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Briefing

Federal Court of Appeal rules against big telecoms in fight over internet prices

The court decided that large telecoms like Rogers and Bell need to significantly lower the wholesale rates they charge smaller internet service providers for the use of their networks, as ordered by the Canadian Radio-television and Telecommunications Commission (CRTC). (The Logic)

Briefing

Federal Court of Appeal rules against big telecoms in fight over internet prices

By Zane Schwartz
Sep 10, 2020
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The court decided that large telecoms like Rogers and Bell need to significantly lower the wholesale rates they charge smaller internet service providers for the use of their networks, as ordered by the Canadian Radio-television and Telecommunications Commission (CRTC). (The Logic)

Talking point: In August 2019, the CRTC set new rates, with the goal of fostering competition among telecoms and lowering prices for Canadians. The large telecoms quickly challenged that rate cut, arguing that the regulator lacked the proper jurisdiction. The court rejected those arguments in this ruling, ruling 3-0 in the smaller telecoms’ favour. That said, this dispute isn’t over. First, the ruling states that new rates won’t come into effect until the final judgment on the appeals. Second, the large telecoms can try to appeal to the Supreme Court. The CRTC is also examining the rates it set, and the federal government has said it may weigh in at some point. However, there are a number of aspects of today’s ruling that favour the smaller telecoms. For one, the court ordered the large telecoms to cover the smaller ones’ costs. The smaller telecoms are celebrating, with Distributel CEO Matt Stein calling the ruling “a massive win for Canadians.”

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