(OTTAWA) The federal telecom regulator will keep the method it uses to set the wholesale rates that large telcos can charge their smaller competitors to access their networks, with a few changes.
According to the Canadian Radio-television and Telecommunications Commission (CRTC), a review of its process for setting wholesale rates found that the best method of promoting competition was the current approach, in which it sets rates for wholesalers like TekSavvy based on service and infrastructure costs for major players, plus a markup.
Most major Canadian suppliers had argued for reforms, saying the traditional method of setting rates had meant that the amounts paid by wholesalers did not cover their expenses.
Instead, they wanted to introduce commercial negotiations as the method for setting the majority of wholesale service prices, saying this model would provide greater opportunity to meet the specific needs of competitors, while minimizing unnecessary regulation.
The CRTC has clarified that it will improve its current approach with adjustments such as taking into account market rates and other relevant information.
The regulator adds that it will also remain open to using other approaches on a case-by-case basis, where it determines that a particular situation requires a different model to ensure “just and reasonable rates”.
