The Canadian Radio-television and Communications (CRTC) has cleared the path for B.C.-headquartered telecom Telus Corp. (TSX:T) to expand into Eastern Canada with fibre optic service.
As BIV reported last week, the CRTC had come under pressure from Eastern Canadian telecoms, including Bell Canada (TSX:BCE), to restrict Telus from using new rules around renting fibre-to-the premises (FTTP) infrastructure from competitors to provide retail high-speed internet services.
The new rules essentially compel Canada’s big three carriers – Bell Canada, Rogers Communications (TSX:RCI) and Telus – to allow smaller, regional players to use their fibre optic networks (for a fee) to provide various high-speed internet services.
The idea behind the new rules is to facilitate more competition and offer consumers more choice by compelling the big carriers to rent out fibre optics networks to smaller and regional players that do not own their own fibre optics infrastructure.
The changes mean that outside internet service providers can come into B.C. and Alberta, and use Telus’ fibre optics network. But it also means Telus can expand into the large markets of Ontario and Quebec by using Bell’s fibre optics networks – something Eastern Canadian telecoms, notably Bell, objected to.
Under pressure from Bell, the federal government got involved, issuing an Order in Council asking the CRTC to reconsider an interim decision it had made in 2023.
But on Monday, the CRTC made a final ruling confirming the new rules, which works in Telus’ favour.
“Telus acknowledges the Canadian Radio-television and Telecommunications Commission’s decision to uphold its ruling, allowing Telus access to fibre-to-the-premises infrastructure in Ontario and Quebec,” Telus spokesman Richard Gilhooley said in a statement.
“This decision marks a significant step toward fostering greater competition, affordability and innovation for millions of Canadians.”
