Yesterday, the CRTC released a decision that forces big telcos must open up access to their fiber optic networks to competitors such as Primus, Distributel or TekSavvy. Keep in mind that big telcos are already required to do this with their copper based networks. Thus doing the same thing with fiber optic networks it levels the playing field and fosters competition.
Another change is that competitors are forced to use an “aggregated” model of service. Meaning that they tap into a single point of access and there may only be one per province. Because of that, they pay more because they have to pay to have data shuffled back and forth based on distance. Now the CRTC says that competitors must agree to a “disaggregated” model of service, where they are required to plug in much closer to the final consumer, at a regional point of access.The smaller companies would then have to arrange transport of data from that regional interface to their own offices, either by installing their own fiber optic cable, or by leasing it from an existing company. This is designed to discourage smaller competitors from acting as mere resellers of existing bandwidth. Instead, they in theory would add to the available bandwidth. But it also should reduce the cost that competitors have to pay.
It should be noted that big telcos will be allowed to charge fees for sharing their fiber optic cables in order to make a profit on their investments. The pricing model will be worked out with each company on the basis of actual cost, plus a markup of about 30 per cent. So it isn’t as if they have lost per se. Although I’m pretty sure the big telcos won’t see it that way.
One thing that I should note is that it will take a long time to see the effects of this. So if you’re hoping to switch ISPs to get faster Internet access on fiber optic cable, and the lower prices that come with dealing with an upstart ISP, you may have to wait for a while yet.