Telecom Decision CRTC 2023-217

Final offer arbitration between Quebecor Media Inc. and Rogers Communications Canada Inc. regarding wholesale mobile virtual network operator access rates

Telecom Decision CRTC 2023-217 is giving facilities-based regional telecom service providers (TSPs) who operate regional cellular networks access to large incumbent provider cellular networks.  Also known as Mobile Virtual Networks Operators (MVNOs) these regional facilities-based providers will now be able have their traffic transited over incumbent systems from across Canada.  The decision sets a precedent, by fixing the rate that Quebecor Media Inc. (Quebecor) will pay Rogers Communications Canada Inc. (Rogers) when offering services using Rogers' wireless network across Canada.  However, MVNOs, who have no facilities, as may be found competing in the US, UK, and Europe will not be granted access, which will severely limit the pace at which competitors come to market and the level of competition that is ultimately achieved.

While this policy will allow regional companies to compete using the networks of large companies, the decision requires that these regional companies have their own regional cellular infrastructure in place today and within seven years of gaining MVNO access they must have built their own national networks. So, while the decision is somewhat favourable to competition and consumers in the short-term, it is unfavourable to competition and consumers in the long-term.

The fact that the CRTC continues to cleave to the failed “facilities-based competition regime” model will mean that billions of dollars may be expended to redundantly overbuild existing wireless infrastructure across Canada (including likely subsidies from taxpayers). Just like it has been done by the large incumbents, the regional providers will build to the densely populated, higher-income neighbourhoods first, along high-traffic roadways, in order to ramp-up revenue generation quickly, while rural Canadians along county roads wait. As happened with facilities-based competition in wireline infrastructure, many of these regional companies will be acquired by the large incumbents as some struggle and others become too successful at competing so they are taken off the board (e.g., Bell - Distributel).  So, in seven years or so, we’ll be right back where we started with only 3 national wireless service providers, who also happened to be the 3 dominant wireline providers.

Keeping in mind that telephone and Internet, like water and electricity, are essential public services; whose availability to all Canadians should be mandated on an equitable basis, not provided at the whim of private companies due to weak, misguided, or captive regulators and legislators.