The country’s telecom regulator said that the rates for MVNO access in Canada are to be commercially negotiated between the telcos
Canada’s telecom regulator issued a new regulation under which top mobile operators will be required to accept requests for access to their networks from smaller competitors in a move to boost competition and lower the costs of mobile plans.
According to the Canadian Radio-television and Telecommunications Commission (CRTC), this new regulation will support the deployment of mobile virtual network operators (MVNOs) in the country.
The CRTC noted that this decision is opening the door for more companies, in particular smaller regional wireless providers in rural areas, to foster competition by accessing the wireless networks of Canada’s largest providers.
The regulator also said that it will also ensure that MVNO access is offered on current and future wireless networks, including 5G.
The CRTC noted the three national wireless providers – Bell Mobility, Rogers and Telus – and SaskTel in Saskatchewan must now begin accepting requests for access to their networks and enter negotiations with regional wireless providers to agree on wholesale MVNO rates.
Bell, Telus and Rogers Communications concentrate nearly 80% of the mobile telephony market in terms of subscribers.
“We are one step closer to implementing our policy that will enable regional providers to offer wireless services in areas where competition is limited. This will help provide more affordable options to millions of Canadians while increasing competition. We expect the large providers to negotiate in good faith and come to an agreement as quickly as possible with regional wireless providers,” said Ian Scott, chairperson and CEO at the CRTC.
A CRTC review had found that competition in the domestic mobile market remains limited and that new operators trying to enter the market face barriers in launching services.
This service will be mandated by the CRTC for seven years, which will give the regional providers time to build and expand their wireless networks.
The regulator also said that the rates for MVNO access are to be commercially negotiated between the telcos. However, the CRTC will act as an arbitrator if necessary.
Prices for mobile wireless services in Canada have been coming down in recent years. For instance, the average monthly cost of a 5GB mobile package dropped by 11% between 2016 and 2021, according to the CRTC’s Communications Market Reports.
The country’s main telcos have already launched 5G spectrum using spectrum in the 3.5 GHz band.
Earlier this year, the government of Canada had set rules for its auction of 3.8 GHz spectrum, which is expected to happen in 2023.
The government had also previously announced the launch of a consultation process to award millimeter Wave (mmWave) spectrum bands.
The government said that the decision to launch a mmWave Licensing Framework Consultation will enable Canadians to benefit from higher quality wireless services and innovative new applications that use 5G technologies.
The government noted that the mmWave bands (26, 28 and 38 GHz) are expected to support both highly localized mobile 5G services and new applications for industries such as manufacturing and transportation.
This consultation follows a repurposing decision announced in 2019 and is the next major step in the lead-up to a mmWave spectrum auction planned for 2024.
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