CRTC finalises wholesale internet rates to benefit independent ISPs

22 Feb 2013

The Canadian Radio-television and Telecommunications Commission (CRTC) has finalised rates for wholesale high speed internet access services used by independent service providers including ISPs, which it says will lead to significant reductions in the wholesale rates certain providers pay to the large network operators. The CRTC noted that the wholesale rates are based on the large telephone and cable network operators’ costs plus a reasonable markup. ‘Large and small independent service providers now have the certainty they need to continue offering Canadians a choice of innovative and competitive services,’ said Jean-Pierre Blais, Chairman of the CRTC. The rates enable large companies to recover their costs and make further investments in their networks, the watchdog claims.

All large telephone and cable companies that provide wholesale high speed access services to independent service providers must now use a single billing model and offer the same rates for business and residential end-users. This will result in a more straightforward billing process for independent service providers, the CRTC stated. Previously, certain large companies charged different rates under different billing models for wholesale and residential business services. The CRTC also expects that the new wholesale rates will have a favourable knock-on impact on prices charged in the competitive retail market.