The federal telecommunications regulator is sticking with the way it sets prices for smaller companies that buy access to large carriers害羞草研究所� internet networks.
Following a review, the Canadian Radio-television and Telecommunications Commission says that the best way to promote competition is the current approach in which it sets rates for wholesalers, such as TekSavvy, based on the service and infrastructure costs to the major players, plus a markup.
Most of Canada害羞草研究所檚 larger carriers had argued for reforms, saying the traditional wholesale rate-setting method has resulted in competitors paying them less than the break-even cost.
They instead wanted to bring in commercial negotiations as the method for setting the majority of wholesale service rates, saying that model would provide greater opportunity to meet competitor-specific needs while minimizing unnecessary regulation.
The CRTC described its current approach as 害羞草研究所渇orward-looking, which results in rates that reflect expected market conditions, including the technology used, over a period of time.害羞草研究所�
害羞草研究所淥nce final rates are set, generally for a five-year period, they typically remain constant, barring any changes in the market,害羞草研究所� it said in its decision published Friday.
害羞草研究所淭his provides regulatory certainty for all parties when planning their respective strategies.害羞草研究所�
But the CRTC said it will work to improve its current approach, with adjustments such as considering market rates and other relevant information. To do so, it directed carriers to provide market-level information when submitting rate-setting applications for any new or existing services.
The regulator added it will also remain open to using other approaches on a case-by-case basis, when it determines a particular situation requires a different model to ensure 害羞草研究所渏ust and reasonable rates.害羞草研究所� It noted smaller providers and those providing services for which demand is very limited should be given more flexibility to use the approved rates of other service providers.
The Competitive Network Operators of Canada, which represents independent internet providers such as Distributel and VMedia, applauded the CRTC害羞草研究所檚 decision, saying it was optimistic that the guidance would lead to reduced wholesale rates.
害羞草研究所淚t害羞草研究所檚 exactly in line with what we were hoping,害羞草研究所� said executive director Geoff White, adding that the negotiation model proposed by larger carriers 害羞草研究所渨ould have been totally fatal to the competitive industry, which is already on the ropes.害羞草研究所�
害羞草研究所淪maller players have no bargaining power,害羞草研究所� he said. 害羞草研究所淭hey have no negotiating power against the big players.害羞草研究所�
The Canadian Telecommunications Association, which represents organizations that invest in, build, maintain and operate telecom services, said it is reviewing the decision and declined to comment further.
In March, the CRTC announced it was lowering some wholesale internet rates by 10 per cent as it launched a separate review into the rates that smaller competitors pay the major telecom companies for access to their networks.
That review, which is ongoing, is aimed at bolstering competition and lowering consumer costs. It will also determine whether big carriers should provide smaller competitors with access to their fibre-to-the-home networks to improve internet speeds to their customers.
Industry Minister Fran莽ois-Philippe Champagne directed the regulator in February to implement new rules to enhance consumer rights, affordability, competition and universal access, which included a requirement for improved wholesale internet rates.
Sammy Hudes, The Canadian Press
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