Smaller providers worry about effects of CRTC’s proposed outage, disruption regulations

Smaller telecoms worry about how new CRTC regulations standardizing how service providers must respond to outages and disruptions will affect wholesale providers. Earlier this year, the CRTC released its preliminary view that consumer protections are necessary in the event of a service outage or disruption, and that new regulations could include how, and when, service providers should be required to report outages and disruptions to consumers, and whether refunds for loss of services should be mandatory. In an intervention filed with the CRTC last week, TekSavvy Solutions Inc. raised concerns about what the proposed regulations would mean for wholesale providers, arguing that they face an information deficit when it comes to outages caused by the underlying third-party carrier. TekSavvy explains that this can create difficulty with respect to “timely and comprehensive customer communication.” Meanwhile, Telus Corp. argued that if new protections are implemented, wholesale providers should be held accountable for their own outages. In a joint intervention, the Independent Telecommunications Providers Association (ITPA) and the Canadian Communications System Alliance (CCSA) said that if the CRTC implements new protections, it should abstain from imposing them on smaller providers. The groups argue that there is no one-size-fits-all solution, and say unnecessary regulatory requirements could make it more difficult for smaller providers to compete in their markets. As part of its preliminary view, the CRTC suggested that new regulations can help build on existing consumer protections and “help better respond to Canadians’ needs when a service outage happens.” Smaller providers have simpler networks and smaller reach, meaning outages affect fewer consumers and can be resolved more quickly, according to the ITPA and CCSA. They further argue that by regulating only larger providers, the CRTC will still achieve its goals and solve about 90 per cent of issues, as smaller providers will be pushed to maintain reliable service in order to keep up with market standards. Saskatchewan Telecommunications Holding Corp. (SaskTel), on the other hand, said that, while it is against the proposal, if new regulations are implemented, all providers should be subjected to the same regulations to ensure all consumers get the same protections. BCE Inc.’s Bell Canada, Rogers Communications Inc., Cogeco Communications Inc., and the Canadian Telecommunications Association (CTA), also argued against the regulations, saying the CRTC has not identified a market failure that the regulations would be attempting to solve. In its intervention, Rogers argued that the commission “has not offered evidence demonstrating that consumers are not already well-served by existing protections and by the competitive dynamics that have brought world-class networks and services to Canadians throughout the country.” In its consultation, the CRTC referenced similar protections that were implemented in Canada’s far north. In a decision released in January, the commission announced new regulations requiring Bell’s Northwestel Inc. to provide automatic bill credits to consumers when internet services are unavailable for 24 hours or more, and to file a yearly report on internet outages in the Far North. Telus, Bell, Rogers, Cogeco, and the CTA, however, say that while these regulations are appropriate in the Far North, where competition is lacking, the competitive nature of the market across the rest of Canada is enough to keep consumers protected. Bell said providers are already “well-incentivized” to deliver reliable service due to market forces and risks of reputational damage. As such, it argued that new regulations would not impact providers’ motivations or their ability to further limit disruptions. “No amount of notifications, refunds, or newly-established resiliency mandates will result in Canadians no longer experiencing or reporting outages,” it said in its Nov. 13 intervention. SaskTel, TekSavvy, the ITPA, and the CCSA, echoed similar statements on the sufficiency of market competition. Arguing that there is not a clear issue to be addressed, Cogeco called the decision “premature,” and said the CRTC is “effectively putting the solution cart ahead of the regulatory horse.” Telus, Bell, Rogers, and Cogeco also said new regulations would ultimately raise costs, as any additional expenses incurred would ultimately be passed on to consumers. The Commission for Complaints for Telecom-television Services (CCTS) also weighed in during the intervention period, noting that there are currently no consumer protections in place when it comes to outages and disruptions. It said both consumers and providers could benefit from clear regulations to reduce customer frustration and limit disputes. It also advocated for clearer definitions of outages and disruptions so consumers could clearly understand when they are entitled to compensation. In response to the CRTC’s question about whether exceptions should be considered, Telus, SaskTel, Bell, Rogers, the CTA, the CCSA, and ITPA all agreed that the regulations should not apply to situations outside the providers’ control. The CCTS noted, however, that when handling disputes, it generally does not take into account whether or not the issue was outside of the provider’s control. In a recent related decision, the CRTC released new regulations changing how telecoms will have to notify the commission about outages and disruptions. Several providers submitted applications requesting the CRTC review and vary the decision. mcollins@thewirereport.ca

Smaller providers worry about effects of CRTC’s proposed outage, disruption regulations

Regulatory |
By Maria Collins
|November 20, 2025

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Smaller providers worry about effects of CRTC’s proposed outage, disruption regulations

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