The Canadian Radio-television and Telecommunications Commission (CRTC) ordered, in August 2024, that all broadband providers in the country open their networks to competitors on a wholesale open-access network. The original unbundling order applied to broadband provided on both cable TV and fiber networks. The original ordered that open-access be implemented by February 2025.
Similar to what happens in the U.S., various aspects of the rule were appealed at the CRTC. Through orders issued in June and August, the CRTC has modified a few requirements, but largely affirmed its original order and intent to require open-access.
While the order refers to this as open-access, a better analogy for the Canadian product is akin to what we call resale in the U.S. In Canada, the underlying network owner is still configuring the speed and delivering the product, and the open-access company is rebranding the product and selling and billing it to customers. Most U.S. open-access networks require ISPs to bring the backbone Internet and to set speeds and layer on additional products. However, some open-access sellers in the U.S. are closer to the Canadian model.
In October 2024, the CRTC set interim open-access rates for the largest ISPs. The three biggest ISPs in the country are Bell Canada, Telus, and Rogers. The rates are fairly high compared to many of the open-access rates in the U.S. A few examples:
- Buying a broadband connection on the Bell networks at speeds up to 1,500 Mbps is $68.95 Canadian ($49.91 U.S.). Speeds greater than 1,500 Mbps are $78.03 ($56.50 U.S.).
- The connection on Telus in Quebec for all speeds is $65.25 ($47.24 U.S.) while the rate in British Columbia is $80.41 ($58.22 U.S.).
- Connection rates for SaskTel for all speeds are $77.57 ($56.16 U.S.).
- CRTC also set standard rates for activities like service activation, moves and changes, and site visits.
The new orders made some refinements to the open-access rules:
- Fiber deployed by Bell Canada, SaskTel, or TELUS after August 13, 2025 will not be made available for open-access until August 13, 2029. This will give fiber builders a head start in connecting customers on new networks.
- The largest ISPs (both fiber providers and cable companies) can’t buy wholesale access on smaller ISPs within their traditional monopoly territories. This ruling is to push the big companies to expand networks and not rely on networks already built by smaller companies.
Four ISPs – Eastlink, Cogeco, the Competitive Network Operators of Canada, and SaskTel – had petitioned the CRTC to not allow the largest three ISPs to buy wholesale access on their networks. The most recent ruling said that everybody has to open their networks to competition. Cogeco has already said that it plans to take this new decision to court. Until now, the petitions were within the CRTC.
Numerous ISPs filed comments with CRTC saying that this ruling is a disincentive to building new fiber networks. The smaller companies fear that the biggest ISPs will win most of the customers on their networks due to their marketing advantage, and they said this will force them out of the business.
CRTC says it is going to closely monitor the competitive situation. As of the date of the recent orders, there has not been a lot of wholesale activity.
Sadly, this is bullshit. “Open Access” was first ordered in Canada in 1996. It is the implementation that is the issue and I could talk about this for days. Doug, I have been running Tucows for nearly 30 years. I met the people who gave me the opportunity in an ISP group working with these same incumbents on implementation. Canadian politicians excel at generating headlines like this while continuing to coddle incumbents in the most expensive telecom market in the developed world.
That sounds incredibly familiar!