By Denis Carmel
GATINEAU – In 2015, the CRTC decided to move from mandatory aggregated services to disaggregated services when it comes to wholesale high speed access services for the Internet, in Québec and Ontario.
That would allow competitors to interconnect closer to the client and lower the cost of service purchased from incumbents. In other words, instead of purchasing the local loop (or last mile) and the backhaul, they could buy just the local loop, including gaining access to fibre-to-the-premises portions of the incumbent networks.
The 2015 decision also determined the rules for the implementation of a transition from one regime to the other.
In 2018, the Canadian Network Operators Consortium Inc. (CNOC), which represents competitors who purchase services from large providers, filed an application calling for the Review and Variance (R&V) of the 2015 decisions and related decisions, claiming the disaggregated model did not provide the benefits it expected.
Then last Thursday, June 11th, the CRTC issued a Notice of Consultation “to address the appropriate network and service configurations for the disaggregated wholesale HSA service regime for all wholesale HSA service providers across the country, including the option of a modified level of disaggregation on the networks of Bell Canada, Cogeco, RCCI, and Videotron.
The Commission is also suspending the proceeding to set final rates, terms, and conditions for disaggregated wholesale HSA services in Ontario and Quebec until a later date.”
CNOC says it appreciates the decision: “In today’s ruling, the CRTC agreed that there are serious problems with the disaggregated model as it was shaping up, like CNOC initially raised in our R&V,” it wrote in an email to Cartt.ca.
“The Commission recognized a new approach is needed and has started a process to determine what it will be. Canadians need competitive and cost-effective access to higher speed services supported by FTTP and this notice of consultation paves the way for the process to start—we look forward to presenting our case to the CRTC. As the industry’s lone competitive voice, CNOC will continue to fight for increased competition while protecting the interests of the consumer—it’s about value, access and fairness,” they went on.
Bell said it is reviewing the notice, while Rogers had nothing to add at this time.
TekSavvy, however, a third-party internet access service provider is not happy: ‘‘We are extremely disappointed in the CRTC announcement,’ said Andy Kaplan-Myrth, vice-president regulatory and carrier affairs. “After a 5-year delay, the Commission has again extended Bell Canada’s FTTH monopoly indefinitely, without any satisfactory rationale for continuing to deny competitive choice for consumers.’
TekSavvy noted the CRTC’s failure to remove its monopoly exception not only contradicted the Commission’s own speed-matching policies, but also the federal government’s 2006 and 2019 policy directions. “After 5 years, multiple proceedings and clear evidence of harm to competition, the CRTC continues to prevent TekSavvy from offering matching internet speeds on Bell’s FTTH network. Now, we are back at square one’, said Kaplan-Myrth
TPIA service providers have been asked to provide a list of information by July 13th and interventions are due on September 9th. Final replies have to be sent by November 9th, unless there are further extensions requested. CRTC staff would not commit on a date for the decision.
