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May 26, 2022 4:35 pm  #1


Feds Say No To Internet Price Hike Appeal But Issue New CRTC Orders

And the answer is - no. 

To the surprise of absolutely no one, the federal government has refused to reverse a CRTC decision that would quickly lower Internet rates for independent companies that allowed consumers to get web access for less money. It was a story highlighted on SOWNY just two days ago. 

The Commission originally had ruled in favour of the smaller guys, hoping to spark competition but then CRTC chair Ian Scott - a former Telus lobbyist - suddenly and inexplicably reversed that edict, forcing prices up and threatening the very existence of the smaller companies. 

Some have already thrown in the towel and gone out of business.

It appears the government, however, is trying to buy itself some time from the wrath of what is sure to be angry consumers, even though it was the feds who promised in previous election campaigns to reduce the costs for the average customer. 

So how are they planning to fix this mess? They've issued a press release filled with a ton of mumbo jumbo that almost assuredly means they won't - and hope you'll forget. Here are the new marching orders given to the CRTC on Thursday: (Seems odd, since they didn't obey them the last time.)


  • requiring large companies to continue to give access to competitors at regulated rates so they can offer better prices and more choices to Canadians. The CRTC must take action to have more timely and improved wholesale rates available.
  • directing the CRTC not to phase out the existing model for wholesale access by third-party competitors and instead preserve and strengthen it in conjunction with the introduction of a new access model that it is planning to introduce.
  • directing the CRTC to ensure that wholesale Internet access is available evenly across the market, including on fibre-to-the-home networks.
  • requiring large companies to make the speeds that Canadians are demanding available to competitors.

Hands up anyone who thinks any of these things will ever come to pass. Bueller? Bueller?

Even if the CRTC were to administer some of these less-than-specific guidelines, by the time they're implemented, many of the small providers will be long bankrupt. 

As for Canada's excessive cell phone rates, they address that, too:

  • directing the CRTC to improve its hybrid mobile virtual network operator (MVNO) model as necessary. The government is prepared to move to a full MVNO model, if needed, to support competition in the sector.

What, exactly, does "as necessary" mean? They don't say and we don't know. 

And finally, there's this little nugget:

  • directing the CRTC to use the tools available to gather the necessary information to make sound decisions while being more proactive in strategic planning and market monitoring.

"Sound decisions?" The CRTC? Why start now? 

Ottawa rejects internet rates appeal, sets new CRTC policy to boost telecom competition

Read the government press release here.

 

May 26, 2022 5:10 pm  #2


Re: Feds Say No To Internet Price Hike Appeal But Issue New CRTC Orders

The CRTC Theme Song?

     Thread Starter
 

May 26, 2022 6:13 pm  #3


Re: Feds Say No To Internet Price Hike Appeal But Issue New CRTC Orders

F*ck Trudeau.

 

May 26, 2022 6:46 pm  #4


Re: Feds Say No To Internet Price Hike Appeal But Issue New CRTC Orders

Forward Power wrote:

F*ck Trudeau.

And if it was a conservative in power, nothing would be done either.   I say F*ck the voters for falling for the same BS from the same people all the time. 

It's time people sent a message... a strong message and send all of these Red and Blue parties packing...  Clean house, new ideas.   

 

May 26, 2022 7:13 pm  #5


Re: Feds Say No To Internet Price Hike Appeal But Issue New CRTC Orders

While I'm no fan of this Prime Minister for a number of reasons, I actually don't blame him for this. The CRTC is an arm's length entity and does not take direct orders from the government. 

The feds can suggest which direction it wants the Commision to go, but is not able to directly order them to do anything. Instead, they suggest policy in the hopes the CRTC will follow it. (Another reason Bill C-11 worries me so much. Putting this bunch in charge of Internet content frankly scares the hell out of me.)

But as long as Ian Scott is the chair, I suspect those requests will go unanswered. His actions while in that office pretty well speak for themselves, constantly seeming to favour giants like Bell and Rogers at the expense - and "expense" is certainly the operative word - of consumers. His record speaks for itself. What it says is not very pretty. 

If he told me his first name was "Ian," I would not believe him. That's why I'm concerned that these new marching orders will be either ignored or completely twisted around to once again somehow benefit his good friends at the telcos and cable companies. 

I believe the fix is in. And sadly, for the moment at least, I don't think there's any way of fixing that. 

     Thread Starter
 

May 26, 2022 7:31 pm  #6


Re: Feds Say No To Internet Price Hike Appeal But Issue New CRTC Orders

Some of the smaller independent operators have said that they will go out of business or have lost 20-25% of their customers since they had to raise rates.  How much did monthly bills actually go up on average?   I thought I read one operator mentioned months ago that they would need to increase the average invoice by $3 per month. 

How much were their customers paying per month in the first place?  Also for comparable service, how do the prices stack up to the conglomerates?  Prices from the smaller operators are lower but by how much?  If the price difference is that dramatic for the same services, why have more people not moved to the independents over the years?  

 

May 29, 2022 8:59 am  #8


Re: Feds Say No To Internet Price Hike Appeal But Issue New CRTC Orders

The reaction from the independent providers is pretty predictable. They're not happy about the decision to leave the rates alone, but at least one of them believes there may finally be some progress in the area of pricing, fairness and competition - but even they admit it's still a long way off. 

Smaller telecoms cautious on Ottawa’s new CRTC policy directives

     Thread Starter
 

May 29, 2022 5:49 pm  #9


Re: Feds Say No To Internet Price Hike Appeal But Issue New CRTC Orders

paterson1 wrote:

How much were their customers paying per month in the first place?

I was a Teksavvy customer for 5 years.  I had a "lite" internet service, primarily used as a security monitoring connection on a house.

It was the cheapest service I could find (5Mb/down & 1Mb/s up).  The big boys did not even offer such a basic service.  It used the Rogers coaxial backbone.

I was initially paying $24.95/mo which was "OK" for this small bit of bandwidth.

The rate went up to $34.95/mo (40% increase) after the CRTC decision reversal.

So much for lowering internet costs.