CRTC approves, with changes, Shaw’s 1500 wholesale service

Tuesday the CRTC approved an application by Shaw Communications Inc. to introduce internet 1500 wholesale high-speed access service (1.5 Gig service). It denied three conditions suggested by Shaw and also dismissed a request from TekSavvy Solutions Inc. for administrative monetary penalties (AMP) on Shaw. In May 2020 the western telecom filed a relief application to the commission asking for relief from speed-matching requirements for Shaw’s next-generation broadband service at speeds at or above 1000 megabits per second (Mbps), also known as one gigabit. The relief was pending on two pillars: completion of the regulator’s review of the rate-setting methodology for wholesale telecom services and the elimination of asymmetrical wholesale high-speed access (HSA) obligations between Shaw and the incumbent local exchange carriers (ILECs) in Shaw’s territory. Shaw pointed out that it has been five years since the CRTC mandated competitor access to ILEC fibre-to-the-premises (FTTP) services. The company argued that ILECs enjoy a “regulatory holiday” from mandated wholesale HSA requirements while it and similar cable firms have to contend with asymmetry for all required service speed offerings in the wholesale market. Shaw applied to introduce a wholesale service offering downstream speeds of 1001 to 1500 Mbps and upstream of 100 Mbps. It proposed to charge rates ranging from $101.69 to $127.10. Shaw argued that approval of the relief application would promote facilities-based investment, lead to dynamic competition and promote consumer choice. It submitted that it is unreasonable to file a cost study for Speed Band 10, where the new service is located, while the wholesale rate setting review is being undertaken by the commission. Four questions arose from the filings: should the original telecom notice and the relief application be considered concurrently; what is the appropriate interim rate for 1.5 Gig service and Speed Band 10; are Shaw’s suggested conditions for offering 1.5 Gig service reasonable; and should the CRTC consider AMPs on Shaw. On the first point, the regulator determined the notice should be reviewed independently of the relief application; Shaw’s request to consider both at the same time was denied. Shaw said it was unable to file a cost study while the CRTC is reviewing its wholesale rate-setting methodology. Further, it argued that the usual practice has been for the commission to set interim rates applicable to the nearest lower-speed tier; but in this case that would be Speed Band 7, thus forcing Shaw to sell below cost for the 1.5 Gig service. The Competitive Networks Operators of Canada (CNOC) said Speed Band 8 should be used, thereby establishing the rate at $50.84. The CRTC approved the CNOC suggestion, setting the lower rate. Shaw must file its cost study within 60 days. Shaw requested it be allowed to offer 1.5 Gig service with three conditions: interim rates will remain in place until completion of the CRTC review of wholesale rate-setting methodology; rates will not be subject to retroactive adjustments; and the company would have the ability to destandardize the 1.5 Gig wholesale service following the removal of the service from the retail market. CNOC and TekSavvy both opposed the three conditions. The commission agreed, denying the trio of conditions. TekSavvy had asked for AMPs on Shaw for its failure to file a competitor tariff application the same day it launches the service, the failure to offer the wholesale service on the same day as retail, and deviation from the established rate-setting methodology. The CRTC found that Shaw’s activities were not a violation of commission regulations and denied the application by TekSavvy. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca .

CRTC approves, with changes, Shaw’s 1500 wholesale service

News | April 5, 2022

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CRTC approves, with changes, Shaw’s 1500 wholesale service

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