Vidéotron signs high-speed resale agreements with two internet providers

Vidéotron ltée became the first cable operator to comply with the CRTC's order to resell high-speed Internet service to independent Internet service providers (ISPs) last week, but the battle over third-party access is far from over. The Canadian Association of Internet Providers (CAIP) quickly fired off a letter to the commission asking it to force Vidéotron to charge wholesale rates that are 25% lower than the price it charges its cable subscribers. CAIP maintains that a December 10 CRTC ruling denying Cogeco Cable Inc's challenge of the September resale order states clearly that cablecos must discount from the lowest retail rate, which in Vidéotron's case is $29.95/month, the rate it charges its cable customers. But Vidéotron is reportedly charging Net Communications Inc and NetAxis Inc a wholesale price of $29.96, which is a discounted rate from the $39.95 Vidéotron charges non-cable customers for its high-speed Internet service. Vidéotron interprets the CRTC's December 10 ruling to mean that it must discount from its regular price, which it says is $39.95. The CRTC's resale order, Telecom Decision 99-11, has taken on a life of its own, with numerous legal and regulatory challenges and requests for clarifications being filed it seems daily. Even though it missed the CRTC's resale deadline by two days, Vidéotron appears to be the only cableco to sign high-speed Internet resale agreements with ISPs to date. "No one can say that we dragged our feet in this matter or that our rates are unfair," Vidéotron said in a statement, adding that it intends to pursue negotiations with other ISPs to achieve other similar agreements. As the December 13 deadline to comply with the resale directive approached and it appeared no cablecos were going to comply with the CRTC's order, CAIP sent a letter to the CRTC demanding action from all cablecos and Vidéotron in particular. CAIP also raised concerns that some cablecos were demanding a $25,000 initiation fee, something they say is not provided for in Telecom Decision 99-11. CAIP is weighing its options on how to get all cablecos to comply with the CRTC's resale order. It can go back to the commission and demand compliance or it could decide to settle the issue once and for all through the courts. The CRTC's ruling on Cogeco's review and vary application should have clarified many of the issues relating to the resale order, but CAIP's most recent letter to the regulator about the rates being charged by Vidéotron show that's not the case (CCR, November 10/99). Earlier this month, the commission settled a major issue of contention between cablecos and ISPs when it ruled that cablecos were not required to provide ISPs with cable modems under the resale directive. The CCTA had asked the commission for clarification on the issue because cablecos and ISPs disagreed on the intent of the resale order. Cablecos maintained that they were not required to provide ISPs with modems, while ISPs argued otherwise. On December 20, Cogeco argued before the Federal Court of Appeal for a stay of Telecom Decision 99-11. As cablecos and ISPs squabble about resale, cablecos are busy trying to complete cost studies for high-speed access tariffs. Proposed tariffs filed by Cogeco, Vidéotron, Rogers Cablesystems Ltd and Shaw Cablesystems Ltd with the CRTC in early November are preliminary because high-speed access is still being tested. Rogers has proposed per-user charges of $29/month, Cogeco proposes $42.25, Shaw's is $40.45, and Vidéotron's is $33.25. The "big four" cablecos are proposing one-time installation and other charges totaling hundreds of dollars in addition to monthly fees.

Vidéotron signs high-speed resale agreements with two internet providers

News | 12/22/1999 5:00 am EST

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