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.
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.
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