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CRTC Rules that Major Telecommunication Carriers Must Accommodate Alternate ISPs
The Canadian Radio-television and Telecommunications Commission (CRTC) recently ruled that large telecommunication carriers (the “incumbent local exchange carriers” or “ILECS”) must “provide their existing wholesale high-speed access services to competitors at speeds that match all speed options the ILECs offer to their own retail Internet service customers.” Cable carriers also must provide similar high-speed access to competitors. In addition, the CRTC ordered cable carriers to modify their existing access services in such a way that alternative Internet Service Providers (ISPs) can connect to their networks at as few points as possible. The CRTC believes that these changes will foster competition.
The CRTC recognized that ILECs have made significant investments in constructing facilities and expanding their networks in order to provide higher speed Internet services. As such, the CRTC allowed ILECs to charge competitors an additional 10% mark-up over their costs for the use of the higher speed options of the wholesale Internet services. Cable carriers’ rates to competitors were left unchanged.
Larger carriers, such as Bell and Rogers, have called the ruling unfair, as they have invested significant resources in building up their networks, which they must now make more available to their competitors. Bell Canada indicated that it will ask the federal cabinet to review the decision.
For additional information, visit:
http://www.crtc.gc.ca/eng/com100/2010/r100830.htm
http://tinyurl.com/28bdk35