Distributel to raise internet prices due to CRTC wholesale rates uncertainty

The company says it has no choice but to increase prices

Distributel is the latest independent service provider to raise prices in response to the federal cabinet’s statement in regards to the CRTC’s wholesale rates.

The company says although it has worked to minimize impacts, customers should expect a $5 to $10 temporary surcharge to their monthly price.

“The additional fee will need to be in place at least until a final order comes down for wholesale internet rates,” Distributel outlined in a press release.

Over the weekend, Innovation Minister Navdeep Bains released a statement saying the Governor in Council believes that the CRTC’s lowered rates from August 2019 do not balance the policy objectives of the wholesale services framework and that the rates may undermine investment, particularly in rural and remote areas.

Wholesale rates are paid by competitors, like TekSavvy and Distributel, which then get access to high-speed networks from incumbents like Bell, Rogers, and Telus. Rates are set so that incumbents can charge for this access after the CRTC reviews information regarding how much it costs to operate networks.

“The government could have simply allowed the CRTC to proceed with its own review, but by inserting this extra commentary, it’s created more confusion and uncertainty,” said Distributel CEO Matt Stein in the press release.

This news comes as TekSavvy and Start.ca have also raised their prices following the government’s statement from August 15th.

Source: Distributel

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