GATINEAU, Que. – Canada’s telecom regulator is limiting the roaming rates the three biggest wireless carriers charge smaller carriers to piggyback on their networks, based on cost, for five years.
In a decision released Tuesday, the Canadian Radio-television and Telecommunications Commission also asked the Harper government to repeal legislation that currently limits what small carriers can charge the big players to use their wireless networks.
The decision could eventually result in lower retail roaming costs for customers of the smaller service providers when they leave their home network areas, officials said.
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“The measures that we are putting in place today in the wireless market will ensure that Canadians continue to have more choice as well as innovative high-quality services,” CRTC chairman Jean-Pierre Blais said in a statement.
But it was unclear whether removing the roaming cap on local and regional carriers – and allowing market forces to take over – will benefit customers of Bell, Rogers and Telus when they roam with their smartphones or other wireless devices in territory controlled by the smaller firms.
Regional carriers, including Saskatchewan’s SaskTel and MTS in Manitoba, had argued that the blanket regulations imposed by the federal government meant that they were being forced to let Telus, Rogers and Bell use their networks at a discount.
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Effective Tuesday, wholesale roaming rates charged by the big three wireless providers will be set in stone for six months, the CRTC said, until Bell, Rogers and Telus file final rate proposals with the regulator by Nov. 4.
Regulatory officials said they expected rates for GSM and LTE services to be set based on the cost of providing the service, plus a markup assumed at 15 per cent, and be frozen for at least five years.
The decision does not apply to newer technologies, should service providers adopt them within the five-year time frame.
The CRTC said it made the move because it determined through a public hearing process that there’s not enough competition among the big three carriers to benefit consumers.
Wholesale roaming rates that were capped under legislation imposed by the government last year are based on the retail rates provided by carriers.
Officials said there is an expectation that wholesale rates will be lower six months from now, although Bell, Rogers and Telus can argue for a higher markup, on top of costs that they must justify to the CRTC.
“Over the next few months, the next few years, we expect there will be more choice,” said an official who could not be identified.
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