As last remaining large wholesaler, TekSavvy faces tough market conditions

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Higher internet wholesale prices meant TekSavvy had to step away from a spectrum bid last year and has not been able to expand its modest physical network as planned

decision, raising prices back to 2016 levels and making it more difficult for wholesalers to turn a profit. It said the 2019 rates included a series of errors and that it would be “irresponsible” to implement them. TekSavvy appealed the decision and is still waiting for a hearing date.

“Canada continues to need billions of dollars annually in private-sector investment to extend the reach of networks into unserved areas,” Mr. Goldberg said. “Among the more successful independent ISPs are those that aren’t simply offering cheaper services but offering added value.” Its situation is further complicated by the fees it would be required to pay to connect to incumbents’ fibre-optic networks. To offer a similar internet service, Mr. Kaplan-Myrth said, TekSavvy would have to charge double the price. As a result, he said, the company has lost most of its customers for wholesale products over the Bell network.

 

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