Bell and Rogers accuse Quebecor of abusing procedure in disaggregated FTTP rates application

Quebecor Inc.’s request for the CRTC to set new interim disaggregated high-speed access (HSA) rates equal to the interim aggregated rates is out of line, according to BCE Inc. and Rogers Communications Inc. In their response to Quebecor’s Part 1 application, filed in December, Bell and Rogers accused the telecom of abusing procedure by seeking relief for an issue already being looked at in another proceeding. Competitor ISPs TekSavvy Solutions Inc. and Execulink Telecom Inc. filed replies in support of the application, as well as the Public Interest Advocacy Centre (PIAC), citing the impacts of unjust and unreasonable pricing on competition. Bell and Rogers pointed to the CRTC’s ongoing review of the wholesale HSA framework and fibre-to-the-premises (FTTP) facilities, a public hearing for which is scheduled on Feb. 12, saying that Quebecor should have made their proposal for reduced rates in that proceeding instead. “Parties should not be permitted to unilaterally supplement their position on live issues in ongoing proceedings by initiating a duplicative Part 1 process,” said Rogers, arguing that it undermines “the efficacy and fairness” of proceedings, is a waste of resources, and “not in the public interest.” Bell and Rogers noted that Quebecor’s proposal to lower disaggregated HSA rates was not made in its submissions during the ongoing review, instead it argued disaggregated HSA services should be eliminated. “If Quebecor Media favored price reductions for existing disaggregated HSA services, it was up to it to propose them within the framework of , which it did not do,” said Bell, according to a translation. “It is not credible that a service that Quebecor Media despised barely six months ago has suddenly become the keystone of a competitive wholesale regime or become essential for the commercial aims of Quebecor Media.” Beyond procedural issues, Bell argued that applying the interim aggregated HSA rates to disaggregated services is inappropriate. Not only because they are temporary, the telecom said, but because the process that created them was expedited and likely subject to revision. It also argued that the cost study Bell submitted for its aggregated rates does not apply to disaggregated ones, and “it is not appropriate for the commission to ‘export’ a cost study from one department to another.” TekSavvy, however, argued otherwise, saying that it is appropriate because “disaggregated rates should by definition cost less than aggregated rates.” “There is major overlap in incumbents’ costs of providing aggregated and disaggregated services,” said the competitor. It argued that because disaggregated services use the same facilities, minus the carrier’s transport services, their access rates should “at most” cost the same as those of the aggregated model. Even Bell has confirmed this, said TekSavvy, citing previous reports from Bell regarding its fibre-to-the-node (FTTN) services. According to TekSavvy, Bell proposed the access rate for aggregated and disaggregated FTTN services be equal because the access rate component is identical. It even filed one cost study to apply to both services, TekSavvy added. “The same concept holds true for Bell’s disaggregated and aggregated FTTP services,” argued TekSavvy, “the same access facilities are used for both, and there is no rational reason for disaggregated access rates to exceed those of aggregated.” “It is difficult to envision a rationale in which these disaggregated rates could qualify as ‘just and reasonable,’” especially when Bell has also admitted the current disaggregated FTTP rates do not reflect their own filed costs, said TekSavvy. Now that the CRTC has set aggregated access rates lower than disaggregated ones, TekSavvy and other competitors are effectively being punished for their infrastructure investments, said the telecom. “By pursuing the disaggregated interconnection regime touted by the Commission as the way forward to incentivize investment in facilities, TekSavvy will now have to pay higher rates for the same (and lesser) services,” it said. Execulink and PIAC gave similar sentiment, with Execulink noting that Bell’s application to the Federal Court of Appeal “will ensure that its aggregated FTTP service will not be available for more than six months,” giving competitors no choice but to stick with its pricey disaggregated service. Disproportionate access rates stifle competition, argued PIAC, accusing incumbents like Bell of leveraging disproportionate access rates to keep competitors on legacy facilities while building out advanced FTTP services for themselves. It also called for a “proper” transition plan between aggregated, disaggregated, and copper-completed FTTN access, “to ensure not only the survival, but the thriving of all competitors in the market.” PIAC said the CRTC should expect more complaints to come in as it continues to update the telecom system. It pointed to TekSavvy’s recent complaint against Cogeco Inc. as an example of competitors being shut out of the market, as carriers pivot from one access regime to another. “It is clear the current regulatory framework for fibre-access is not functioning when viewed holistically from a consumer point-of-view,” said PIAC. “Mandating access to aggregated wholesale HSA services through FTTP can increase competition in the market. However, rates for disaggregated wholesale HSA services must also be just and reasonable to protect wholesale users, who will in turn offer competitive retail services.” – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

Bell and Rogers accuse Quebecor of abusing procedure in disaggregated FTTP rates application

News | January 31, 2024

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Bell and Rogers accuse Quebecor of abusing procedure in disaggregated FTTP rates application

News | January 31, 2024

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