Cogeco disappointed with network reselling rules

Executive Summary

• Cogeco Inc. publicly condemns the Canadian federal government's decision to uphold the CRTC's wholesale Internet regime, describing it as "broken" and "non-sensical."
• The company argues that maintaining the current regulatory framework unfairly benefits major telecom competitors (Bell, Rogers, and Telus) at the expense of regional players, stifling competition and investment in digital infrastructure.
• Cogeco has announced its intention to continue challenging the CRTC's approach, specifically through the Federal Court of Appeal.

Key Details

• Regulatory Stance: Cogeco expresses dismay and profound disappointment regarding the cabinet's failure to correct the CRTC's wholesale Internet regime.
• Competitive Impact: The company asserts that the current regime allows the "big three" telecom players to expand by reselling the networks of smaller regional players, which stifles competition.
• Investment Concerns: Cogeco warns that the inaction will lead to reduced consumer choice and stalled network investments.
• Legal Action: Cogeco will continue to challenge the CRTC's wholesale regime, including through the Federal Court of Appeal.
• Company Profile: Cogeco is a North American leader in telecommunications and media, serving 1.6 million residential and business subscribers in Canada and 13 U.S. states, and operates 21 radio stations in Canada.

Notable Quotes

• "The federal cabinet's inaction is unacceptable... It directly contradicts government efforts to promote sustainable competition and drive economic growth. The CRTC's current approach undermines choice and affordability, halting crucial innovation and investment vital for Canada's future. Unless corrected, this policy will have a detrimental impact on consumers and the broader Canadian economy." — Frederic Perron, President and CEO, Cogeco Inc.