'Dangerous decision': Telecom CEO blasts Joly's decision to uphold CRTC's wholesale internet rules
'By immediately increasing competition and consumer choice, the CRTC's decision aims to reduce the cost of high-speed Internet for Canadians and will contribute toward our broader mandate to bring down costs across the board,' she wrote.
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The decision was made the day before Bell Canada's quarterly results were announced. Bell's stock was down that morning, and observers noted a correlation with the minister's decision.
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In an analyst call that morning, Bell's CEO Mirko Bibic said he was 'disappointed' and urged the government and the CRTC 'to ensure that network builders are fully compensated for significant build costs and investment risks they take in building.'
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It also came a few weeks after Cogeco announced a new mobile service with an introductory one-year free offer.
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'With this decision, the minister is essentially saying it's okay if the Big Three get even bigger. It's okay if the regional, local players suffer, and it's okay if there's a re-monopolization of telecoms in Canada,' Perron said.
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'We don't think it's okay. Consumers won't think it's okay, and we'll fight to make sure it doesn't happen.'
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Cogeco and Eastlink, which announced last week it was 'suspending further planned upgrades to many smaller communities across Canada,' filed an appeal in July asking the Federal Court of Appeal to quash the decision.
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But in Ottawa, overriding a decision from the CRTC was seen as a 'bold move' and that could 'rattle the cage' not even six months after an election and a new prime minister in charge. Sources said the minister had a duty to ensure the sustainability of institutions and protect the national interest.
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Champagne, who has since become minister of finance, did not comment for this story. His office confirmed that he attended the cabinet meeting in which the decision was confirmed and that 'Canada's new government has a strong mandate to bring costs down and to build one, strong, Canadian economy.'
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'We would have liked to see a lot more courage, and I'm happy to be quoted on that. It seems to me like deferring to the CRTC and maintaining the status quo was the easy way, but not the right way. Sometimes the best decision is the hard decision in life, and we are saddened that the hard decision was not made,' said Perron.
In a statement last week, Rogers Communications said 'the Carney government has declared its priority is to build a strong Canada and this decision does the exact opposite.'
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A recent PwC study shows that the telecommunication sector directly contributed $87.3 billion in GDP to Canada's economy and supported over 661,000 jobs in 2024.
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By 2035, the Canadian telecom industry could contribute another $112 billion to Canada's overall GDP, according to the study.
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