ISP asks Cabinet to remove “biased” chair and reinstate evidence-based 2019 Rates Order

May 28, 2021. Chatham, Ontario. TekSavvy Solutions Inc. (“TekSavvy”) has petitioned the Liberal Government to overrule yesterday’s CRTC decision, which arbitrarily reversed its own 2019 decision lowering wholesale rates charged by Canada’s largest carriers (such as Bell Canada and Rogers) to smaller competitors (like TekSavvy). TekSavvy requested that the federal cabinet fulfill its mandate from the Prime Minister to support consumer choice and competition and ensure quality, affordable internet and mobile access, by taking the following steps:

• Correct the bias. A CRTC chairperson should not participate in proceedings about which they have a clear bias. In this case, CRTC Chairman Scott expressed a clear bias for one type of competition and market structure. We ask that Chairman Scott be removed from his position with immediate effect or, at the very least, be required to recuse himself from decisions involving wholesale- and facilities-based competitors.
• Reinstate the 2019 Rates Order. The 2019 Rates Order has already been reviewed and upheld by the Federal Court of Appeal. The Supreme Court of Canada and the Cabinet similarly opted not to modify it. Yesterday’s decision to completely reverse the conclusions of its comprehensive rates study is clearly not within the range of reasonable decisions. Cabinet must immediately reinstate the CRTC’s 2019 Rates Order.
• Direct incumbents to immediately remit retroactive payments. Bell Canada, Bell MTS, Cogeco, Eastlink, Rogers, Sasktel, Shaw, TELUS and, Videotron should be required to immediately remit all retroactive payments owed under the 2019 Rates Order to competitors.
• Reaffirm Phase II costing. We ask that you reaffirm that Phase II costing is the appropriate means for determining wholesale rates.
• Direct the Commissioner of Competition to address the incumbents’ anti-competitive activity. The CRTC’s decision underscores that the affordability of internet services for Canadians cannot be solved by solely relying on the CRTC to address the incumbents’ actions. We ask you to direct the Commissioner of Competition to conclude its investigation into the incumbents’ abuses of dominance and enforce its governing statute. 

“The CRTC’s disregard for both its own mandate from Cabinet, as well as Cabinet’s mandate from the Prime Minister, makes it clear that the CRTC actively undermined this government’s agenda and promises to Canadians” said Andy Kaplan-Myrth, TekSavvy’s VP of Regulatory and Carrier Affairs “The CRTC has ignored Cabinet’s directions to it and has placed the interests of large incumbent telecommunications providers above the interests of Canadians”.

About TekSavvy

Based in Chatham, Ontario, TekSavvy is Canada’s largest independent telecom service company, serving over 300,000 customers from coast to coast. TekSavvy has been proudly delivering award-winning services and fighting for consumers’ rights for more than 20 years. TekSavvy is committed to providing quality competitive choice and closing Canada’s digital divide.

For more information contact

Trevor Campbell,
The iPR Group 647-201-5409

John Settino,
The iPR Group 416-662-2955

media.relations@teksavvy.ca