
Cogeco, Eastlink seek to appeal CRTC decision on wholesale fibre rules
In a legal challenge filed at the Federal Court of Appeal on Friday, Cogeco Inc. and Halifax-based Eastlink said the regulator's June decision should be quashed.
They alleged that the CRTC rendered an 'effectively arbitrary decision' that ignored key arguments and evidence, while also erring in law and jurisdiction.
'Based on the incorrect conclusion that the Big Three are 'new' service providers, the CRTC allowed the Big Three to co-opt a regulatory framework … to instead compete against each other and against these truly new, regional, and smaller providers,' the court filing states.
Last month, the CRTC ruled that Rogers Communications Inc., BCE Inc. and Telus Corp. can provide internet service to customers using fibre networks built by one another — as long as they are doing so outside their core serving regions.
Telus has defended that policy as a way to boost competition in regions where it doesn't have its own network infrastructure, which then improves affordability for customers. Bell and Rogers oppose it, saying the rules discourage the major providers from investing in their own infrastructure.
Many regional and independent carriers have raised concerns that it could make it more difficult for them to compete against larger players. They point out the Big Three are able to offer bundled internet, cellphone and TV packages for a discount, while some standalone internet providers cannot.
'The CRTC is stubbornly maintaining a broken … resale regime that has completely failed to meet its original objective to help new entrants get into the market,' Cogeco president and CEO Frédéric Perron said earlier this week on his company's latest earnings call.
'The CRTC is misusing its power and is favouring telecom giants at the expense of regional players such as Cogeco. It's like forcing regional airlines to let national airlines use their planes. It just doesn't make any sense.'
The CRTC said its rules effectively balance the need for both competition and investment, while only having a 'modest' near-term effect on the market share of regional carriers.
It said it plans to continue evaluating the effect on the industry, noting there have been 'early indicators of improved competitive intensity' but that the extent to which the new rules 'will ultimately be successful is still unknown.'
But Cogeco and Eastlink say the CRTC erred in law 'in a way that irremediably tainted the rest of its analysis.'
It said the regulator's decision 'treats the country's largest and most powerful telecommunications service providers as 'new' and reduces barriers to competition for the largest players in the telecommunications market, while increasing these barriers — with potentially fatal effect — for everyone else.'
The carriers argued that the commission should 'not have concluded that the Big Three are 'new' service providers, given that they are the largest providers of telecommunications services across Canada.'
Cogeco and Eastlink also characterized the CRTC's reasoning for its decision as 'so insufficient that the CRTC breached procedural fairness and effectively rendered an arbitrary decision by wholly failing to acknowledge or address the long-term effects of bundling … or the incoherence of the policy with the broader regulatory regime.'
The framework initially kicked in May 2024 on a limited basis, when the regulator began requiring Bell and Telus to give competitors — including both big and small companies — access to their fibre-to-the-home networks, in exchange for a fee.
Those rules initially applied only in Ontario and Quebec, as the CRTC cited a significant competitive decline in those provinces. It noted independent internet providers had been serving 47 per cent fewer customers than two years earlier as many were bought out by larger internet providers.
The CRTC announced in August 2024 the rules would be extended to networks owned by telephone companies countrywide.
Monday Mornings
The latest local business news and a lookahead to the coming week.
But the federal government then asked the commission to reconsider whether the Big Three providers should be able to act as wholesalers under the rules, citing concern about the viability of smaller internet providers to act as alternatives.
The CRTC opened a consultation into the matter and issued a temporary decision this past February that upheld the rules, followed by its final determination in June.
The federal cabinet has until Aug. 13 to decide whether to overrule that decision.
This report by The Canadian Press was first published July 18, 2025.
Companies in this story: (TSX:CGO, TSX:BCE, TSX:T, TSX:RCI.B)

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Canada News.Net
4 hours ago
- Canada News.Net
Amazon buys startup behind wristband that transcribes conversations
SAN FRANCISCO, California: Amazon is making a fresh bet on artificial intelligence wearables by acquiring Bee, a San Francisco-based startup known for its AI-powered bracelet that records, transcribes, and summarizes conversations. The device, priced at US$50, can distill what it hears into to-do lists, summaries, and reminders. Its always-on microphone can be muted manually, offering users some control over privacy — a point Amazon emphasized in confirming the deal this week. While the acquisition has not yet closed, the e-commerce and cloud services giant said it plans to collaborate with Bee to enhance user transparency and control. Bee co-founder and CEO Maria de Lourdes Zollo revealed the deal in a LinkedIn post, writing: "We imagined a world where AI is truly personal, where your life is understood and enhanced by technology that learns with you." She did not immediately respond to requests for comment. The startup was founded in 2022 and has been part of a growing wave of companies experimenting with on-the-go AI assistants. Amazon declined to disclose financial terms of the acquisition. This move follows Amazon's earlier, less successful attempt at entering the wearables market with its Halo wristband, a health tracker that was discontinued in 2023. It also produces Echo Frames, smart glasses embedded with its voice assistant Alexa. AI wearables have become an increasingly competitive space. Earlier this year, OpenAI acquired io, a hardware startup founded by former Apple designer Jony Ive, in a deal reportedly valued at $6.5 billion. Other startups in the field have delivered mixed results, with many still navigating technical, privacy, and market adoption hurdles. In her announcement, Zollo thanked Amazon Devices chief Panos Panay, hinting that Bee will be integrated into his team after the deal's completion. Panay joined Amazon in 2023 and has been leading a revamp of the company's hardware division to focus more aggressively on AI.


The Market Online
5 hours ago
- The Market Online
Market Open: TSX Futures Slip as Traders Brace for U.S. Tariff Call
Futures tied to Toronto's main index slipped on Friday as investors watch closely, hoping the United States will hold off on imposing steep import levies. Market Numbers (Futures) TSX : Down ( 0.20%) 27,317.51TSXV: Down (0.19%%) 802.93DOW: Up (0.08%) 44,934.00NASDAQ: Down (0.05%) 23,366.25 FTSE: Down (0.36%) 9,105.15 In the Headlines: Three contractors working for Hy‑Tech Drilling were successfully rescued late Thursday after being trapped for more than 60 hours underground at Newmont Corp.'s Red Chris gold and copper mine in northern British Columbia. The Denver‑based operator said the rescue operation involved drones to assess subsurface conditions and a remote‑controlled scoop to clear a rockfall estimated at 20–30 meters long and nearly eight meters high. Once access was restored, emergency teams reached the MineARC refuge chamber where the workers had consistent access to food, water, and air, and brought them to safety. Newmont described the operation as 'carefully planned and meticulously executed' and noted that all three men, Kevin Coumbs, Darien Maduke, and Jesse Chubaty, were in good health and spirits. The mine's production remains suspended pending a thorough review and independent investigation into the incident. Currencies Update: (Futures) The Canadian dollar sinks over 0.30% to $0.7287 U.S., with the euro also edging down 0.05% to $0.6233, while Bitcoin takes a beating, dropping more than $3,310.66 or 2.04% to C$158,797.10 in a sharp crypto slide. Commodities: (Futures) Natural Gas: Up (1.78%), 3.14WTI: Up (0.60%), 66.43Gold: Down (0.81%), 3,340.92 Copper: Up (0.28%) 6.08 To stay up-to-date on all of your market news head to Join the discussion: Find out what everybody's saying check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here


Toronto Star
6 hours ago
- Toronto Star
HR exec caught on Coldplay cam resigns after embrace with CEO went viral
Andy Byron, the chief executive of New York-based tech company Astronomer, has resigned from his role after he was spotted embracing an employee at a Coldplay concert earlier this month. calebu2/Youtube flag wire: false flag sponsored: false article_type: : sWebsitePrimaryPublication : publications/toronto_star bHasMigratedAvatar : false :