Shaw said the ruling would cost it $10 million and it is also reviewing network infrastructure investments as a result of a CRTC ruling earlier this week that reduced the prices smaller internet providers must pay larger ones to access their infrastructure. Vidéotron said it would cost it $50 million. (The Logic)
Talking point: Shaw’s statement echoes similar concerns raised by Rogers, Cogeco and Bell. The five telecoms are claiming the CRTC’s decision is costing them a combined $325 million. Telus did not reply to multiple requests for comment about its stance on the decision. The larger telecom companies maintain that their proposed rates for third-party resellers are necessary to support continued development of infrastructure, but the CRTC has repeatedly said that their cost calculations deviate from industry-standard methodologies—and, in its recent ruling, it determined Shaw, Rogers, Vidéotron and Cogeco had made computational errors in some of their calculations. In particular, the regulator said their proposed rates both fail to adhere to regulations on how to conduct cost studies, and were inflated by a failure to adjust for when costs vary with changes in usage levels, or when costs are reduced because they share facilities with other services.