New federal telecom policy will require CRTC to enact rules to improve competition

By The Canadian Press on February 13, 2023.

OTTAWA – The final version of a new telecom policy directive first unveiled by the federal government in May of last year is now in force.

The federal government says its new directive to the Canadian Radio-television and Telecommunications Commission (CRTC) means the agency must put in place new rules to improve competition in the telecom industry.

The directive rescinds a 2006 policy direction that said the CRTC should rely on market forces in making decisions.

Instead, the federal government is emphasizing consumer rights and affordability by requiring the CRTC to take action to have more timely and improved wholesale internet rates available.

The government is also directing the CRTC to improve its hybrid mobile virtual network operator (MVNO) model and says it is prepared to move to a full MVNO model to support competition if necessary.

MVNOs are wireless providers that buy cellphone network service from the big carriers at a wholesale rate and then sell access to customers at a more affordable rate.

Too-high wholesale rates discourage competition, but rates set too low discourage the company’s largest telecom providers from making costly wireless infrastructure upgrades.

This report by The Canadian Press was first published Feb. 13, 2023.

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