The federal government says it’s concerned that a controversial regulatory decision last year may undermine investments in Canada’s communications networks, particularly in rural and remote areas.
However, a statement issued Saturday morning by Navdeep Bains, on behalf of the federal cabinet, says it won’t intervene in the CRTC’s ongoing review of its own decision about wholesale internet rates.
“Our government is working hard to make sure that all Canadians have the access to high-speed Internet,” said Bains, who is minister for innovation, science and industry.
“We encourage all parties to cooperate in the CRTC’s ongoing review of the rates decision to support a timely conclusion that will provide more certainty for all involved parties.”
That CRTC decision issued Aug. 15, 2019, has been praised by Canada’s independent internet service providers but denounced by the large phone and cable companies who say the rates would be far too low.
Both sides of the argument have spent the past year lobbying the government, as well as fighting each other at the Federal Court of Appeal and before the Canadian Radio-television and Telecommunications Commission.
The statement issued by Bains, who wasn’t available for comment Saturday, suggests but doesn’t say out-right that the arms-length regulatory body needs to re-think how it arrived at its conclusions after years of study and analysis.
“On the basis of its review, the (cabinet) considers that the rates do not, in all instances, appropriately balance the policy objectives of the wholesale services framework and is concerned that these rates may undermine investment in high-quality networks, particularly in rural and remote areas,” Bains said.
BCE’s Bell Canada, Rogers Communications Inc. and their allies argued the CRTC overstepped its authority by cutting wholesale capacity rates by up to 43 per cent and chopping access rates up to 77 per cent.
Their wholesale customers — labelled “resellers” by their detractors and “independents” by their supporters — have argued that the CRTC’s decision would end years of over charging by the big carriers.
Because the commission is already doing a review of its own decision, Bains said it was unnecessary to refer the decision back to the CRTC for reconsideration “at this time,” but said that the government will continue to monitor the CRTC proceedings closely to ensure it establishes the “right incentives” for both investment and competitive choice.
“Our government recognizes that access to affordable, high-quality high-speed Internet is a necessity for all Canadians, no matter where they live,” Bains said.
“The COVID-19 pandemic has only reinforced the importance of connectivity. The investments our government is making in high-quality networks, particularly in rural and remote communities, are key to ensuring equitable digital access for all Canadians. Equitable access also means that it is available at fair prices that Canadians can afford.”
This report by The Canadian Press was first published Aug. 15 , 2020
