On August 6, 2025, the Canadian federal government upheld a ruling by the Canadian Radio-television and Telecommunications Commission (CRTC) that mandates large telecommunications companies to provide competitors, including fiber service resellers, access to their existing fiber-to-the-home networks for a fee, effective February 2025. This decision, initially implemented in Ontario and Quebec in November 2023 and now expanded nationwide, presents significant opportunities for fiber service resellers while impacting other types of telecom service providers in Canada. Clients should evaluate how this ruling can enhance their market presence and address potential challenges for compliance and competition.
The ruling aims to foster competition and affordability in Canada's high-speed internet market, but its implications vary across different types of telecom providers, particularly for resellers who do not own facilities in Canada.
Scope and Applicability
The CRTC's ruling applies to large telephone companies (e.g., Bell Canada, Rogers, Telus) with existing fiber networks, requiring them to grant competitors access to these networks outside their core regions. The policy covers only existing fiber infrastructure, with new fiber builds exempt from wholesale access for five years to encourage investment. This framework directly benefits fiber service resellers, such as our clients, who can now leverage these networks to offer services without building their own infrastructure.
Impact on Fiber Service Resellers
For resellers, this rule opens new markets by allowing access to high-quality fiber networks owned by major providers. Key benefits include:
- Market Expansion: Resellers can offer competitive high-speed internet services in regions where they lack infrastructure, such as Ontario, Quebec, and soon the Atlantic provinces.
- Cost Efficiency: By paying a wholesale access fee, resellers avoid the high capital costs of building fiber networks, enabling competitive pricing.
However, resellers must monitor the CRTC's forthcoming access rates, expected by year-end 2025, as high fees could limit profitability
Impact on Other Telecom Service Providers The ruling has mixed implications for other telecom providers in Canada:
Independent ISPs: Non-facility-based independent internet service providers (ISPs) benefit similarly to resellers, gaining access to major networks. However, they face challenges if access fees are not cost-competitive.
Mobile Virtual Network Operators (MVNOs): While the ruling focuses on fiber, it aligns with earlier CRTC policies allowing regional telecoms to act as de facto MVNOs by accessing competitors' wireless networks. This could indirectly benefit resellers offering bundled internet and mobile services, but MVNOs remain limited in Canada compared to markets like the U.S. or Europe.
Consumer Rights and Market Dynamics
The CRTC's framework aims to enhance consumer choice and
affordability by increasing competition. Consumers benefit from
more provider options, potentially leading to lower prices, though
the CRTC notes it's too early to confirm price impacts until
access fees are finalized. Resellers must ensure compliance with
consumer rights, such as transparent pricing and service
agreements, to maintain trust and meet regulatory
expectations.
Unique and Noteworthy Provisions Five-Year Exemption for New
Fiber:
New infrastructure is exempt from wholesale access for five years,
balancing investment incentives with competition. Resellers should
plan for delayed access to new networks in growing regions.
Regional Restrictions:
Large providers can only access rivals' networks outside their
core regions, preventing dominant players from undermining
competitors in their strongholds. This protects regional carriers
but limits resellers' access in some areas.
Consultation-Driven Policy:
The CRTC's decision followed extensive consultation with
experts, the Competition Bureau, and over 300 public submissions,
ensuring a balanced approach. Resellers should stay engaged in
future consultations to influence access fee structures.
Enforcement and Rulemaking
The CRTC enforces the ruling, with no private right of action for consumers. Non-compliance could lead to regulatory penalties, though specific fines are not outlined. The CRTC has not authorized additional rulemaking but may revisit rates or policies based on market outcomes. Resellers should monitor updates to ensure compliance and advocate for favorable rates.
- What Should Fiber Service Resellers Do
Now?
Assess Market Opportunities: Identify regions with accessible fiber networks (e.g., Ontario, Quebec, Atlantic provinces) to expand service offerings. - Monitor Access Fee Developments: Prepare for the CRTC's rate-setting by year-end 2025 to ensure cost-effective access.
- Engage with industry groups to advocate for fair pricing.
- Enhance Service Offerings: Develop competitive plans leveraging fiber access to attract customers, focusing on affordability and quality.
- Update Contracts with Vendors: Ensure agreements with network providers align with CRTC requirements for access and compliance.
- Train Staff: Educate teams on the ruling's implications, consumer rights, and competitive strategies to maximize market entry.
- Stay Informed: Participate in CRTC consultations and monitor regulatory updates to anticipate changes in access fees or policies.
The CommLaw Group Can Help!
The CommLaw Group's telecommunications and regulatory team is ready to assist clients in navigating Canada's evolving telecom landscape. We offer market entry assessments, regulatory compliance reviews, contract drafting, and advocacy strategies to optimize opportunities under CRTC's wholesale framework. Please reach out to schedule a consultation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
