The Canadian Radio-television and Telecommunications Commission (CRTC) has decid

The Canadian Radio-television and Telecommunications Commission (CRTC) has decided to maintain its current approach to setting prices for smaller companies that purchase access to larger carriers' internet networks. The regulator's review concluded that the best way to promote competition is by setting rates for wholesalers based on the service and infrastructure costs of major players, along with a markup.

Several of Canada's larger carriers had called for reforms, arguing that the traditional wholesale rate-setting method resulted in competitors paying them less than the break-even cost. They proposed using commercial negotiations as the primary method for setting wholesale service rates, claiming that it would allow for greater customization and reduce unnecessary regulation.

The CRTC described its current approach as "forward-looking" and stated that once rates are set, they generally remain constant for a five-year period, providing regulatory certainty for all parties involved. However, the regulator also acknowledged the need for improvement and stated that it would consider market rates and other relevant information in its rate-setting decisions. It also expressed openness to using alternative approaches on a case-by-case basis to ensure fair rates in specific situations.

The Competitive Network Operators of Canada, representing independent internet providers, welcomed the decision, expressing optimism that it would lead to reduced wholesale rates. The Canadian Telecommunications Association, which represents organizations investing in and operating telecom services, stated that it is reviewing the decision but did not provide further comment.

In March, the CRTC had announced a 10% reduction in some wholesale internet rates and initiated a separate review of the rates smaller competitors pay to major telecom companies for network access. This ongoing review aims to enhance competition, lower consumer costs, and determine whether large carriers should grant smaller competitors access to their fiber-to-the-home networks to improve internet speeds for customers.

Industry Minister François-Philippe Champagne had directed the CRTC in February to implement new rules to enhance consumer rights, affordability, competition, and universal access, including improved wholesale internet rates.