Cheaper internet service possible after CRTC ruling
Some independent internet providers may be able to offer lower prices to consumers after a ruling issued Thursday by Canada's telecommunications regulator.
Such smaller internet providers rent network access from larger companies such as Bell and Rogers to connect their own networks directly to their customers' homes.
On Thursday, the Canadian Radio-television and Telecommunications Commission set the final rates that larger internet providers can charge small internet providers for such "wholesale" access.
"As a result of certain adjustments, some independent service providers will see significant reductions in the wholesale rates they pay," the CRTC said in a news release.
In particular:
Rates for business internet services will be the same as residential, rather than higher as originally proposed.
Bell's wholesale customers in Ontario and Quebec and Telus's wholesale customers in Alberta and B.C. will get rates "significantly lower" than those originally approved after costing errors were discovered in the studies they submitted to the CRTC.
Cogeco's wholesale customers will also get a lower rate.
However, rates are now higher for customers of Rogers, Shaw and Videotron "due to the correction of certain cost methodology assumptions," the CRTC ruled.
"Large and small independent service providers now have the certainty they need to continue offering Canadians a choice of innovative and competitive services," said CRTC chair Jean-Pierre Blais in a statement. "We are pleased to finally close this chapter."
