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Telecom Order CRTC 2022-347

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Ottawa, 21 December 2022

Public record: Tariff Notice 75

Rogers Communications Canada Inc. – Modifications to aggregated third-party Internet access services

Application

  1. The Commission received an application from Rogers Communications Canada Inc. (RCCI), dated 30 November 2022, in which the company proposed changes to its aggregated third-party Internet access (TPIA) services. Specifically, RCCI proposed to (i) introduce a 1.5 gigabit per second (Gbps) service speed, at a monthly rate of $73.68 for end-users; and (ii) destandardize its 1 Gbps service speed in Ontario, effective 17 February 2023.
  2. RCCI proposed to offer the 1.5 Gbps service speed in accordance with the speed-matching requirement set out in Telecom Regulatory Policy 2010-632. The company provided a cost study to support the proposed monthly rate of $73.68, which was based on a newly proposed speed band of 1025 to 1500 megabits per second (Mbps).
  3. RCCI also indicated that it is upgrading its upstream speeds for certain speed tiers to 30 and 50 Mbps, without any changes to existing rates. RCCI submitted that it has already implemented this change for its retail and wholesale customers, and provided revised tariff pages as part of its application.
  4. On 5 December 2022, TekSavvy Solutions Inc. filed a procedural request asking the Commission to either require RCCI to divide its application in two – one for the introduction of new services and service upgrades, and one for the destandardization of the 1 Gbps service – or to issue two different deadlines for these two issues, since competitor tariff applications and destandardization applications are subject to different intervention periods set out in Telecom Information Bulletin 2010-455-1.

Commission’s analysis

  1. Given the extensive cost study and the time required to review and analyze the cost inputs, the Commission will assess an interim rate for the proposed speed band of 1025 to 1500 Mbps in order to make the new 1.5 Gbps service speed available to TPIA customers as quickly as possible.
  2. The Commission considers that the use of a proxy approach to set the interim rate would be appropriate. Under the proxy approach, the interim rate for new speed bands is set equal to the approved rate for the next lower existing speed band. The Commission has used this approach in the past to set interim rates for new service speeds, most recently in Telecom Orders 2022-96 and 2022-97.
  3. In Telecom Decision 2021-181, the Commission approved final rates for RCCI’s aggregated TPIA service for speed bands 1 to 8. The rate for speed band 8 (which covers the fastest speeds, from 751 to 1024 Mbps) was set at $49.06 per month.
  4. The Commission considers it appropriate to set the interim monthly rate for RCCI’s proposed speed band of 1025 to 1500 Mbps and its associated 1.5 Gbps service speed at $49.06, which is the rate for the next lower speed band.
  5. In addition, the Commission notes that RCCI’s revised tariff pages with the modified 30 and 50 Mbps upload speeds are in compliance with the notification procedures set out in paragraph 210 of Telecom Decision 2006-77.
  6. Finally, taking into account the timelines set out in Telecom Information Bulletin 2010-455-1 for destandardization applications, the Commission considers it appropriate to amend the deadline for interested parties to submit interventions to RCCI’s application to 2 February 2023.Footnote 1

Conclusion

  1. In light of the above, the Commission approves on an interim basis a monthly rate of $49.06 for RCCI’s speed band ranging from 1025 to 1500 Mbps and its associated 1.5 Gbps aggregated TPIA service speed.
  2. Given that RCCI’s application remains open for comments, the Commission will address the company’s destandardization request in a separate order.
  3. The deadline for interested parties to submit interventions regarding RCCI’s application is amended to 2 February 2023.

Policy Directions

  1. In accordance with subparagraph 1(b)(i) of the 2006 Policy Direction,Footnote 2 the Commission considers that the approval of RCCI’s application to introduce a 1.5 Gbps service speed will advance the telecommunications policy objectives set out in paragraphs 7(b), (c), and (f) of the Telecommunications Act.Footnote 3 Furthermore, the Commission considers that its determinations in this order are consistent with the 2019 Policy Direction,Footnote 4 namely the principles set out in paragraphs 1(a)(ii), (iii), and (v).Footnote 5   
  2. Specifically, the introduction of the 1.5 Gbps service speed encourages greater competition in Ontario, fosters affordability, and lower prices of high-speed Internet access services where RCCI exercises market power. It also ensures that more high-quality telecommunications services become available in Ontario and reduces barriers to competition and entry in the retail market for services in the highest available speed band.

Secretary General

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