TekSavvy argues court should ignore cabinet’s wholesale rates decision

TekSavvy Solutions Inc. has asked the Federal Court of Appeal to ignore the language of a recent cabinet decision declaring that the CRTC's wholesale rates were too low to encourage network investment, arguing that the Cabinet decision "has no bearing on this Court’s decision on the appeal." In TekSavvy's Monday letter to the court, the independent internet service provider (ISP) disagreed with BCE Inc.’s argument that the Aug. 15 cabinet decision “vindicates” the concerns of it and a coalition of cable companies, stating that the decision refers to policy considerations, while the Federal Court of Appeal should not. The Cabinet decision declined to overturn the CRTC's 2019 rates for third party wholesale internet access as the CRTC is already considering a review and vary application into the decision, but Innovation Minister Navdeep Bains said that the rates determined by the regulator "do not, in all instances, appropriately balance the policy objectives of the wholesale services framework and is concerned that these rates may undermine investment in high-quality networks, particularly in rural and remote areas.” The Federal Court of Appeal heard arguments across two days in late June and is yet to make a ruling on the incumbents’ challenge. "TekSavvy agrees with suggestion at the end of the appeal hearing that the intended audience for the Cabinet Direction’s provision with respect to specifying policy measures is the Cabinet itself," the ISP argues. "The Cabinet’s or the CRTC’s weighing of policy objectives is of no moment in this appeal." Teksavvy also argues the CRTC’s review and vary process, like the cabinet decision, should not impact the court’s decision. "The Cabinet Decision – and even the CRTC Review and Vary Application, were it to be decided prior to this Court’s decision – are made within their own spheres and have no effect upon this Court’s decision on any questions of law or jurisdiction that are properly before the Court," TekSavvy argues. In Bell's Aug. 20 letter to the court, the company brings up TekSavvy's price increase following the Cabinet decision as evidence that the ISP is backing off an argument that the 2019 policy directive mandates the CRTC confirm the rates. In its own reply to the court, TekSavvy says the inclusion of its price increase and language from its press release into the court proceeding is improper. "This regrettable attempt to adduce new evidence should be wholly dismissed," TekSavvy's letter argues. — With reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Adam Langenberg at alangenberg@thewirereport.ca

TekSavvy argues court should ignore cabinet’s wholesale rates decision

News | August 25, 2020

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TekSavvy argues court should ignore cabinet’s wholesale rates decision

News | August 25, 2020

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