Bell plans to cut investment in its high-speed internet network by $1-billion over the next two years after the CRTC gave it six months to give internet service providers in Ontario and Quebec wholesale access.
That's on top of last year's $100-million decrease in its capital expenditure budget in anticipation of the regulator's ruling. It also named Telus.
The decision isn't sitting well with Windsor West MP Brian Masse, who characterized it as "blackmail."
"Bell is cutting investment in internet infrastructure as a punishment to Canadians for the CRTC finally allowing for some competition in two provinces," said Masse, who also called the announcement "outrageous."
Masse accused Bell of price gouging consumers for decades and urged the federal government to act to rein the company in.
"Our country needs to restore price regulation, mandated telecom infrastructure investments, and a truly competitive marketplace," said Masse. "Other countries have done it and have significantly cheaper prices and vastly more choices."
The small Internet service provider market has ballooned since 2020, increasing by 40 per cent, and the CRTC expressed hope its decision would stabilize declining telecom competition.
Internet service providers, like Teksavvy, welcomed the CRTC decision but said the issue is wholesale rates.
"The CRTC set those wholesale rates higher than many of the retail prices Bell and Telus charge their own customers," said Teksavvy. "These wholesale rates alone will preclude effective competition and deny customers price relief."
"The large telecos are already selling fibre internet below the CRTC's new wholesale rates. As a result, those rates will make competition virtually impossible," said Teksavvy's Vice President of Regulatory and Carrier Affairs Andy Kaplan-Myrth.
The company also took issue with the CRTC's decision to restrict access to just Ontario and Quebec, saying "other regions are no less deserving."
Bell's fibre network is available to more than 7-million homes and businesses, and before the CRTC ruling, the company planned to increase that to 9-million by the end of 2025.
"When others scaled back investment at the onset of the COVID-19 pandemic, Bell leaned in and accelerated our annual capital expenditures to historic levels to provide Canadians with the reliable connectivity they needed," said President and CEO Mirko Bibic.
The CRTC decision did not mandate Bell and Telus to open access in western Canada.
"If the intent of the decision is to benefit consumers, then it is arbitrary and capricious to leave Western Canadian consumers behind," said Bell.
