Telus Corp. is challenging a federal order for a CRTC review on whether Canada’s Big 3 telecom providers should be able to access each other’s wholesale fibre internet networks.
Telus is asking a Federal Court to quash the cabinet order, accusing the federal government of trying to overturn an independent CRTC decision, improperly entertaining submissions from select internet service providers, and failing to adequately consult with the provinces.
“The CRTC recently issued a decision after 17 months of expert review that was designed to increase competition and lower prices for home internet services,” Telus Consumer Solutions president Zainul Mawji said in a statement.
“Now, when Canadians are already struggling with affordability and cost of living, the federal government is seeking to overturn the CRTC’s decision and instead reduce choice and increase prices for consumers. Telus is asking the court to … allow the CRTC’s decision to stand.”
A series of recent CRTC decisions allow smaller internet providers to sell their services through fibre networks owned by companies such as Telus and BCE Inc.
Late last year, the regulator announced it would temporarily require Bell and Telus to allow competitors to access their fibre-to-the-home networks, only in Ontario and Quebec, in exchange for a fee.
That decision, which took effect this past May, was meant to stimulate competition for internet services in the provinces where the regulator said independent companies were struggling the most.
Following a broader review, the CRTC announced in August those rules would apply to networks owned by telephone companies countrywide.
Bell had appealed the initial decision that applied to Ontario and Quebec, asking the federal cabinet to overturn it. The company had argued the rules reduce its incentive to continue building out its fibre network.
Last month, Industry Minister François-Philippe Champagne said cabinet had denied Bell’s appeal. However, Ottawa requested the CRTC “reconsider a discrete aspect” of the new rules — whether major carriers such as Bell, Telus and Rogers Communications Inc. should be prohibited from using each other’s fibre networks to sell internet service to customers.
Champagne said the government had concerns about the viability of smaller internet service providers to act as alternatives to the big players. He also said the government wants to ensure companies can maintain their investments in internet infrastructure, particularly in underserved areas.
“The Government of Canada is making every effort to promote access to telecommunications services that are reliable, innovative, competitive and — most crucially — affordable,” said Audrey Champoux, a spokesperson for Champagne’s office, in a statement.