Chatham, Ontario-based independent internet service provider (ISP) TekSavvy announced that it would lower monthly bills and upgrade packages for many of its customers. It credits the CRTC for the change.
According to a release the ISP sent out, over 85 percent of TekSavvy customers will benefit from reduced prices or upgraded, unlimited data plans on their next monthly bill. This comes as TekSavvy streamlines its product line following the Canadian Radio-television and Telecommunications Commission’s (CRTC) regulatory decision regarding wholesale rates.
That August 15th decision determined that Canada’s largest telecom companies, like Rogers and Bell, had overstated the cost of providing wholesale network access to smaller companies. TekSavvy says the CRTC found that wholesale rates were “severely inflated” and subsequently corrected the final rates to more reasonable levels. It also required cable companies to repay the amounts they had overcharged competitors.
It’s worth noting that the CRTC ruling doesn’t require smaller ISPs to pass the savings onto customers, but TekSavvy chose to anyway.
Further, some customers have already received a discount. One MobileSyrup reader let us know that they received a $7 discount on their bill. The TekSavvy email the customer received cited the change to wholesale rates as the reason behind the savings.
However, several of Canada’s larger telecom players, including Rogers, Shaw, Quebecor’s Videotron, Cogeco and Bragg Communications, which owns Eastlink, are seeking an appeal of the CRTC’s ruling. The companies accused the CRTC of making several errors of law and exceeding its jurisdiction.