CRTC to conduct arbitration between Telus and Québecor over MVNO access

Canada’s telecom regulator will determine a rate for Québecor to access Telus’ wireless network as a Mobile Virtual Network Operator (MVNO).

The two companies have been unable to come to an agreement on their own, leading Québecor to request the Canadian Radio-television and Telecommunications Commission (CRTC) take part in a final offer arbitration (FOA) process.

According to the regulator’s January 29th letter, Telus opposed the measure, stating the parties were partaking in ongoing negotiations and had proposed rates close to each other. The Vancouver-based company argued parties typically resolve such a situation in the marketplace and don’t require external assistance.

“In Telus’ view, [Québecor] is gaming the framework by using FOA to obtain rates it would not normally have access to by way of commercial negations,” the letter states. “Telus argued that accepting [Québecor’s] FOA request would equate to normalizing the use of FOA rather than using it on an exceptional basis.”

The CRTC said an FOA is appropriate in this situation as they’ve been discussing the matter ” for some time already.”

“Telus’ argument that [Québecor] may be motivated to present an offer that does not reflect fair market value is not grounds to refuse [Québecor’s] request to initiate FOA,” the CRTC states.

The CRTC previously took part in similar negotiations between Québecor and incumbents Rogers and Bell. Between Québecor and Rogers, the regulator picked Québecor’s rate. But between Québecor and Bell, the CRTC selected Bell’s rate. These agreements helped Québecor expand its wireless services across Canada.

Telus and Québecor have until February 13th to file related documents with the CRTC.

Source: CRTC