N.S.-based internet provider cries foul over federal regulations
A Nova Scotia-based internet company is facing challenges in competing against Canada’s big three internet providers — Telus, Bell, and Rogers — due to the current regulatory setup. Eastlink’s executive vice-chair, Lee Bragg, expressed disappointment with Ottawa’s decision to uphold a CRTC ruling on wholesale internet access that allows large telecommunications companies to provide service to customers using the fibre networks of smaller, regional providers.
Bragg believes that this policy gives an unfair advantage to the major providers, making it difficult for smaller companies like Eastlink to compete. He stated that the ability for larger companies to bundle services and leverage their retail presence puts smaller providers at a disadvantage.
As a result of the federal government’s decision, Eastlink is considering shutting down operations in some small, money-losing rural markets. Bragg mentioned that a significant number of communities could be affected, impacting not only Atlantic Canada but also rural parts of Ontario, Alberta, and British Columbia where Eastlink operates.
Geoff White of the Public Interest Advocacy Centre agrees with Bragg’s concerns, stating that the CRTC’s policy may stifle competition rather than stimulate it. He noted that the government’s approach to promoting competition in the telecommunications sector has been inconsistent, leading to challenges for smaller providers.
Telus, one of the major players in the industry, is actively campaigning to maintain the status quo and has garnered support through a petition to lobby Ottawa. Telus argues that the current regulatory regime has led to a reduction in internet prices in Quebec and Ontario.
Despite these developments, White believes that the issue is far from over and anticipates further litigation on the matter. He will be monitoring whether the recent CRTC decision to allow big players to share networks will result in changes to home internet prices and customer complaints.
Overall, the debate over regulatory policies and competition in the telecommunications sector continues to evolve, with smaller providers like Eastlink facing challenges in maintaining their market presence against larger players.
