GATINEAU – New wireless entrants got their wish. The CRTC has concluded that Bell Mobility, Rogers Communications and Telus Corp. “have the ability and incentive” to impose wholesale roaming terms, conditions and rates that wouldn’t “prevail in a competitive market” and therefore will regulate their wholesale roaming rates.
Telecom Regulatory Policy 2015-177, released on Tuesday, only covers GSM-based networks (which is the tech most run on now).
Even though wholesale roaming caps as established by the federal government in Section 27.1 of the Telecommunications Act last June offered some relief to the new entrants, “the interests of users are not sufficiently protected” because Bell, Rogers and Telus “collectively have market power in the national market” for GSM-based wholesale roaming, reads the decision.
In its decision, the Commission noted that acquiring spectrum and building out a broad or national network without wholesale roaming isn’t economically feasible nor practical. Equally, it noted that even working under a network sharing agreement wouldn’t be enough for a small wireless operator to build a national network.
“Therefore the Commission determines that there are no economically feasible or practical alternatives to GSM-based wholesale roaming for smaller wireless carriers in the national market in the short to medium term,” reads the decision.
The ruling also said that even though there are multiple national carriers from which new entrants can secure wholesale roaming, individual new entrants usually can only get wholesale roaming from the national carrier closest to its network.
“In light of the above, the Commission determines that GSM-based wholesale roaming from the national wireless carriers under reasonable rates, terms and conditions is necessary for smaller wireless carriers including new entrants, to offer broad or national network coverage to their retail customers.” – CRTC
“In light of the above, the Commission determines that GSM-based wholesale roaming from the national wireless carriers under reasonable rates, terms and conditions is necessary for smaller wireless carriers including new entrants, to offer broad or national network coverage to their retail customers,” says the ruling.
The CRTC has directed the Big Three to now file tariffs, including cost studies, for wholesale roaming by November 4, 2015. In the meantime, interim rates will apply with Bell, Rogers and Telus having to post them by June 4. They have been set at the same level as those spelled out in Section 27.1 of the Telecom Act. The Commission has also recommended that the federal government repeal this section of the legislation.
Wholesale roaming tariffs from the Big Three will be established using the Phase II costing methodology. In other words, the tariffs will evaluated on a cost-basis not a retail minus methodology. It’s not yet clear what markup level will apply. That will be determined in the proceedings for each of the company’s rates.
MVNO access
During the September 2014 hearing, there were calls from a number of parties for the Commission to enable greater mobile virtual network operator (MVNO) participation in the Canadian market. This would have been accomplished by mandating access to the networks of facilities-based carriers for these companies.
The CRTC ruled, however, that mandating access to wireless infrastructure may actually harm new entrants. It said that investments already made and those being done now would be undermined by access to infrastructure.
But it’s not all bad for MVNO wannabes. The Commission has banned certain practices that prevented MVNOs from gaining national coverage. For example, an MVNO that had an agreement with a new entrant who in turn had a roaming agreement with one of the national carriers was unable to roam on to the national carrier‘s network.
“Removing such restrictions, which prevent smaller wireless carriers, including new entrants, from offering access to their mobile wireless networks to MVNOs, will further the development of a competitive market for wholesale network access,” argues the Commission in its decision.
The business case for MVNOs was also bolstered with the CRTC decision to allow these non-facilities-based carriers to acquire mobile network codes (in essence SIM cards).
“Having its own unique MNC enables a full MVNO to more easily switch its host wireless carrier, make arrangements with multiple wireless carriers, and negotiate its own wholesale roaming arrangements (e.g. with international wireless carriers),” states TRP 2015-177.
Towers and site sharing was another one of the wholesale wireless services studied during the hearing. With respect to this latter element, the Commission has determined that its powers and processes are sufficient to deal with any tower or site sharing disputes.
The Commission has also ruled that seamless roaming or call handoff is not required and won’t be mandated.
