motion for leave to appeal and for an interlocutory stay is determined,” he added.