March 9th, 2023 - 7:24pm
FOR IMMEDIATE RELEASE
March 9, 2023
CRTC’S REVERSAL WITH THE WHOLESALE PRICE CUT DEMANDS THE INTERNET SERVICE CONSULTATION BE OPEN TO PRICE CAPS FOR CONSUMERS AND THE SEPARATION OF WHOLESALE AND RETAIL PROVIDERS TO ESTABLISH REAL COMPETITION
CRTC partially reverses itself with a 10 percent whole price cut and initiation of consultation
(WINDSOR)-Today, Brian Masse, MP (Windsor West), welcomed the Canadian Radio-television and Telecommunications Commission (CRTC) partial reversal of their previous decision with a 10 percent price cut to wholesale internet rates and demanded the just launched consultations on how to boost competition in the internet services market and lower prices include the examination of price caps for consumers and the separation of whole and retail sectors to establish significant real competition in Canada’s telecom market. (Link to CRTC announcement: https://www.canada.ca/en/radio-television-telecommunications/news/2023/03/crtc-launches-review-of-approach-to-internet-services-competition-and-lowers-some-wholesale-rates-effectively-immediately.html )
“The 10 percent price cut for wholesale internet rates, while not enough, is an acknowledgment of the grave mistake made in 2021 by the CRTC to raise wholesale rates which drastically reduced competition in the internet services market and forced the elimination of small competitors to the incumbent telecom oligopoly of Bell. Rogers, Telus and Quebecor. The new consultation on the internet service market and how lower prices needs to focus on price caps and the separation of the wholesale and retail markets, which is what other countries have done which have led to drastic price reductions.” Masse stated.
In 2021, the CRTC scrapped a 2019 decision which would have lowered wholesale rates following lobbying from telecom giants Bell and Rogers as well as some regional providers. This led to smaller competitors being bought by large incumbents such as Distributel being purchased by Bell and others at risk of exiting the market. Consumer prices were raised after the CRTC decision.
Canadians pay some of the highest prices for mobile wireless and broadband subscriptions in the world. For decades, Liberal and Conservative governments abandonment of any price regulation and service standards since 1993 and relied on market forces and supposed competition to determine what Canadians pay. The results have been Canada’s cost-per-gigabyte is seven times more expensive than Australia, 25 times more than Ireland and France, and 1,000 times more than Finland, according to the analysis by experts. The profit margins have reached an astonishing 46.2 per cent on average for Roger, Bell and Telus.
“We can do what works in other countries. We could even follow what Canada has done to build a universal and affordable landline phone service. It was done through significant regulation of prices and service standards by the CRTC. We need to return to what works and not continue with 30 years of market failure,” Masse stated.
For more information on Masse’s work on telecom issue follow this link: https://www.brianmasse.ca/?s=masse+crtc
For more information contact Mohummed Peer 519-982-8816.