CRTC orders cut to some internet prices amid industry review. What’s going on?

Canada’s telecom regulator is slashing some wholesale internet prices by 10 per cent while it reviews competition in the internet services industry in a surprise move.

The Canadian Radio-television and Telecommunications Commission (CRTC) announced the price cut Wednesday while it conducts a review into internet services in Canada “to increase competition, create more choice and lower prices.”

“The CRTC recognizes its current approach is not meeting its objective of encouraging more competition in the Internet services market,” the agency said.

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“The CRTC will re-examine the rates competitors pay large telephone and cable companies for access to their networks. While it carries out this review, the CRTC is imposing an immediate 10 per cent reduction on some wholesale rates.”

It is not yet clear where those cuts will apply.

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The CRTC said it will also examine on “an expedited basis” whether large telephone and cable companies should provide competitors with access to their fibre networks, enabling faster Internet speeds for their customers.

The CRTC is welcoming comments until April 24 on that issue, while accepting comments for other issues of its review until June 22.