Representatives from some of Canada’s last remaining independent internet service providers (ISPs) have asked regulators to urgently address internet competition.
TekSavvy, one of Canada’s largest ISPs, said its subscription base has declined by 100,000 subscribers since its peak amid an internet market that doesn’t favour wholesale providers.
The ISP shared its concerns with a panel of representatives from the Canadian Radio-television and Telecommunications Commission (CRTC) on Friday, the last day of a week-long hearing on reviewing the wholesale internet framework.
The CRTC announced its review in March. In November, it made an interim ruling ordering Bell and Telus to give competitors in Ontario and Québec access to their fibre-to-the-premises (FTTP) networks.
Andy Kaplan-Myrth, TekSavvy’s vice president of regulatory and carrier affairs, said the hearing was “the most critical regulatory proceeding for TekSavvy ever.”
He said the company has been under “enormous pressure” for the past six years, and the same pressure led a number of other small players to exit the market. TekSavvy explored the option of joining its fallen comrades, but at this time, the company is not for sale.
“We’ve been running on hope for a very long time. That hope ran out for some competitors. We’re still here. I don’t know how long that lasts, but no rational business runs on hope forever,” Kaplan-Myrth said.
The Competitive Network Operators of Canada (CNOC) also urged the commission to take quick action, citing the decline in internet competition. As part of its November decision, the CRTC noted competition in Ontario and Québec saw a 47 percent decline since the end of 2022.
CNOC, which represents several ISPs, said the commission’s framework must include aggregated wholesale access to incumbent-owned FTTP networks.
Aggregated access allows ISPs to lease access facilities needed to connect to consumers’ locations and transport facilities from larger players. This differs from disaggregated access, which allows ISPs to lease access facilities but not transport facilities.
CNOC also proposed territory-based restrictions blocking incumbents and their affiliates from using the wholesale framework within their territories. Comprehensive national restrictions should also apply to Rogers, Bell, and Telus.
“This is necessary due to their dominance across multiple wireless and wireline telecom markets that enables them to bundle services and coordinate pricing in a manner that harms competition,” Paul Andersen, CNOC’s president, said during the hearing.
It’s a sentiment several others shared during the week-long hearing, which included presentations from Rogers, Bell, Telus, Eastlink, and the Manitoba Coalition.
Updated February 16, 2024, 5:31PM ET: The article has been updated with information for clarification.
Image credit: TekSavvy
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