TekSavvy petitioned the Liberal government, asking it to overturn the CRTC’s decision. On the 27th, the commission rendered a decision on wholesale tariffs, reversing its decision of 2019. As a reminder, wholesale tariffs are mandatory amounts that large telecommunications companies can charge small ISPs for access to the network. .
In August 2019, the CRTC set final wholesale rates after the implementation of interim rates in 2016. Final rates were significantly lower than interim rates, which the CRTC found to be “severely inflated.” In addition, the CRTC set the final rates retroactively, which means that incumbents would have to reimburse the difference for the interim rates.
The incumbents quickly challenged the decision both in court and through other channels. The Federal Court temporarily stayed the 2019 ruling before dismissing the incumbent appeals. However, the CRTC granted the licensees’ suspension request. The May 27 decision was the culmination of that suspension, with the commission concluding that it had made errors in the original decision. He also set the provisional rates as final.
The CRTC’s about-face has been criticized by small ISPs and advocates. Now TekSavvy and VMedia have called for the impeachment or resignation of CRTC Chairman Scott.
“The decision raises serious doubts about the leadership and competence of the CRTC, as well as the integrity of its process,” said Alexei Tchernobrivets, CEO of VMedia, in an emailed statement.
« [The decision] sell Canadians for the benefit of dominant players. CRTC Chairman Ian Scott is expected to resign and Parliament should launch an immediate inquiry into the inconsistent result and whether political and corporate influence had an impact on that decision.
TekSavvy’s petition calls on the federal cabinet to take several actions
TekSavvy was more direct in his petition to the Liberal government. In the petition, TekSavvy called on the federal cabinet to fulfill the Prime Minister’s mandate to “support consumer choice,” detailing several steps the cabinet should take. The first step: to dismiss President Scott or demand that Scott recuse himself from decisions involving wholesale competitors and competitors with facilities.
In a separate blog post, TekSavvy accused Scott of bias towards facilities-based competition. Facilities-based competition refers to competition based on the provision of services, such as network or infrastructure, rather than on the service itself (service-based competition). Europe, for example, operates on the basis of a service-based philosophy, requiring large incumbent providers to lease network access to competitors, which helps reduce overall costs for consumers.
Additionally, the TekSavyy petition calls on cabinet to reinstate the 2019 CRTC order, noting that it has already been reviewed and upheld by the Federal Court of Appeal and that the Supreme Court of Canada has also chosen not to change. the 2019 ordinance.
TekSavvy asked the firm to require incumbents to make all retroactive payments owed based on the 2019 order and to reaffirm “Phase II cost” as the appropriate method for determining wholesale rates. Finally, the FSI asked the cabinet to order the Commissioner of Competition to conclude his investigation into the anticompetitive activities of the incumbents.
Source: TekSavvy, (2)