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TORONTO — There is agreement that Canadians should pay less for wireless and Internet service, but it will be difficult to keep prices low for long without investing in the network, CRTC Chairman Ian Scott said Thursday.
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Retail prices could drop even faster if internet and wireless service resellers simply pay to use someone else’s network, said Scott, head of Canada’s federal telecommunications regulator.
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But countries with large numbers of dealers tend to see service quality decline and consumer prices rise again in the long run, as competitors cut profit margins to unsustainably low levels to win customers, Scott said.
“It doesn’t really convince us that there will be sustainable competition going forward,” Scott said.
On the other hand, he said, when a company invests in the infrastructure needed to deliver those services, those assets don’t disappear, “even if the company disappears, so to speak.”
“It creates access to these facilities for others, and maybe they will come to market at a lower unit cost and be more competitive.”
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He made the comments during a live-streamed interview with telecommunications journalist Shruti Shekar, which was streamed live by the Canadian Club of Toronto, which has a tradition of hosting public policy speakers.
Shekar said viewers left messages asking how the CRTC could respond to the disappearance of internet promotions during the pandemic and the high cost of wireless data, which has come down under government pressure.
“We’ve always wanted lower rates. Our view is that lower rates and reliable service are best achieved through strong competition,” Scott said.
Rates for home broadband service have been flat since 2015, when a CRTC decision said regional phone and cable Internet service providers must sell wholesale high-speed access to independent ISPs, he said.
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Scott said he could not comment on what steps the CRTC is taking to reduce wholesale internet rates from levels set in 2016 because the long-awaited decision has not yet been made.
“If you’re asking me if wireless rates should be lower in Canada, the answer is yes,” Scott said. “If you ask me if interest rates are too high, the answer is yes.”
Scott said a recent CRTC wireless decision opted to allow a hybrid approach that would require wireless carriers in the three countries to negotiate wholesale deals with regional carriers that want to expand.
Some consumer advocates and communications companies have complained that the CRTC’s April 15 decision fails to provide any support for more localized or specialized mobile virtual network operators (MVNOs)
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In addition, consumer group Open Media said the CRTC placed too much trust in Canada’s regional carriers because the largest of them – Freedom Mobile and its parent company Shaw Communications Inc. – could be replaced by Rogers Communications Inc., which owns Canada’s largest wireless business. . Acquisition.
The Rogers-Shaw agreement, which was approved by Shaw shareholders on Thursday, cannot be completed without approval from the CRTC, the Competition Bureau and the government’s industry sector.
Scott said the CRTC has limited jurisdiction over mergers, including ensuring that operators are Canadian-owned or Canadian-controlled, as well as some approvals related to their pay-per-view licenses.
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Crtc Chair Says It’s Hard To Sustain Low Wireless, Internet Prices In Long Term
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This normalization of remote work has more people asking, “Can I get online at home?” And not just any business Internet. Dedicated Internet Access (DIA) is increasingly being asked by those whose work requires a high-quality connection with guaranteed bandwidth and speed.
Yes, you can get dedicated business internet at home, but understand that residential DIA is a new and difficult field to navigate. That said, you can find residential DIA more easily if you keep these things in mind.
Can You Get Dedicated Internet Access (dia) At Home? Yes, But…
Knowing that you can get a dedicated business Internet line at home, the next question is, do you need it? Residential DIA is best for workers who frequently upload large amounts of data. Consider writing and shipping large amounts of code, editing audio and video files, or collaborating on large design projects.
This kind of work can clog home internet lines, because residential connections emphasize download speeds over upload speeds. Internet Service Providers (ISPs) such as Comcast may offer plans with download speeds of up to 600 Mbps but upload speeds of only 35 Mbps. This is great for streaming Netflix and YouTube, but it limits your ability to handle data-intensive work. What’s more, home internet speeds are often quoted as best bandwidth estimates, not actual bandwidth offered. During peak usage, the shared nature of residential network design means you might get 20 Mbps download and 3 Mbps upload on your “up to 200 Mbps” connection.
Residential DIA takes you off your shared line with your neighbors and replaces it with your own dedicated line. This increases your upload speed to match your download speed (also known as symmetric bandwidth). You also get more security because you don’t share the line with anyone. Your connection will be backed by an SLA that guarantees speed and uptime.
2. Most commercial internet providers receive few residential DIA orders and they do not have a process in place
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Buying a residential DIA means you have to browse the commercial channels as an individual user. This is no easy task, especially in a large industry such as IT and telecommunications. So few succeeded (or even tried) that domestic demand for DIA grew slowly. And those who do manage to get an offer are often put off by the price shock.
The average cost of private internet access is several hundred dollars more per month than home internet. It can even climb to over $1,000 per month. Sales reps knew that unless the person contacted was an IT executive ordering a DIA for an executive’s home, the price could scare off customers. On top of that, sales reps shy away from residential DIA sales because they cling to conventional thinking (“We don’t sell DIA to homes”), which is one of the biggest problems with buying telecom services.
These factors have also created a lot of misunderstanding among service providers. If you call any ISP’s 1-800 number for residential DIA, you’ll likely get a definitive answer from a billing or support specialist. Or you might reach out to people who are familiar with it, but only on the surface.
For example, an ISP representative might tell you that residential DIA service is not available because it requires leased lines from a large carrier like AT&T. But AT&T was happy to cooperate because the Telecommunications Act of 1996 required carriers to allow wholesale access to their networks. In this case, the rep wasn’t lying. They just don’t know much about complex, rarely ordered services.
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3. You can get business internet at home, including DIA, but you’ll be censored and billed like a business
Breaking through to a sales representative who can provide you with a quote for business internet service for your home is a major milestone. But there are more challenges ahead. From here, the carrier will vet you like a business, not a homeowner. Why? Because economics has to work.
Let’s say you’re a business ISP in New York City. You’re going to invest $50,000 in laying fiber optic lines in a building with 700 units, thinking that if you can win business from 10% of those units, you’ll make even more money back. Compare this to digging a trench so you can connect a line to a house. Shrinking profit margins mean those numbers aren’t nearly as useful now.
So when the ISP reviews your residential DIA, they are doing a credit check on you as a business. They will also ask for your business tax ID number and your network specifications. This helps ISPs answer the following questions:
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If all goes well, congratulations! You’ve cleared another important milestone, getting a dedicated business internet at home. Now, all that’s left is to place an order and wait for a technician to show up with a Wi-Fi router, right? Not quite. Before installation, an on-site inspection is required. This brings us to the last hurdle.
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