New policy requiring CRTC to improve telecom competition, lower rates comes into force
Global News
The directive, first unveiled last May, rescinds a 2006 policy direction that said the CRTC should rely on market forces in making decisions.
The final version of a new telecom policy directive first unveiled by the federal government in May of last year is now in force.
The government’s new directive to the Canadian Radio-television and Telecommunications Commission (CRTC) means the agency must put in place new rules to improve competition in the telecom industry, Industry Minister Francois-Philippe Champagne said Monday.
“Under the Telecommunications Act, the CRTC is responsible for implementing the policy direction and is required to take certain steps and approach all of its future decisions in a way that is aligned with it,” Champagne said in a statement.
“I trust that the CRTC will act on this important work, and I look forward to seeing the direction being put into action soon.”
The directive rescinds a 2006 policy direction that said the CRTC should rely on market forces in making decisions.
Instead, the federal government is now emphasizing consumer rights, affordability, competition and universal access.
The new directive will require the CRTC to take action to have more timely and improved wholesale internet rates available. Too-high wholesale rates discourage competition, but rates set too low discourage the company’s largest telecom providers from making costly wireless infrastructure upgrades.
The government is also directing the CRTC to improve its hybrid mobile virtual network operator (MVNO) model and says it is prepared to move to a full MVNO model to support competition if necessary.