In an attempt to boost broadband competition, Canada’s telecom regulator is forcing large phone companies to open their fiber networks to competitors. Smaller companies will be allowed to buy network capacity and use it to offer competing broadband plans to consumers.
Evidence received during a comment period “shows that competition in the Internet services market is declining,” the Canadian Radio-television and Telecommunications Commission (CRTC) said in its announcement Monday. The CRTC said the “decrease is most significant in Ontario and Quebec, where independent competitors now serve 47 percent fewer customers than they did just two years ago. At the same time, several competitors have been bought out by larger Internet providers. This has left many Canadians with fewer options for high-speed Internet services.”
The CRTC hasn’t made a final decision on fiber resale. But in the meantime, until a more permanent ruling is made, large telcos in Ontario and Quebec will be “required to provide competitors with access to their fibre-to-the-home networks within six months,” the CRTC said. The six-month period is intended to give companies time to prepare their networks and develop information technology and billing systems, the agency said.
“On a temporary and expedited basis, the CRTC is providing competitors with a workable way to sell Internet services using the fibre-to-the-home networks of large telephone companies in Ontario and Quebec, where competition has declined most significantly,” the agency said. “The CRTC is also setting the interim rates that competitors will pay when selling services over these fibre-to-the-home networks. These rates were chosen to allow Canada’s large Internet companies to continue investing in their networks to deliver high-quality services to Canadians.”
Advocates for wholesale fiber access welcomed the interim ruling but said that Canada’s regulator should have acted more quickly and forcefully to preserve competition.
Bell protests, says it will cut fiber spending
Fiber-provider Bell protested the ruling by announcing “its intention to reduce capital expenditures by over $1 billion in 2024-25, including a minimum of $500 to $600 million in 2024, money the company had planned to invest in bringing high-speed fibre Internet to hundreds of thousands of additional homes and businesses in rural, suburban and urban communities.”
“Rolling back fibre network expansion is a direct result of the CRTC’s decision,” Bell claimed. The telco said the CRTC’s decision “is arbitrary and capricious” because it doesn’t apply outside Ontario and Quebec.
Telus, another major fiber provider, “said the company is reviewing the interim decision and looking forward to participating in the remainder of the CRTC proceeding,” according to The Globe and Mail.
For over 20 years, the CRTC has “required large incumbent telephone and cable companies to sell access to their networks under specific rates, terms, and conditions,” the agency said. But fiber access wasn’t previously included.
“In 2015, the CRTC set out separate rules for accessing fibre, which have been so unworkable that 8 years later we still don’t have wholesale access to fibre,” according to an April 2023 post by OpenMedia, a nonprofit that advocates for open and affordable networks.
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.
The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.
Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.
On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.
In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.
It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.
This report by The Canadian Press was first published Nov. 7, 2024.
