The federal government is proposing new rules that it says will help make the Internet more affordable and reduce phone bills.
Ottawa will demand that the Telecommunications and Broadcasting Commission of Canada (CRTC) allow smaller Internet service providers to access the networks of large telecommunications companies and says it “must take steps to have wholesale tariffs more timely and improved “.
But it will not overturn a controversial CRTC ruling last year that overturned the regulatory agency’s own 2019 decision to reduce the fees that large telecommunications may charge smaller Internet service providers for access. in their broadband networks.
Read more: CRTC approves Rogers’ takeover of Shaw’s broadcast, but on costly terms
The government is also ordering the CRTC to improve its hybrid mobile virtual network (MVNO) operator model and says it is willing to move to a full MVNO model to support competition if needed.
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MVNOs are wireless providers that buy mobile network service from large carriers at a wholesale price and then sell access to customers at a more affordable price.
Ottawa also calls on the CRTC to address what it calls unacceptable sales practices and take new steps to improve clarity about service prices and customers’ ability to cancel or change services.
It also wants service providers to implement mandatory broadband testing so that Canadians understand why they pay.
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Small Internet Service Providers (ISPs) said they are cautiously optimistic about the new telecoms policy guidelines.
But Brad Fisher, director of revenue for independent telecommunications company Distributel, says he is “disappointed” by Ottawa’s decision not to overturn last year’s ruling.
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“It’s a missed opportunity to put money back in the pockets of Canadians,” he said.
After assessing the requests of smaller ISPs on the issue, Ottawa says it concluded that the 2019 rates included a number of errors and that it would be “irresponsible” to implement them. The government says the rates applied in 2016 will be maintained.
Read more: Small Internet providers preparing to raise prices, cut services amid CRTC decision
Fisher adds that the decision will make the market difficult for smaller ISPs to operate, although the government has provided a “clear set” of directives that are “long-term competitive.”
Meanwhile, telecommunications researcher Ben Klass says the measures are not enough to support the competition.
“This direction appears to be primarily an effort by the government to divert attention from its refusal to address the CRTC’s failure to support competition by regulating fair tariffs for ISPs,” he said.
Ottawa’s proposed telecommunications policy comes as concerns about the acquisition of Shaw Communications Inc. increase. for $ 26 billion from Rogers Communications Inc.
© 2022 The Canadian Press