The CRTC's latest decision will help deliver more affordable cellphone plans to Canadians, while also ensuring that companies continue to invest in high-quality networks. The decision sets the rate that Quebecor Media Inc. (Quebecor) will pay Rogers Communications Canada Inc. (Rogers) when offering services using Rogers' wireless network across Canada.
Today's decision is the latest step in implementing the CRTC's policy to increase cellphone competition in Canada. This policy allows regional companies to compete as mobile virtual network operators (MVNOs) using the networks of Canada's large companies. With access to larger networks, regional competitors are able to offer services in parts of Canada that they do not currently serve. Regional competitors must then build their own networks in these areas within seven years.
On May 9, the CRTC set the rules for MVNO access and gave companies until August 7 to negotiate agreements. When companies cannot come to an agreement, they can ask the CRTC to set the rate through a process known as final offer arbitration. This process requires each company to submit a proposed rate for the CRTC's consideration. Quebecor and Rogers asked the CRTC to initiate arbitration.
After a thorough analysis and detailed consideration of the two proposals, the CRTC chose the rate proposed by Quebecor. As required by the Telecommunications Act and the 2023 Policy Direction, the CRTC balanced competition, affordability, and investment in networks. Although details of the rate are confidential and cannot be disclosed, key aspects of the CRTC's analysis are explained in today's decision.
Now that the rate has been set, Quebecor (through Videotron, Freedom Mobile, and Fizz) is expected to offer cellphone services in more areas across Canada.
