The CRTC will officially implement rules that require telecom companies to offer wholesale access to their fibre networks.
The policies were developed last summer but was delayed after Bell attempted to derail their implementation once the Liberals came into power, reports the Financial Post.
Bell argued hat mandated access would lower its return on its investment to the point that it would be unable to spend on Fibre-to-the-premises infrastructure (connecting fibre directly to the home).
Once the Liberal cabinet rejected its petition in May out of a desire to foster retail competition and support high-speed broadband coverage. The Post reports that the new rules require telco companies to switch from aggregated wholesale access to an entire network of disaggregated wholesale access.
Smaller telcos will still buy wholesale access to connections from a bigger telecom company’s or cable company’s central office, but will now have to lease or build their own transmission facilities within that location.
The Financial Post goes on to say that the CRTC believes that the new system will facilitate competition and give smaller telecom companies more control over their costs. It will also be more difficult to implement because of the differences in network infrastructure between cable companies and telecom companies.
The CRTC will apparently roll out the new regime in Quebec and Ontario according to the July 2015 decision, but in the meantime, the big telcos have been ducking wholesale pricing under the old system.
As the CRTC works on getting the big players to re-evaluate their rates, indie providers are unsure of how to move forward. However, while waiting for the CRTC to approve their new rates, the big players such as Rogers and Bell have issued some impressive deals for the back-to-school season.
Source: Financial Post