CRTC Stands Firm on Internet Resale Decision
The Canadian Radio-television and Telecommunications Commission (CRTC) has reaffirmed its choice to permit major telecom companies to resell internet services across each other's networks. This decision comes despite important pushback from various stakeholders.
This ruling concludes a dispute that began nearly a year ago when the CRTC mandated that Bell and Telus must allow other providers access to their fiber networks. Initially, this directive was limited to Ontario and Quebec but has now been expanded nationwide.
Concerns Over Competition in the telecom Sector
While many viewed this move as a step forward for expanding wholesale internet options, it raised concerns about competition. Critics argue that allowing established players like Bell, Rogers, and Telus access to the same wholesale platform could harm smaller internet service providers (ISPs). They fear this would enable larger companies to dominate the market by pushing out their smaller counterparts.
To challenge the CRTC's decision,opponents needed to demonstrate “ample doubt” regarding any errors made by the commission. Various groups submitted applications backed by studies supporting their claims against the ruling.
The CRTC’s Justification for Its Ruling
In its June 20, 2025 announcement, the CRTC stated that “the balance of evidence does not establish substantial doubt” about its original decision's validity. The commission provided several reasons backing its conclusion.
Firstly, it noted that when an ISP utilizes wholesale access outside of its existing network area, it creates new options for consumers rather than limiting them. Additionally, while some argued that regional competitors would suffer significantly due to this ruling, the CRTC found only a modest short-term impact on these ISPs' market share.
- The need for ISPs to stay competitive will drive investment in infrastructure;
- The operational efficiencies and cost benefits of fiber over older copper lines;
- The cost-based rates set by the commission are designed to help companies recoup expenses related to building networks;
- This decision includes protections aimed at encouraging further investments in network progress.
Taking all these factors into account lead the CRTC not to alter its final stance on this matter.
A Mixed Response from Industry Players
The commission believes telecom companies will continue investing in infrastructure; tho, skepticism remains among some industry leaders. For instance,Bell has publicly criticized this ruling and warned it might cut back on fiber investments if changes aren’t made soon.Earlier this year, they even launched an advertising campaign opposing what they see as detrimental policies regarding fiber wholesaling.
Bell’s CEO Mirko Bibic expressed during a quarterly earnings call that his company is not interested in building fiber networks solely for Telus's benefit—a reference stemming from Telus utilizing Bell’s network under current regulations while expanding its PureFibre service into Ontario and Quebec with support from those rules.
A Call for Government Intervention?
Interestingly enough,The Globe and Mail, reported how organizations like Canadian Telecommunications Association—representing firms such as Bell and Rogers but excluding Telus—have urged federal authorities reconsider or overturn these decisions altogether before August 13th deadline approaches.
