Home Internet Vidéotron asks Competition Bureau to investigate Bell’s alleged margin squeeze of internet competitors

Vidéotron asks Competition Bureau to investigate Bell’s alleged margin squeeze of internet competitors

Vidéotron has filed two complaints against Bell with the Competition Bureau, MobileSyrup has learned.

One of the complaints from the Québecor subsidiary also involves VMedia, which the company acquired in 2022.

They allege Bell is charging resellers higher rates to use its fibre-to-the-premises (FTTP) network while selling access to customers directly at a lower price to hold market dominance and oust competition.

MobileSyrup has reviewed the complaint, sent from a source close to the matter.

Vidéotron says the action goes against the objective of the Canadian Radio-television and Telecommunications Commission’s(CRTC) November 6th interim decision to increase internet competition.

The decision gave Bell and Telus until May 7th to offer competitors access to its FTTP network at new wholesale rates in Ontario and Québec, two provinces that saw a decrease in independent internet competition. The decision led Bell to cut $1 billion in capital expenditures in 2024 and 2025. The decision was part of a larger review the commission launched in March.

The wholesale rates for the two providers were based on information Bell and Telus supplied to the CRTC. The complaint states Bell presented information to maximize the interim wholesale rates that resellers would pay.

While the CRTC approved Bell’s interim wholesale rate as $68.94 for speeds between 25-30Mb in November, the Montreal-based provider is offering the service for $50/month for 24 months in Québec. This is much lower than the $106.73 Bell asked the CRTC to set as the interim rate, citing costs, the complaint notes.

It also points to VMedia’s cost to enter the market in Toronto’s Adelaide area.  The company requested FTTP services access under the approved rate of $121.79 per month. Comparatively, Bell offers the area internet speeds at $50/month, forcing VMedia to offer services at $45/month, leading to a net loss of $1,100 per customer each year.

Vidéotron says these details show Bell holds a dominant position in regional markets, especially in Ontario and Québec and wants the bureau to investigate the matter.

The second complaint concerns competition in the business sector. Like the first complaint, Vidéotron alleges Bell is imposing higher rates to use its network, preventing customers from accessing the network.

MobileSyrup reached out to both Québecor and Bell for statements but did not hear back at the time of publication.

Image credit: Shutterstock 


 

Reference

Denial of responsibility! TechCodex is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
DMCA compliant image

Leave a Comment