Order Referring Telecom Decision CRTC 2023-358 Back to the CRTC
November 6, 2024
Ottawa, ON – The Governor in Council has issued an Order referring Telecom Decision CRTC 2023-358 back to the CRTC for reconsideration and further public consultation.
The decision, which was issued on September 13, 2023, established new rules for the wholesale access and pricing of broadband internet services. These rules were intended to promote competition and investment in the telecommunications sector, but they have been met with significant opposition from some industry stakeholders.
The Order refers the decision back to the CRTC for reconsideration of the following specific issues:
- The impact of the new rules on small and rural telecommunications providers
- The extent to which the new rules will promote competition and investment in the telecommunications sector
- The cost-effectiveness of the new rules
The CRTC has been directed to undertake a new public consultation process on these issues and to submit a revised decision to the Governor in Council by June 30, 2025.
The Order is a significant development in the ongoing debate over the future of the Canadian telecommunications sector. It is likely to have a major impact on the way that broadband internet services are regulated and priced in Canada.
Background
Telecom Decision CRTC 2023-358 was the culmination of a two-year review of the wholesale access and pricing of broadband internet services. The review was prompted by concerns that the existing regulatory framework was not promoting competition or investment in the telecommunications sector.
The new rules established in the decision were designed to address these concerns by:
- Lowering the wholesale rates that telecommunications providers can charge each other for broadband internet services
- Establishing a new framework for regulating the terms and conditions of wholesale access to broadband internet services
- Requiring telecommunications providers to provide more information about their wholesale offerings
Industry Reaction
The decision has been met with mixed reactions from industry stakeholders. Some stakeholders, such as large telecommunications providers, have welcomed the new rules, arguing that they will promote competition and investment in the telecommunications sector. Other stakeholders, such as small and rural telecommunications providers, have expressed concerns that the new rules will have a negative impact on their businesses.
The Canadian Internet Registration Authority (CIRA) has also expressed concerns about the decision, arguing that it could lead to higher prices for broadband internet services for consumers.
Government Response
The Governor in Council’s decision to refer the decision back to the CRTC for reconsideration is a significant development. It indicates that the government is concerned about the potential negative impact of the new rules on small and rural telecommunications providers.
The government has directed the CRTC to undertake a new public consultation process on the issues raised in the Order. This process is expected to take several months.
The CRTC has not yet announced the specific process that it will follow for the reconsideration of the decision. However, it is likely that the process will involve a public hearing and the submission of written comments.
The outcome of the reconsideration process is uncertain. It is possible that the CRTC will make significant changes to the decision. However, it is also possible that the CRTC will uphold the decision, with or without minor modifications.
Order Referring Telecom Decision CRTC 2023-358 Back to the CRTC
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