Market response to wholesale network access has been ‘encouraging’: CRTC chair

OTTAWA—Canada’s telecommunications market has had an “encouraging” response to the CRTC’s decision allowing internet companies to access their competitors’ networks, according to commission head Vicky Eatrides. During a speech at the International Institute of Communications’s (IIC) annual conference, Eatrides provided a status update on the commission’s wholesale internet decision, which she said was designed to “encourage network improvements while allowing competition to bring Canadians more choice.” The policy framework, introduced in 2024, allows smaller service providers to offer plans using infrastructure built by incumbent carriers, like BCE Inc., Rogers Communications Inc., and Telus Corp. — and Eatrides said the early returns are promising. “Dozens of competitors are using the framework to introduce services and attract customers,” she said at the National Arts Centre on Monday. “Since its introduction, regional providers have expanded into additional communities, giving more Canadians access to competing offers.” “The aim is to help regional providers grow and compete while encouraging them to build and operate their own networks we want competition to do more than create additional retail offers.” Eatrides said the CRTC will continue to assess the results, which includes determining whether customers are gaining meaningful options, how prices are fluctuating, as well as whether service offers are improving. The regulator has implemented a similar policy for mobile services, known as the mobile virtual network operator (MVNO) framework. Both policies feature built-in protections for companies that invest in new networks. For instance, the wholesale regime gives exclusive access to whichever company built the infrastructure, while the MVNO system is designed to be a temporary measure that allows smaller companies to enter the market. Currently, the MVNO policy is set to sunset in 2030. Earlier this year, the CRTC also finalized rates for resellers using another carrier’s infrastructure, and Eatrides emphasized how the commission is seeking to strike a balance that promotes competition without deterring investment in the sector. “Our decision followed a detailed examination of the evidence, including actual costs, like those incurred by network owners to build infrastructure,” said Eatrides. “The rates matter , if they’re too high, they can constrain competition and they can limit consumer choice. If they're too low, they can weaken incentives to develop and maintain networks.” “Our role is to create the conditions in which network owners can continue to improve the infrastructure, and competitors have a genuine opportunity to bring businesses to Canadians.” The CRTC’s most recent telecoms market report suggests fixed internet prices, regardless of speed, are lower than five-years ago, though internet companies have expressed concerns that the wholesale decision has disincentivized capital expenditures in new network buildouts. For example, Rogers has outlined plans to cut capital investments by 30 per cent in 2026, which CEO Tony Staffieri attributed to “antiquated” regulations. Meanwhile, Bell and Telus are following similar capex trajectories. Industry observers have also pointed out how Canada’s Big 3 telcos have prioritized other industries in recent years, as Rogers finalized its multi-billion dollar purchase of Maple Leafs Sports and Entertainment earlier this year, while Bell has ramped up its spending in the artificial intelligence sector. During a panel discussion on Monday, experts disagreed on whether the CRTC’s efforts to promote competition through wholesale access have been worth the declining investment trends. “The history of the wholesale framework was to help some smaller providers get a foothold in the market with the ladder investment theory that, eventually once they accumulate consumers, they can move up… to become facilities-based providers,” said Eric Smith, senior vice-president of the Canadian Telecommunications Association. “History in many countries has shown it doesn’t work as well in practice as theory…, and it was also never meant to allow the three largest ISPs (internet service providers) in the country to use the networks of their competitors. “You can look at some targeted policy initiatives, but to take the three largest investors historically in network building and to implement a policy that encourages them not to build and to become resellers, it's had a dramatic impact.” In response, David Fewer, a lawyer at the Ottawa-based firm nNovation LLP said the market is “still seeing investment,” adding there are likely other factors beyond regulatory hurdles that could be limiting capital investment. “I’ll take at their word that the regulatory environment is one of those factors, but it’s far from the only factor,” said Fewer. “I think it was a big mistake from a policy perspective to allow our infrastructure developers to become content developers… the people who make the pipes should be focused on doing that job really well. Right now, they’re not. Right now, they’re buying sports teams.” Fewer continued to say that entertainment- and sports-related enterprises generally carry “a lot of debt,” meaning it’s “not realistic to say those other ventures have no impact on our communications infrastructure.” The two-day IIC conference is set to wrap up on Tuesday. dlegree@thewirereport.ca

Market response to wholesale network access has been ‘encouraging’: CRTC chair

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By Davis Legree
|October 19, 2026

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