Bell, MTS at odds in separate appeals of CRTC rulings
Both companies have asked federal government for reversals, but for different reasons
Last Updated: Thursday, March 12, 2009 | 2:54 PM ET
CBC News
Related
Internal Links
External Links
(Note: CBC does not endorse and is not responsible for the content of external sites - links will open in new window)
BCE Inc. has asked Prime Minister Stephen Harper and his cabinet to reverse a CRTC ruling that requires Bell to provide wholesale internet service providers access to the same speeds Bell offers.
Bell said Thursday the CRTC decision, made in December and reaffirmed on March 3, discourages investment in broadband and next-generation networks and will be harmful to the Canadian economy.
In particular, Bell residential services president Kevin Crull said the decision "alters the financial case for the $700 million we are investing in accelerating the deployment of our next-generation fibre over the next three years."
The Canadian Radio-television and Telecommunications Commission issued the decision in December ordering Canada's big phone companies, including Bell and Telus Corp., to offer the same internet speeds to smaller wholesale customers as they themselves sell on a retail basis.
Under existing CRTC rules, the big phone companies are required to rent out their networks to smaller service providers, who then sell internet access to their own customers. The rules boost the number of competitors selling internet access to the public, and thus keep prices down and service levels up.
The regulations, however, have only applied to older infrastructure based in phone companies' centralized office buildings. Phone companies have recently been pushing their networks out of those buildings by putting new equipment into street-side cabinets in an effort to boost their customers' internet speeds.
Selling slower speeds
But small ISPs haven't had regulated access to those cabinets, meaning they have been limited to selling slower speeds than those offered by big phone companies.
The CRTC decision came in response to a filing by Cybersurf Corp, an independent ISP based in Calgary, in June.
Cybersurf had asked the regulator to force the phone companies to automatically offer matching speeds to small ISPs. The CRTC partially granted the request, requiring phone companies to offer faster speeds to wholesale ISPs but only when they sell them on a retail basis in a given area.
Bell's request came the same day MTS Allstream Inc. announced it had petitioned the federal cabinet to overturn a separate decision by the CRTC that excluded ethernet access from the list of essential facilities phone companies had to make available to competitors.
MTS said Thursday the decision puts smaller competitors at a competitive disadvantage when offering services to business customers.
"As it did for the wireless industry, the government can deliver the benefits of competitive market forces to all Canadian businesses by ensuring the CRTC uses smart regulation to prevent the de-regulated former monopolies from being able to raise prices with impunity," said MTS Allstream chief corporate officer Chris Peirce in a statement.
Tricky navigation
Telecom consultant Mark Goldberg said the two CRTC issues are distinct but both ultimately touch on broadband policy, and the CRTC's tricky navigation of two opposing viewpoints: whether levelling the playing field leads to competitive choice or stifles innovation and the expansion of networks.
MTS argued in its appeal the CRTC has refused to mandate former monopoly telephone companies to provide competitors with fair access to the local broadband networks, leading to higher prices for consumers.
But Bell took the opposite approach in its statement, saying the regulations create a disincentive for phone companies to expand their networks, and that this ultimately will hurt the economy.
Bell senior vice-president of regulatory affairs Mirko Bibic said "urgent" action was needed.
"The cabinet needs to act urgently to prevent the further damage to the Canadian economy that would result from a slowdown in investment in a sector crucial to all Canadians," he said in a statement.
Share Tools
Top News Headlines
- U.K. attack suspects were focus of past security probes
- WARNING: This story contains graphic content. Two men accused of butchering a British soldier had featured in previous investigations by security services, a British official said, as investigators tried to determine whether the men were part of a wider radical Islamic plot. more »
- Neil Macdonald: Harper no Obama when it comes to dealing with scandals
- Beset by three so-called scandals at the moment, Barack Obama has been meeting his accusers and the press head on, Neil Macdonald writes. The same cannot be said for how Stephen Harper operates. more »
- Needed: New approaches to defuse 'suicide contagion' among teens
- Mental health experts say we need to find new ways to refer to and discuss suicide, particularly now that a large medical study has confirmed that teens are more susceptible to the idea if they know a schoolmate who died that way. more »
- Man in chained-teen case pleads guilty to sex assault, kidnapping
- A man accused of chaining up a teenager and sexually assaulting him last fall at a home in rural Nova Scotia has pleaded guilty to some of the charges against him. more »
Must Watch
Latest Technology & Science News Headlines
- Arctic bacteria discovered breeding at record –15 C
- Bacteria that can live and multiply in High Arctic permafrost at temperatures well below the freezing point of water have been discovered by a Canadian-led team of researchers, offering clues about the types of organisms that might exist in similar extreme environments elsewhere in our solar system. more »
- Video forensics: How easy would it be to fake a Rob Ford video?
- Two media outlets reported last week that they had seen a cellphone video of Mayor Rob Ford allegedly smoking crack, a claim that has gone global. If a video does surface, how easy would it be to determine its authenticity? CBC News asked video forensic analyst David McKay. more »
- Internet bill would unlock personal details, says watchdog
- The Harper government's recent bid to give police more information about Internet users would have unlocked numerous revealing personal details — from web-surfing habits to names of friends, says a new study by the federal privacy watchdog. more »
- Xbox One: A closer look
- The design, performance, Kinect camera, controller, requirements and limitations of Microsoft's Xbox One get a critical look. more »
- RCMP Google Doodle salutes 140 years of Mounties
- Google Canada has marked the 140th anniversary of the founding of the North-West Mounted Police, the force that would later merge with the Dominion Police to become the RCMP. more »
Bob McDonald's Blog
Chris Hadfield: The gravity of gravity May. 17, 2013 9:58 AM After five months of being Superman and a media superstar, Canadian astronaut Chris Hadfield is now beginning the challenging task of adapting his mortal body and brain to life back on Earth.
Quirks & Quarks
- May 25: The Origin of Feces May. 23, 2013 9:43 AM Cow pies, scat, droppings, guano, dung, manure, night soil, poop, fecal matter, sh*t. Call it what you may, excrement plays a crucial role in evolution, culture and the environment.
Latest Features
- 2nd suspect in Tim Bosma case now in court for murder charge
- 2nd suspect named in Tim Bosma slaying
- U.K. attack suspects were focus of past security probes
- Mike Duffy's primary home not P.E.I., unedited Senate report says
- Killing near London barracks probed as 'terror' act
- Neil Macdonald: Harper no Obama when it comes to dealing with scandals
- Senators' Alfredsson on defeating Penguins: 'Probably not'
- 1.3 million Montrealers face boil water advisory
- Man in chained-teen case pleads guilty to sex assault, kidnapping

