By Ahmad Hathout
OTTAWA – The CRTC has sent a letter to Rogers and Bell on Thursday asking them to lay out what off-tariff wholesale internet access agreements they have with competitors.
The request for information includes details of a proposed arrangement that would see Rogers give Videotron access to its broadband network at favourable wholesale rates to win over regulators in its pursuit of Shaw.
The request is part of the CRTC’s evaluation of an application filed by TekSavvy, which alleges that Rogers and Bell are engaging in agreements that are disadvantaging competitors who don’t get similar rates and must instead deal with what it calls inflated wholesale rates regulated by the CRTC. TekSavvy is asking for a broader review of these types of arrangements.
TekSavvy is accusing Bell of engaging in illegal self-preferencing by giving favourable wholesale access rates to its newly purchased EBOX affiliate. Bell denies the allegation on the claim that itself and EBOX are a single corporate entity, which TekSavvy said is not how the company portrays EBOX in other regulatory and legal filings.
The regulator is asking both Rogers and Bell for information including a copy of the most recent off-tariff agreement with competitors named in TekSavvy’s application since January 1, 2020 and a list of all competing service providers that the companies acquired and have been in “formal discussions” for the purpose of buying since that date.
Specifically for Bell, the regular is asking for information related to the terms of the relationship with EBOX, how it is similar and dissimilar to its relationship with its flanker brands, and a “network architecture diagram” for EBOX.
TekSavvy is also being asked to provide a list of all off-tariff agreements it has with other providers since January 1, 2020.
Other basic information being requested of Rogers and Bell include the name of the competitor, the type of wholesale service or arrangement provided, date of effect and end date and status of the access.
The information is subject to confidentiality provisions, so details are likely to be redacted from the public.
Earlier this month, the CRTC launched its review of the wholesale internet access framework to address what it said were higher broadband prices. The review came after TekSavvy warned in a reply to its Part 1 application that there will be fewer competitors left if off-tariff wholesale agreements are not urgently addressed.
There have been several mergers and acquisitions in the industry recently. Bell closed its acquisition of large ISP Distributel last month, Videotron purchased VMedia, Start and Altima went to Telus, and Oxio’s internet business to Cogeco. Rogers CEO Tony Staffieri said earlier this month that acquisitions of smaller providers is an option to reach 100 per cent coverage of the market.
