Canada’s telecom regulator this week announced that it will regulate the wholesale mobile roaming rates the country’s big three operators are allowed to charge in a bid to bring more competition to the sector.
Canada’s smaller mobile operators require roaming arrangements in order to provide nationwide coverage to their customers, and the rates they pay must enable them to offer competitively-priced services, the Canadian Radio-television and Telecommunications Commission (CRTC) said on Tuesday.
Following a consultation, the regulator ruled that Bell Canada, Rogers and Telus collectively have power over the national roaming market that enables them to block competition.
"They have the ability and incentive to maintain rates and impose terms and conditions that would not be sustainable in a competitive market," said Jean-Pierre Blais, CEO of the CRTC.
As a result, the regulator has decided to regulate the prices they can c harge to other providers for access to their networks.
"We are directing these major providers to each file proposed tariffs for their wholesale roaming services," Blais said. "Until they do, we have established interim rates for these wholesale roaming services that will come into effect immediately."
The interim rates are equal to the maximum rates Bell, Rogers and Telus charge to rival providers as of the date of the ruling.
The three have until 4 June to submit their interim rates. They must file their final proposed rates by 4 November.
"Today’s decision is about finding the right balance," Blais said.
"We want sustainable competition that increases choice for Canadians. But we also need to make sure that wireless companies continue to invest in innovative and high-quality networks," he said. "And we want to ensure that smaller companies can compete on a fair playing field with their larger competitors, so that they too can offer innovative products and services."
