Canada to Cap Wholesale Wireless Rates Charged by the Big Three

Advertisement
By Reuters | Updated: 6 May 2015 17:41 IST
Canada will limit the wholesale wireless rates that major companies charge their rivals as part of a push to boost competition in the telecommunications sector, the country's broadcast regulator said on Tuesday.

The move means the three firms that dominate the market Telus Corp, BCE and Rogers Communications Inc will have to charge lower rates than at present. This is designed to allow smaller firms to expand.

Boosting telecom competition is a priority for the federal Conservative government, which since 2008 has set aside some of the airwaves the wireless industry relies on for new entrants and regional players, with mixed success.

Advertisement

The broadcast regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), said Bell, Telus and Rogers "can maintain rates and impose conditions that would not prevail in a competitive market".

It added in a statement: "Other Canadian wireless companies need to obtain these services under reasonable rates, terms and conditions."

Advertisement

The ruling should give less powerful rivals such as Wind Mobile and Quebecor Inc's Videotron unit more scope to expand their services to more of the country.

The smaller companies have long complained the big three charge unreasonable rates and are slow to respond to requests for roaming and tower-sharing deals, thereby hindering competition.

Advertisement

The government last year imposed an interim ruling that meant the major firms could charge rivals no more than the wholesale roaming rate offered to their own retail customers.

The CRTC will maintain that cap for six months, when the big three firms must come back with new rates for wholesale wireless roaming and a costing to explain the proposals. The CRTC can reject the rates if it feels they are too high.

Advertisement

CRTC officials made clear the new tariffs would be less than the current capped rates and stressed the big three firms would not be losing money, since they would be allowed to cover their costs and then add a certain percentage.

Rogers, BCE and Telus each have more than 8 million mobile customers out of less than 30 million in total. The companies say they spend billions on network-building and should not be forced to share them at a discount.

The new system, which only covers GSM technology, will be in place for a minimum of five years, starting May 5.

© Thomson Reuters 2015

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Roaming, Telecom
Advertisement

Related Stories

Popular Mobile Brands
  1. Best Smartphones With 512GB Storage in India
  1. Oppo May Expand Product Lineup With New Foldable Phone and Gimbal Camera
  2. Best Smartphones With 512GB Storage in India: Samsung Galaxy S26 Ultra, iPhone 18 Pro Max, More
  3. Xiaomi 18 Pro, Redmi Note 17 Aura India Launch Tipped for January 2027; Xiaomi 18T Could Arrive Later
  4. Bitcoin Firm Nakamoto Extends Debt Deal as Stock Valuation Takes a Hit
  5. Samsung Galaxy A18 5G Spotted on Bluetooth SIG Ahead of Expected Launch
  6. South Korea’s Upbit Pauses OSMO Deposits and Withdrawals After Network Failure
  7. Meta Muse AI Can Now Make Phone Calls to Businesses for Paid Subscribers
  8. Claude Meetings Launched in Beta for Team and Enterprise Subscribers: Features, Availability
  9. Redmi Note 18 Series Phone Reportedly Spotted on 3C Certification Site; Charging Speed Tipped
  10. Vivo X500 Series Camera Configuration and Colour Options Revealed Ahead of India Launch
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.