OTTAWA-GATINEAU, February 21, 2013 Today, the Canadian Radio-television and Telecommunications Commission (CRTC) established final rates for the wholesale high-speed access services used by independent service providers to offer competitively priced Internet and other services. As a result of certain adjustments, some independent service providers will see significant reductions in the wholesale rates they pay.
"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. "We are pleased to finally close this chapter after a careful examination of the wholesale rates, which included a review of the costing information."
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. Previously, certain large companies charged different rates under different billing models for wholesale and residential business services.
The final wholesale rates are based on the large telephone and cable companies' costs, plus a reasonable markup. The rates enable large companies to recover their costs and make further investments in their networks.
Today's decisions apply only to the wholesale high-speed access services the large telephone and cable companies sell to independent service providers. The CRTC does not approve the rates and packages for Internet services offered to Canadian consumers at the retail level. The CRTC expects, however, that the final wholesale rates will have a favourable impact on prices charged in the competitive retail market.