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CRTC decision on MVNO access sets rules between regional players, incumbents

The Canadian Radio-television and Telecommunications Commission (CRTC) says it’s one step closer to enabling the deployment of mobile virtual network operators (MVNOs) in Canada.

The Commission published a lengthy decision on October 19th covering the terms and conditions related to MVNO service and measures to govern relationships between regional providers and incumbents like Bell, Rogers, Telus, and Sasktel.

MVNOs operate on top of existing networks to offer service (similar to how independent ISPs use existing broadband infrastructure to offer internet services to Canadians, but for mobile networks). The CRTC mandates the national wireless providers (Bell, Rogers, and Telus) — as well as SaskTel in Saskatchewan — provide network access to regional carriers.

As a quick refresher, the CRTC chose to pursue a facilities-based MVNO model in April of 2021. The decision came as a disappointment to many since it required regional providers to have invested in network infrastructure and spectrum to gain MVNO access. Critics said that requirement would limit who could launch MVNO services in Canada.

While the October 19th decision maintains that requirement, it also establishes several other details of MVNO access. You can access the entire decision here, but we’ll tackle some of the standouts below.

First, the CRTC denied various provisions restricting MVNO eligibility based on minimum spectrum holdings and other spectrum-related issues. However, regional wireless carriers seeking MVNO elibility must still register as a wireless carrier with the Commission, have a home public mobile network somewhere in Canada, and actively offer mobile wireless services to retail customers. Moreover, the CRTC expanded eligibility to regional wireless carriers that hold local telephone spectrum licences.

The CRTC also decided that the MVNO access service should be considered an extension of a regional carrier’s home network. Aside from reducing complexity, this would make the home network and MVNO access available to all end users and eliminate the need to distinguish between home network and MVNO access users.

The Commission also determined that MVNO access would include all available GSM-based networks. That means 3G, 4G/LTE, 5G and beyond will be available to regional carriers. It also determined that MVNO access should support seamless hand-off to avoid dropped calls or service disruptions when users transition between networks.

Other decisions include denying provisions to restrict the resale of MVNO access service and to require regional carriers to compensate incumbents for inaccurate traffic forecasts. It also determined that MVNO access rates be open to renegotiation at least every two years, although parties can agree to different time frames if they choose.

The full decision is available here.

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Mobile Syrup

Federal government won’t intervene on CRTC’s MVNO ruling

The federal government won’t be weighing in on a decision forcing Bell, Telus, Rogers and SaskTel to sell network access to only some competitors.

The Canadian Radio-television and Telecommunications Commission (CRTC) made the ruling on April 15th, 2021.

The Commission stated regional wireless carriers who invested in network infrastructure and spectrum could use the larger companies’ networks if applicable.

Mobile virtual network operators (MVNO), operators without their own spectrum and infrastructure, were deemed ineligible. The decision left many smaller players disappointed.

Weeks later, Data on Tap Inc. petitioned the federal government to overturn the ruling. They wanted wholesale access from the dominant networks to be available to carriers without spectrum licenses. dotmobile, an operator run by the company, was the first in Canada to become a full MVNO.

But today’s decision upholds the CRTC’s original decision.

François-Philippe Champagne, Minister of Innovation, Science and Industry, said expanding MVNO access to providers without spectrum “would undermine the work of smaller regional providers that have already invested substantially to increase competition.”

“Based on this review, the Governor in Council has declined to vary the CRTC’s decision,” he continued.

Algis Akstinas, founder and CEO of Data on Tap Inc., told MobileSyrup the news is only a win for the Big Three “telecom lobbyists.”

“For Canadians this means continuing inequity and discrimination in the form of punitively designed wireless service and significantly higher effective prices for seniors, newcomers, students and families,” he said