Telus accuses Bell of blocking introduction of Eastern Canada broadcasting services

Telus Corp. has plans to launch broadcasting services in Eastern Ontario but claims it is being blocked by BCE Inc.’s Bell Media from introducing “new exempt broadcasting distribution undertaking (BDU) systems” in areas including Montreal, Quebec City, Toronto. Telus’ motivation for the launch is, in part, to better compete in the internet service market by offering “attractive service bundles” to people which include TV service, according to an undue preference application dated April 25 and made public by the CRTC this week. In its application, Telus accuses Bell of having “a desire to deny Telus the ability to expand into its serving territories, because Telus is a strong competitor with the ability to bundle BDU and internet services.” Telus cites the CRTC’s August decision ordering the western telecom, plus Saskatchewan Telecommunications Holding Corp. (SaskTel) and Bell, to provide aggregated wholesale access to incumbent fibre-to-the-premises (FTTP) networks across Canada “The CRTC’s new wholesale access framework also provides communications companies with a pathway to offer BDU services, which must be delivered over a managed network, outside of their traditional territories using leased-line transmission paths,” Telus wrote. It is already using the mandated wholesale wireline framework “to offer new retail fibre internet services in Ontario and Quebec,” it said. Telus wants the CRTC to force Bell Media to authorize Telus to distribute its programming services in its leased network service areas, “on the same terms and conditions” set out in an existing affiliation agreement between the parties, while they negotiate a new affiliation agreement. “If Bell Media’s actions in this case were driven by legitimate concerns…they would have made some effort to engage with Telus to resolve any such concerns. Instead, Telus has been trying to address the issues raised by Bell Media…and Bell Media has steadfastly refused to engage constructively to resolve them,” Telus alleged. Launching successful BDU systems requires content people want, which includes content from Bell, Telus argues. “Bell Media’s actions have illegally foreclosed Telus’ access to the content that is necessary to launch new BDU systems in the leased network serving areas,” it wrote. “Bell Media’s programming services, and in particular its sports content, are necessary to attract subscribers and have been described by the Competition Bureau as ‘must have programming.’ In other words, its absence from a BDU’s lineup would cause sufficient subscriber losses to rivals such that all BDUs consider the service necessary to remain competitive,” Telus argued, citing a Competition Bureau submission to the CRTC in 2015. “Should Bell Media be permitted to continue foreclosing access to content in the eastern BDU systems and obstructing Telus’ efforts to offer new competition using the wholesale wireline access framework, this could prevent Telus from launching BDU services in additional serving areas, where Telus would again be relying on leased-line transmission paths,” the company wrote in its application. “This will further increase the number of consumers deprived from the benefits of healthy competition in the markets for television and Internet services.” Telus says it gave Bell Media written notice it intended to launch its eastern BDU systems, after which Bell allegedly denied that Telus was authorized to do so and threatened legal action if Telus began distributing its programming services. That was followed by disagreement from Telus, it states, and later Bell Media saying it would not keep engaging with Telus until “various unrelated issues that have arisen in the context of the renewal discussions have been addressed.” Telus has asked Bell multiple times over several months to solve the issue, it claimed. It argues Bell’s concerns, the reasons for which are redacted in the public copy of the complaint, “are nothing more than a pretext to prevent Telus from launching the Eastern BDU systems.” “Bell Media’s actions are part of a coordinated and multi-pronged attempt by its parent company, BCE, to thwart Telus’ ability to effectively compete in the market for television and internet services in BCE’s incumbent territories in Ontario and Quebec, where most of BCE’s retail customers are located,” Telus alleged, claiming Bell is trying to insulate itself from competition. The Wire Report has reached out to Bell for comment. The company did not respond by publication time. Telus argues that Bell already has agreements with other distributors delivering its programming services using “the same or similar leased-line transmission paths.” “There is no pro-competitive explanation as to why Bell Media would foreclose Telus’ access to content in the leased network serving areas,” Telus alleged, adding earlier in the application that it is “prepared to pay Bell Media for every subscriber that watches Bell Media content.” “As Telus expands into new territories through the eastern BDU systems, it will bring new subscribers to the broadcasting ecosystem, which will be accretive for both Bell Media and Telus. More viewers would result in more revenue for Bell Media,” it said. “In addition, given Telus’ relatively smaller size in the English television market within the eastern BDU systems, in comparison to the existing large incumbents’ scale, Bell Media will likely receive a higher rate for each subscriber that switches to Telus’ television service.” Telus claims the “obvious explanation” is that Bell Media is trying to insulate its parent company from increased competition it would feel with Telus’ entry in the space. “This new competition will impact BCE in at least two ways. First, its affiliated BDU systems may lose subscribers and revenues as Telus’ eastern BDU systems provide new competition and offer consumers in the leased network serving areas greater choice in television service providers. Second, BCE could also lose subscribers and revenues associated with its affiliated Internet and other telecommunications services, as the eastern BDU systems will allow Telus to offer competitive television and Internet service bundles to consumers in the leased network serving areas.” hdaley@thewirereport.ca

Telus accuses Bell of blocking introduction of Eastern Canada broadcasting services

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By Hannah Daley
| May 22, 2025

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Telus accuses Bell of blocking introduction of Eastern Canada broadcasting services

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