This Is Why It's Impossible For Internet Companies To Offer Cheaper Plans In Canada
It's not going to change anytime soon.
It's no secret that Internet packages have gotten increasingly popular over the past few years as Canadians become more and more dependant on it. From streaming Netflix to downloading just about any and everything, most people can't even go an hour without using the Internet in some shape or form at home.
Of course, when companies see a demand, they like to hike prices, and Internet providers are no different. Just take that time last fallBut, the issue isn't just limited to mobile devices, as the topic of concern is home Internet plans.
Many Canadians blame their providers for predatory Internet pricing. It's clear a more fair marketplace is necessary. Unfortunately, for smaller companies attempting to offer the same services for lower prices, the CRTC's rules are making it nearly impossible to survive let alone compete, according to a CBC report.
The Canadian Network Operators Consortium, which represents 35 smaller Internet providers, filed an application with the CRTC to review who has access to ultra-fast fibre optic networks. According to the CBC report, the CRTC allows smaller independent Internet companies to rent network access from major providers such as Bell and Rogers. Those larger providers resell the service to customers.
The lack of accessibility CNOC providers have to the network makes it extremely hard for Canada's independent Internet providers to get a foot in the door when it comes to offering competing prices.
The main issue at hand is that as of now, Canada's major players in the Internet service industry are able to rent out their network access to smaller companies. Since these smaller companies have to rent access and then try to make a profit, it's impossible for them to offer prices to customers that compete with the larger companies.
As a result, the CNOC is attempting to encourage the CRTC to change the structure around network access so that Canada has a more open market when it comes to Internet packages. More options mean that lower rates would be more common.
Unfortunately, the CRTC cannot comment on open cases. So as of now, it's not clear whether we will be seeing a more open market in the near future. Though it is uplifting to see that the independent companies getting boxed out of the market aren't going down with a fight.
*Cover photo used for illustrative purposes only.
Source: CBC News