CRTC Wholesale Broadband Pricing Decision Threatens Canada’s Broadband Future
August 21 2019 - 8:00AM
Shaw Communications Inc. today said there will be long-term
negative consequences to Canadians from the CRTC’s decision to
dramatically reduce federally regulated wholesale broadband prices
charged to third party internet providers.
“We cannot understand the CRTC’s rationale for drastically
reducing the wholesale broadband rates available to third party
internet resellers,” said Brad Shaw, CEO of Shaw Communications.
“In time, this decision will be seen as short-sighted, and have
negative far-reaching consequences for consumers and for the future
investment required to build network capacity in all parts of
Canada.”
As a result of the reduced wholesale rates, which the CRTC
requires to be applied retroactively to January 2017, Shaw will
incur a one-time charge of approximately $10 million in its fourth
quarter results for fiscal 2019.
“While the CRTC appears to be trying to use the reseller market
as a primary source of broadband competition, it is ignoring the
fact that the resale model relies on the investments of
facilities-based providers like Shaw to create robust, fast and
reliable networks for the future,” Mr. Shaw said. “In light of the
decision, we are reviewing our future plans for capital expenditure
and network deployment.”
In its August 7, 2019 study of broadband competition in Canada,
the Competition Bureau noted that “facilities-based competitors
engage in a dynamic form of competition to successively introduce
better networks over time through investments in new technologies.”
Importantly, the study also noted “wholesale access regulation can
have a negative effect on the willingness of facilities-based
competitors to make the necessary investments to maintain and
evolve their networks.”
“At Shaw, the network investments that we have made in a
pro-competitive environment have allowed us to double the internet
speeds to our customers twice in the past year,” Mr. Shaw said.
“Unfortunately, the CRTC decision undermines the direction from the
government to expand broadband connectivity to all Canadians and to
make Canada a leader in the digital economy.”
About Shaw Communications Inc.Shaw
Communications Inc. is a leading Canadian connectivity company. The
Wireline division consists of Consumer and Business services.
Consumer serves residential customers with broadband Internet, Shaw
Go WiFi, video and digital phone. Business provides business
customers with Internet, data, WiFi, digital phone and video
services. The Wireless division provides wireless voice and LTE
data services through an expanding and improving mobile wireless
network infrastructure.
Shaw is traded on the Toronto and New York stock exchanges and
is included in the S&P/TSX 60 Index (Symbol: TSX - SJR.B,
SJR.PR.A, SJR.PR.B, NYSE – SJR, and TSXV – SJR.A). For more
information, please visit www.shaw.ca
For media inquiries, please contact: Shaw
Communications Inc. Chethan Lakshman, VP, External Affairs(403)
930-8448chethan.lakshman@sjrb.ca
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