Infrastructure investments could see cuts due to wholesale rates: Bibic, French

BCE Inc. and Telus Corp. reiterated their concerns around the CRTC’s ongoing review of the wholesale high-speed access framework, warning regulators of the delicate balance between access rates and incentivizing investment. During the CIBC Eastern Institutional Investor Conference in Montreal this morning, while answering questions from CIBC analyst Stephanie Price, Bell CEO Mirko Bibic urged the commission to ensure that third party internet access (TPIA) rates - the rates competitor ISPs pay to incumbents for access to their networks - do not create disincentives for companies to invest in infrastructure. “Isn’t the objective more coverage, better prices, better quality?” said Bibic, explaining that the goal of these proceedings should not be to satisfy all ISPs. “If you encourage companies like Bell to build more fibre, you get the right outcomes,” he continued, “in areas that have nothing, you get broadband. In areas that have cable companies… you get competition. With competition, you get lower prices.” Bibic alluded to the statements Bell has made throughout the commission’s proceeding, which argues against mandating wholesale aggregated access to fibre-to-the-premises (FTTP) facilities, so as to avoid making it too expensive for incumbents to maintain without pulling their investments into building more infrastructure. Telus CFO Doug French gave similar sentiment during his time on the stage. “If the rates become an issue, we'll change our investment profile,” he said, noting that those investments are not just made up of capital, but also include people, and that jobs could be on the line depending on what happens with TPIA rates. “These are infrastructure assets that have a 60-year life, so you can't expect to get a return in two or three or four years. You need a window of eight to 10 plus to break even, let alone start to make a margin,” explained French, describing Telus’ growing fibre network. “So, if you have pricing that's too early in the TPIA rates that don't allow you to at least break even, then you have to change your investment thesis in some capacity.” – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca.

Infrastructure investments could see cuts due to wholesale rates: Bibic, French

News | September 28, 2023

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Infrastructure investments could see cuts due to wholesale rates: Bibic, French

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