Telus wants Bell lawsuit over third-party internet access dismissed, launches counterclaim

Telus Corp. has filed its statement of defence against a lawsuit brought by BCE Inc. over third-party internet access (TPIA) via fibre to the premises (FTTP). In it, the western incumbent denies Bell’s charges and is seeking $1 million in damages in a counterclaim over sales practices. The matter stems from the CRTC’s ruling that incumbent internet service providers (ISPs) may buy wholesale services from other telecoms in the sellers’ respective incumbent footprints when the non-incumbents do not have facilities in the region. Telus is the only major company that supports the deal; Bell and Rogers Communications Inc. are among those opposed and are calling on cabinet to overturn the decision. “Bell’s action advances false, baseless allegations against Telus as part of Bell’s wider public strategy to undermine and overturn the CRTC’s recent decisions that increase competition, affordability, and consumer choice for high-speed internet in Canada,” states the 20-page Telus statement filed July 25. “Bell views the CRTC’s market innovations as a threat to its position as a dominant internet service provider in Ontario and Quebec,” it alleges. By being permitted to sell broadband in Bell territory, Telus has offered more choice at a better price, it maintains. Bell is not totally without profit in these deals, the western telecom adds; it pays Bell $73 per subscriber for wholesale fibre access. Bell has asked cabinet to change the ruling and sought a review and vary decision from the regulator itself. Telus points out that the commission has confirmed its initial ruling six times. “Bell’s attacks on the CRTC’s mandate do not stem from a concern for innovation or the good of customers and small businesses, but are instead designed to maintain the over 80 per cent market share held by Bell and other ISPs in Ontario and Quebec and prevent Telus from growing its 3.1 per cent market share in those provinces," Telus alleges. Telus files counterclaim over sales practices Telus and Bell have gotten into a war of words over how their representatives deal with customers who are thinking of switching services. Bell technicians must handle the move from its lines to Telus service. Telus accuses them of using misleading sales tactics to get the potential clients to cancel their switch. Bell previously charged Telus representatives with selling illegal pirated television services. The Vancouver company denies it knowingly did so. “At no point did Telus authorize offers or sales for these third-party TV services,” the company says. “The idea that Telus would resort to, or would need to resort to, illegal conduct to entice Bell’s customers to switch providers is outlandish and has no basis in fact.” It concedes some third-party representatives did deploy the underhanded methods in a handful of cases. They have been disciplined through suspensions and firings, the telecom asserts. “Telus focuses on providing customers with competitive, reliable, and affordable services. Telus’s business practices have at all times been consistent with the objectives of the Telecommunications Act and the CRTC mandate,” the firm avers. “In contrast, Bell has embarked on a campaign to undermine the objectives of the Telecommunications Act and intentionally frustrate the CRTC mandate by actively discouraging competition through the conduct outlined in Telus’s counterclaim,” Telus alleges. The counterclaim alleges anti-competitive behaviour by Bell including predatory pricing, misleading sales tactics, and frustrating Telus’ ability to connect with consumers through actions and omissions by Bell technicians. The company is seeking punitive damages of $1 million from the eastern incumbent. Telus denounces the Bell suit as “frivolous, vexatious, and an abuse of process.” It asks that the case be dismissed with costs. A Bell spokesperson told The Wire Report by email on Monday, July 28 that it is currently studying the Telus filings. Bell is seeking $25 million in damages and a further $10 million in punitive damages in its suit. A note from Adam Shine at National Bank of Canada published July 28 highlighted that a petition organized by Telus to promote the CRTC decision currently has over 400,000 signatures. The company wants a million people to endorse third-party internet access in central Canada. “We're confident Telus's petition can get to one million or more signatures, but also that choice and affordability exists in Ontario and Quebec where competitive intensity has always been the highest in Canada,” Shine wrote. “The premise of TPIA was always about fostering competition from smaller carriers while also promoting investments by incumbents. While the regulator has struggled with the TPIA file for a decade, it doesn't look like its recent decisions will accomplish both of its objectives.” The move by the CRTC to allow incumbents to access wholesale fibre in their non-dominant regions has inspired Telus to increase the amount it spends on internet deployment, the company’s chief technology officer says. Nazim Benhadid spoke with The Wire Report on Friday July 25, the same day the statement of defence was filed. Benhadid attributed a recently announced $2 billion outlay in Ontario and Quebec entirely to the commission’s decision to permit fibre to the premises to be made available to all telecoms. Telus had previously announced $70 billion in rollout expenditures nationally. The $2 billion is in addition to the $70 billion, not a part of it. The company says in the last quarter-century it has spent more than $276 billion in internet infrastructure. “We want to promote competition, not the competitors,” the CTO explained in an interview. The deployment will run for the next five years, Telus stated. Benhadid would not say where in Ontario and Quebec it will roll out, citing marketing confidentiality. The fibre network will replace the existing copper networks and will allow the western telecom to market its services in competition with Bell and Rogers. ppark@thewirereport.ca

Telus wants Bell lawsuit over third-party internet access dismissed, launches counterclaim

Court |
By Paul Park
| July 28, 2025

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Telus wants Bell lawsuit over third-party internet access dismissed, launches counterclaim

Court | By Paul Park | July 28, 2025

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

FCC approves Bell, Ziply merger

Bell accuses Telus of misleading CRTC regarding Manitoba outage

Telus sales people promoting illegal TV pirating service to entice customers, Bell alleges

Telus accuses Bell, Rogers of hindering television rollout at CRTC hearing

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Court |
By Paul Park
| July 28, 2025