Cogeco defends infrastructure upgrade amid TekSavvy dispute

Cogeco Inc. is adamantly defending its right to upgrade infrastructure for the benefit of its customers in response to TekSavvy Solutions Inc.'s recent Part 1 application regarding decommissioning its coaxial facilities. Cogeco argued that transitioning from coaxial to fibre technologies is necessary for enhancing service quality and speed. Moreover, Cogeco asserts that TekSavvy and other wholesale customers have access to Cogeco's fibre facilities on a disaggregated basis, thus negating claims of unfair competition or restriction of access. The dispute stems from TekSavvy's concerns about Cogeco's decision to replace its infrastructure at two locations in Ontario, namely the Burlington and Windsor sites. TekSavvy urged the CRTC to grant expedited relief, requesting that Cogeco maintain existing infrastructure or provide access to alternative services until the commission issues its decision. "Cogeco is entitled to remove its legacy coaxial infrastructure; wholesale services are available on Cogeco's FTTP infrastructure; FTTP access over aggregated HSA is under consideration… and injunctive relief is unwarranted," Cogeco wrote, noting that TekSavvy has chosen not to utilize these services. Cogeco also argued that TekSavvy would not suffer irreparable harm by losing access to aggregated wholesale access services in two locations. Cogeco filed the number of homes its infrastructure served in confidence but noted that "the vast majority" are not current TekSavvy customers. Bragg Communications Inc.'s Eastlink and Rogers Communications Inc. took Cogeco's side. Eastlink emphasized the rights of facilities-based providers to make independent decisions about network upgrades and decommissioning of legacy technology. Eastlink asserted that maintaining dual technologies incurs additional costs and administrative complexities for providers. Eastlink highlighted the importance of ensuring that network providers are fairly compensated for wholesale access to their facilities, arguing that mandating lower wholesale access rates for upgraded facilities could disincentivize providers from investing in new technologies, ultimately impacting consumers' access to high-quality networks. The Competitive Network Operators of Canada (CNOC) and Public Interest Advocacy Centre (PIAC) have both thrown their support behind TekSavvy's application, echoing concerns about the trend of incumbent providers decommissioning copper and coaxial cable infrastructure. They argue that such actions hinder competition by denying wholesale-based competitors access to end-users. PIAC wrote that this complaint mirrors TekSavvy's complaint against Rogers in 2016. The commission ordered the incumbent to maintain access so that TekSavvy and other competitors could provide high-speed internet services in the Bayview Mills Condominium Townhouse community (Bayview Mills complex.) Rogers had to uphold TekSavvy's access to its existing and new retail end-users through aggregated wholesale HSA service, facilitated over Rogers' FTTP infrastructure. "This case is arguably more egregious as it not only cuts off new end-users, but also existing end-users at the retail level from accessing their services. By not having existing facilities available to competitors to access their end-users for a period of at least three years, Cogeco should be found in violation of Section 27(2)," PIAC argued in its intervention. In its intervention, Rogers said the proposed relief is unprecedented and would impose overly intrusive regulation on carrier network deployment, undermining the efficient operation of telecommunications infrastructure. "This kind of regulation would eviscerate the distinction between carriers that bear the costs and risks of investing in, maintaining and operating network infrastructure and wholesale-based service providers that decline to do so, and undermine the crucial ability of a carrier to deploy its network facilities efficiently and effectively," Rogers wrote. TekSavvy also requested a show-cause proceeding to scrutinize all incumbent providers' network upgrade activities related to installing FTTP facilities and removing copper infrastructure. Telus Corp. remained neutral regarding the allegations directed at Cogeco but firmly opposed TekSavvy's proposal for a wide-ranging examination of incumbents' network decommissioning activities, noting that it would be redundant and inefficient. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca.

Cogeco defends infrastructure upgrade amid TekSavvy dispute

News | February 13, 2024

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Cogeco defends infrastructure upgrade amid TekSavvy dispute

News | February 13, 2024

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