The Canadian Radio-television and Telecommunications Commission (CRTC) is facing a critical decision that could determine the fate of independent internet service providers (ISPs) in Canada. The regulatory body has been grappling with the issue of mandatory access to major telecommunication networks for over two decades. Paul Andersen, head of the Competitive Network Operators of Canada (CNOC), stated that independent operators have lost nearly 40% of subscribers nationally and almost half in Ontario and Quebec since late 2020.
CNOC membership has dwindled from 31 to 15 in just over three years. The CRTC has been balancing facilitating “third-party internet access” while ensuring fair compensation for companies that invest in and build network infrastructures. The debate centers on whether companies that invest in infrastructure should be mandated to share their networks.
Critics argue that this would stifle free-market principles.
Crucial decision for independent ISPs
However, Canada’s telecom and internet market is heavily regulated and thus not a true free market.
Regulatory decisions can either harm or benefit companies, affecting their ability to offer bundled services of internet, cell phone, cable, and landline packages. The CRTC’s upcoming decision on Telus’s bid to play a dual role in Ontario could be a turning point. If approved, it may lead to fewer independent ISPs, further skewing the market in favor of incumbents.
A rejection would support the CRTC’s vision of maintaining a diverse pool of service-based competitors. The need for regulatory certainty is clear, as the ongoing uncertainty harms the industry by affecting investment decisions for all players. The industry now awaits the CRTC’s final decision, which could reshape the competitive landscape of Canada’s telecom sector.
