Internet service providers fear feds will side with CRTC on ruling boosting competitor access to fibre networks

OTTAWA — The federal government is set to make a highly anticipated decision in the coming weeks regarding internet affordability.

The CRTC recently reiterated its decision issued last year authorizing Canada’s three major telecommunications companies to resell fibre optics to internet service providers (ISP) on their respective networks.

At the time, then-Minister of Industry François-Philippe Champagne asked the regulator to review its decision, which notably grants Telus more options to access new markets.

According to the regulator, “several thousand Canadian households” are already benefiting from new plans offered by “dozens of providers that are using the access enabled by the Final Decision.”

“Changing course now would reverse the benefits of this increased competition and would prevent more Canadians from having new choices of ISPs in the future,” wrote the CRTC in its June 20 decision.

However, many telecommunications companies are fighting back and exerting pressure on the federal government, particularly Industry Minister Mélanie Joly, to overturn the CRTC’s decision, arguing that it will have a negative impact on investment and competition across the country.

For them, the case is not over and the final decision has not yet been rendered.

They have financial analyses, including from Bank of America and National Bank, that predict “a decline in future investments in telecommunications infrastructure” if the decision is maintained.

Federal cabinet is expected to confirm or overturn the CRTC decision by Aug. 13.

“We take note of the CRTC’s decision to retain mandated wholesale access to fibre networks,” said Joly’s spokesperson, Isabella Orozco-Madison, in a statement. “Cabinet will make its decision on the petition before it in due course.”

The battle between the telecom giants, which began years ago before the federal regulator, is highly political in nature. A source indicated that Telus is also making every effort to ensure that the CRTC’s decision is upheld by Ottawa.

In an interview with National Post, Cogeco Communications’ chief legal and corporate officer said that telecoms will play a crucial role in Canada’s defence, housing, energy, artificial intelligence and agriculture sectors, and that the government must adopt policies that will promote their prosperity.

“It’s really about the moment we’re in as a country, and we don’t have time for regulation that doesn’t make sense and defeats its own objectives,” said Paul Cowling.

Smaller providers like Cogeco, or even independent providers that don’t have their own facilities, could very well be threatened by this policy if Ottawa signs off on it, they say.

“We want to compete, and we want to offer more choice in the marketplace… That becomes very challenging when your biggest competitors, who have many advantages over you, are empowered by the regulator to compete unfairly against you,” said Cowling.

For example, this decision would give Telus, which is strong in Western Canada, the opportunity to use other providers’ networks to add thousands of customers in Ontario and Quebec instead of building its own infrastructure.

Bell Canada’s executive vice president, Robert Malcolmson, recently said that “as a direct result” of the policy, his company has reduced its capital expenditures by $500 million in 2025 alone and by over $1.2 billion since the CRTC’s initial decision in November 2023.

“The CRTC policy will continue to have major negative impacts well into the future,” he wrote in a scathing statement .

In the meantime, Telus keeps telling Canadians how important this policy is. The Vancouver-based provider launched a petition online that has gained over 300,000 signatures to support the CRTC decision.

In the petition description, Telus writes “the federal government tried to limit competition, and could do so again” and that “some home internet carriers are still trying to restrict the brands you can choose from.”

“Upholding the decision reinforces the independence of expert regulators, which is necessary to create the certainty needed for Canadian businesses to continue to invest with confidence,” said Telus director of public affairs Richard Gilhooley.

Recently, B.C. premier David Eby said he was “pleased to see CRTC’s decision to uphold its ruling allowing for greater competition.”

“This is great news for BC headquartered Telus and for jobs in BC,” he wrote on social media.

According to a recent PricewaterhouseCoopers (PwC) report , the telecommunications sector contributed an estimated $87.3 billion to Canada’s GDP last year.

Now, internet carriers like BCE and Cogeco argue that sustaining this level of economic impact requires a regulatory environment that supports continued investment.

“And what we need in this country right now is more investment. We need more investment in strong digital infrastructure, other telecommunications networks… Our economic ambition is really dependent on having strong connectivity in our economy today, nothing works without connectivity,” said Cowling.

National Post

• CRTC says its wholesale internet rules balance need for competition and investment
• CRTC gets new policy direction to prioritize telecom competition, affordability

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