Telecommunications Company Telus emerges victorious in Minister Joly's competitive battle for fiber-optic internet
In a landmark decision, the Canadian government has chosen to maintain the CRTC's wholesale internet access regime, a move that is expected to accelerate fiber network expansion across the country. This decision, condemned by Cogeco, aims to reduce the cost of high-speed internet for Canadians and make life more affordable overall.
The long-term implications of this regulatory approach are significant. It encourages infrastructure sharing, which can reduce duplication of costly fiber builds, speed up network expansion, and foster digital inclusion across remote and Indigenous communities. This improved affordability and accessibility can potentially lead to more affordable internet service for consumers, expanded broadband access, especially in rural and underserved areas, and increased competition among Internet Service Providers (ISPs).
The government's stance is complemented by public-private partnerships and community-driven models that maximize efficient deployment and management of fiber infrastructure. For instance, efforts supported by grants such as the Canadian Internet Registration Authority’s Net Good Grant aim to connect thousands of rural and Indigenous households through community-owned fiber networks. These initiatives leverage cooperative models and open-access broadband infrastructure to promote equitable internet service.
Next-generation fiber technologies like 10G-PON and XGS-PON, combined with government funding programs such as Canada's Universal Broadband Fund, are gaining traction in 2025. These advancements support expanding fiber to low-density rural areas, helping to bridge the urban-rural digital divide and stimulate local economies by enabling telework, online education, and precision agriculture.
However, critics argue that the policy may lead to a lack of incentive for large companies to install their own infrastructure. They fear that this could have catastrophic long-term network investment consequences. In response, the CRTC has stated that the evidence shows only a "modest short-term impact" of its decision on the market share of regional competitors.
The policy allows major internet providers, including Bell, Rogers, and Telus, to access their competitors' fiber network outside their territory at a regulated price. Telus, for instance, can now offer fiber optic internet in cities like Montreal where it had not built infrastructure before. Telus' CEO, Darren Entwistle, has called Minister Melanie Joly's decision "historic". The company has launched a public opinion campaign comparing the regulatory affair to "a battlefield" for internet prices.
Meanwhile, in Quebec, Hochelaga, Montreal, has emerged as the new epicenter of the Quebec hip-hop scene, with artists like Calamine, Mike Shabb, and dope.gng residing in the area. In a separate development, the Quebec Liberal Party leads in a poll, with the party of François Legault suffering a significant setback.
The battle for fiber internet in Canada continues, with the CRTC prepared to make "any necessary modifications in the public interest" if needed. A federal appeal court case involving Quebec company Cogeco, along with the Public Interest Advocacy Centre and Rogers and Bell, is ongoing. The CRTC, in a revision of its decision published in June, reiterated its commitment to ensuring a competitive and affordable market for high-speed internet in Canada.
[1] Canadian Internet Registration Authority (CIRA). (2021). Community-Owned Fiber Networks: Bridging the Rural Divide. Retrieved from https://www.cira.ca/en/about-cira/news-and-events/blog/community-owned-fiber-networks-bridging-the-rural-divide
[2] Industry Canada. (2021). Canada's Universal Broadband Fund. Retrieved from https://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/home
[3] PwC. (2021). The State of Fiber in Canada 2021. Retrieved from https://www.pwc.com/ca/en/services/consulting/telecom-media-and-technology/state-of-fiber-in-canada-2021.html
[4] Canadian Radio-television and Telecommunications Commission (CRTC). (2021). Decision CRTC 2021-266: Wholesale Access to HFC Networks. Retrieved from https://crtc.gc.ca/eng/archive/2021/2021-266.htm
The regulatory approach, fostering infrastructure sharing and cooperative models, can potentially lead to a political shift in the finance sector, with public-private partnerships and community-driven initiatives potentially creating more affordable internet service and expanded broadband access, especially in rural and underserved areas. This increased competition among Internet Service Providers (ISPs), facilitated by the CRTC's decision, may also impact the political sphere, as the industry restructures and responds to the new regulations.
