1 of 1- RadioActive
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CRTC Orders Some Internet Wholesale Rates Reduced 10% Immediately
So maybe the new CRTC Chair is the real deal after all. The Commission admits Internet rates are way too expensive, so it's ordered a 10% reduction on some wholesale rates for web access. The devil in the detail, of course, is what that "some" means. But it's a start.
"The CRTC recognizes its current approach is not meeting its objective of encouraging more competition in the Internet services market."
CRTC Announcement
- RadioActive
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Re: CRTC Orders Some Internet Wholesale Rates Reduced 10% Immediately
Just off the phone with my provider, TekSavvy, one of a shrinking breed of independent ISPs not being gobbled up by Bell or Rogers. When I asked if that "immediate" 10% reduction applied to them, they said they didn't know yet but would be informing customers when a determination is made.
I realize the info is new so they're still processing it, but it all depends on what that "some" word means. The last time the CRTC issued an edict on reducing Internet rates, TekSavvy (and some of its then competitors) immediately announced major rate reductions for their subscribers.
But despite the federal government insisting it wanted the Commission to reduce costs for ordinary consumers, then-Chair Ian Scott suddenly and inexplicably reversed the decision a few months later, leaving the private providers in a terrible spot and forced to raise their prices. (You may remember that week - it was the same one the redoubtable Mr. Scott, a former telco lobbyist, was seen having a beer in an Ottawa pub with Bell CEO Mirko Bibic. He was officially cleared of any questionable behaviour, but suspicions linger.)
So will your bill go down even a little? Stay tuned. This should be interesting.
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Thread Starter- PwrSurge
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Re: CRTC Orders Some Internet Wholesale Rates Reduced 10% Immediately
RadioActive wrote:
When I asked if that "immediate" 10% reduction applied to them, they said they didn't know yet but would be informing customers when a determination is made.
I realize the info is new so they're still processing it, but it all depends on what that "some" word means. The last time the CRTC issued an edict on reducing Internet rates, TekSavvy (and some of its then competitors) immediately announced major rate reductions for their subscribers.
The rate reduction does apply for wholesale access costs of all independent Internet providers such as SkyChoice and TekSavvy that offer some services in certain areas that they can't provide natively using big telecom's "last mile" facilities. However, one must keep in mind that indie ISP's have been eating the costs of offering these services for quite some time, so we should not expect the full 10% reduction to be passed on to us consumers.
10% is not that much at the end of the day and I suspect that most of these providers will need most of this amount just to secure themselves financially and prevent being forced to sell out like the 8 independent providers who already got acquired over the past 12 months by Bell, Videotron and TELUS.
Another important thing to consider is that any CRTC decision including this one can be appealed all the way to the Supreme Court so no provider will lower rates until all appeal options have been exhausted. Based on past experience, it is almost certain that today's decision will be appealed at least once which will result in a delay until heard. Any provider would be foolish to prematurely reduce their rates before all appeal options are exhausted and potentially lose millions like TekSavvy did when the CRTC made their previous decision to lower rates which never got implemented due to appeals and got overturned back in 2019.
Last edited by PwrSurge (March 8, 2023 12:21 pm)
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Re: CRTC Orders Some Internet Wholesale Rates Reduced 10% Immediately
I think you're right. Once burned, twice shy, as they say. I'm all for TekSavvy leaving the price alone for now, if only to protect their very existence. Those paying attention to this will note that private ISPs are being bought up left and right by the Big 3, as a means to reduce competition. So if a price freeze is what my provider has to do to survive, then so be it.
The CRTC has also launched a consultation seeking public input on Internet pricing competition. I can't wait to read those submissions!
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Thread Starter- RadioActive
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Re: CRTC Orders Some Internet Wholesale Rates Reduced 10% Immediately
From the Toronto Star:
"[CRTC Chair] Vicky Eatrides said she expects the formal, in-person hearing to review the wholesale regime will take place in early 2024.
In the meantime she said the CRTC could tweak the interim rates further if warranted. She said the review could lead to even more aggressive regulation, including the CRTC directly setting the internet rates Canadian consumers pay.
“If this fails and doesn’t produce the results that we want, retail regulation is not off the table."
Not sure how comfortable I am with government telling a business what they can and cannot charge, but this infernal and unfair monopoly has to be broken up somehow.
Are Canadian internet prices about to go down? CRTC cuts wholesale rates by 10% in bid to spur competition
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Thread Starter- RadioActive
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Re: CRTC Orders Some Internet Wholesale Rates Reduced 10% Immediately
The rate reduction does apply for wholesale access costs of all independent Internet providers such as SkyChoice and TekSavvy that offer some services in certain areas that they can't provide natively using big telecom's "last mile" facilities. However, one must keep in mind that indie ISP's have been eating the costs of offering these services for quite some time, so we should not expect the full 10% reduction to be passed on to us consumers.
10% is not that much at the end of the day and I suspect that most of these providers will need most of this amount just to secure themselves financially and prevent being forced to sell out like the 8 independent providers who already got acquired over the past 12 months by Bell, Videotron and TELUS..
Looks like you were right in your prediction. As usual, the consumer will be the last on the list to benefit from any reduction, regardless of the CRTC's "best intentions."
CRTC-mandated rate cut won’t lower consumers’ internet bills, independent ISPs say
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