CRTC Announces Policy to Increase Cellphone Competition in Canada

CRTC Announces Policy to Increase Cellphone Competition in Canada
Rogers and Shaw applications are pictured on a cellphone in Ottawa on May 9, 2022. Sean Kilpatrick/The Canadian Press
Marnie Cathcart
Updated:

The Canadian Radio-television and Telecommunications Commission (CRTC) has announced a policy that aims to increase cellphone competition for Canadian consumers.

In a May 9 news release, the CRTV said it has “taken a major step forward” in advancing a policy to force large cellphone companies to share their networks with competitors. The policy was first set in 2021, according to the government, and allowed regional cellphone providers to compete as mobile virtual network operators (MVNOs) across the country.

“With access to larger networks, regional competitors will be able to offer cellphone services in parts of Canada that they do not currently serve,” said the CRTC.

The commission said it has now set final rules that give companies 90 days to negotiate MVNO access agreements.

“The CRTC expects that regional competitors will start selling plans in new parts of Canada shortly after these agreements are in place,” said the news release.

“The CRTC will ensure that deals are reached quickly so that Canadians have more choice of cellphone services,” said the commission.

A government directive to the CRTC mandated the commission ensure competition in the telecom industry, Industry Minister Francois-Philippe Champagne said in February.

“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.

A previous directive in 2006 instructed the CRTC to rely on the market in making decisions. The new instructions from the government emphasize consumer rights, affordability, competition, and universal access.

One way this might benefit consumers is to improve internet wholesale rates. Wireless providers can buy cellphone network service from larger carriers at wholesale prices, then sell directly to consumers with more affordable pricing.

The federal government also expects the CRTC to protect consumers in the event of a service outage, after a July 2022 Rogers Communications network outage caused service issues for more than 12 million Canadians.

The Canadian Press contributed to this report.