Quebecor asks CRTC to impose new interim disaggregated FTTP rates for Bell equivalent to aggregated rates

Quebecor Inc. submitted an application to the CRTC on behalf of Videotron and VMedia challenging the interim disaggregated access rates for high-speed access (HSA) services offered on BCE Inc.'s fibre-to-the-premises (FTTP) facilities and requested new interim disaggregated access rates that are at least equivalent to the approved interim aggregated rates. “Bell has long taken advantage of the regulatory asymmetry on wholesale HSA services to build a huge FTTP network across Canada, particularly in Quebec and Ontario, without having the obligation to provide access in aggregated mode,” an English translation of their Part 1, posted Monday to the commission website, states. In March, the CRTC expressed its concerns over market distortion and limited choices for competitors, and launched a consultation on mandating aggregated wholesale HSA services. Last month, the CRTC ordered Bell and Telus Corp. to provide aggregated wholesale access to its FTTP networks in Ontario and Quebec within six months. Bell, however, launched legal proceedings aiming to overturn the decision, claiming irreparable harm. “This initiative, by no means surprising, obviously aims to protect Bell's quasi-monopoly in FTTP and to torpedo the Commission's efforts to implement a fair and balanced wholesale HSA regime for the benefit of Canadian consumers,” Quebecor said in its Part 1. The CRTC allowed competitors to keep using the disaggregated model in accordance with the existing rates for the disaggregated services. Quebecor is arguing that a comparison of access rates reveals a significant gap between aggregated and disaggregated rates, with the latter being deemed unjust and unreasonable. “The disaggregated FTTP access rates approved for Bell have not only been interim for more than six years, they are above all excessively high,” Quebecor wrote. Quebecor said it can pay $68.94 for speeds of three megabits per second to 1.5 gigabit per second under the aggregated model. The disaggregated rates are 77 per cent higher, sitting at $121.79. Bell is charging $78.03 for speeds of 1.51 Gbps to 8 Gbps under the aggregated regime and $121.79 under the disaggregated model. Quebecor argues that the difference in rates contradict the policy outlined in the Telecommunications Act, impacting the orderly development of the telecommunications system, affordability of services, and fostering competition. Quebecor emphasized the urgency of the situation, claiming Bell's legal maneuvers can potentially delay the provision of aggregated access and asked for an expedited decision on its Part 1. “The commission itself recognized the urgency of acting with regards to the current rates for aggregated wholesale HSA services which they consider to no longer be just and reasonable, which has the effect of limiting competition. In doing so, when it launched the proceeding… the commission indicated that it was appropriate to order immediately, on an interim basis, a 10 per cent reduction to the capacity-based billing (“CBB”) rate,” Quebecor wrote. “We submit that the situation with the interim access rates for disaggregated wholesale FTTP services is equally concerning and requires the commission to intervene urgently to minimize the risk of prejudice.” — Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Phalen Tynes-MacDonald at pcreed@thewirereport.ca

Quebecor asks CRTC to impose new interim disaggregated FTTP rates for Bell equivalent to aggregated rates

News | December 11, 2023

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Quebecor asks CRTC to impose new interim disaggregated FTTP rates for Bell equivalent to aggregated rates

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