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Telecom Order CRTC 2023-357

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Ottawa, 3 November 2023

Public records: Tariff Notices 15 and 15a

Câblevision du nord de Québec inc. – Tariff Notices 15 and 15A – Destandardization of third-party Internet access service

Summary

The Commission approves Câblevision du nord de Québec inc.’s applications regarding the destandardization of its third-party Internet access service, with a speed of 250 megabits per second (Mbps) downstream and 20 Mbps upstream, effective 3 November 2023.

Application

  1. The Commission received an application from Câblevision du nord de Québec inc. (Câblevision), Tariff Notice (TN) 15, dated 5 June 2023, in which the company proposed a change to its General Tariff for third-party Internet access (TPIA). Câblevision proposed the destandardization of the company’s TPIA service speed of up to 250 megabits per second (Mbps) downstream and 20 Mbps upstream (250 Mbps service), which has a monthly access rate of $51.25.
  2. Câblevision noted that in TN 14, which was filed on the same date as TN 15, it proposed the introduction of a new TPIA service with a speed of up to 500 Mbps downstream and 30 Mbps upstream (500 Mbps service), also at a monthly rate of $51.25.
  3. Câblevision submitted that the 500 Mbps service is an improvement to their current service offering, and that the destandardization of the 250 Mbps service would not have any negative impact on their wholesale customers.
  4. Câblevision proposed that, with the introduction of the 500 Mbps service, it would no longer make the 250 Mbps service available to new customers. However, existing customers would be able to keep the 250 Mbps service until they move, or change or cancel the service.
  5. Câblevision submitted that on 5 June 2023 it had informed its TPIA customers of its proposals in TNs 14 and 15, and let them know that existing customers of the 250 Mbps service would be able to keep it until they move, or change or cancel the service.
  6. Câblevision proposed an effective date of 8 August 2023.
  7. On 12 July 2023, Câblevision filed TN 15a to inform the Commission that it had supplied its TPIA customers with the proposed effective date of the destandardization, which it had neglected to do in its original letter to customers.
  8. The Commission received an intervention with respect to the applications from Quebecor Media Inc. (QMI), on behalf of its subsidiary Videotron Ltd. (Videotron), dated 12 July 2023.

Intervention and reply

  1. QMI requested that the Commission direct Câblevision to continue to offer the 250 Mbps service to its TPIA customers. QMI submitted that the destandardization of the 250 Mbps service and the introduction of the 500 Mbps TPIA service would increase Videotron's capacity costs, because end-users who opt for faster speeds tend to have higher data consumption.
  2. In its reply, dated 24 July 2023, Câblevision submitted that, with the new service, QMI could choose to either provide its customers with the same enhanced speed that Câblevision would offer its own customers, or limit the access speed to address its concerns about total usage. Câblevision also submitted that, following QMI’s reasoning, no wholesale service provider would be permitted to withdraw a slower speed service, even if it ceased to be available at the retail level, because faster speeds can lead to increased capacity charges.

Commission’s analysis

  1. In Telecom Information Bulletin 2010-455-1, the Commission set out the requirements for the destandardization and withdrawal of tariffed services. In accordance with those requirements, Câblevision has informed affected customers of its proposal to destandardize the 250 Mbps service and has provided a rationale for the destandardization.
  2. In Telecom Order 2023-326, the Commission approved TN 14 on an interim basis, effective 26 September 2023, enabling Câblevision to make the 500 Mbps service available to its TPIA customers at the same price as the 250 Mbps service.
  3. The Commission considers that Câblevision’s proposal to destandardize the 250 Mbps service is reasonable and applies equally to wholesale and retail customers.
  4. Regarding QMI’s intervention, the Commission notes that QMI did not provide evidence that limiting the access speed of the new service to 250 Mbps would be technically or economically infeasible.
  5. The Commission considers that QMI has the choice to either pass on the full speed of the new 500 Mbps service to its end users, thereby providing its customers with the same enhanced speed as that offered by Câblevision, or limit the speed to 250 Mbps in order to address its concerns about total usage.
  6. The Commission also notes that, as per Telecom Regulatory Policy 2010-632, should Câblevision choose to reintroduce the 250 Mbps speed for its retail customers, it would be required to make it available to its TPIA customers as well.

Conclusion

  1. In light of the above, the Commission approves Câblevision’s applications, effective 3 November 2023.

Secretary General

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