Subscribers to one of Canadaâs more prominent independent Internet providers are getting a surprise holiday gift: Lower Internet bills, thanks to a ruling from Canadaâs telecom regulator earlier this year.
Customers of Ontario-based TekSavvy received emails from the company this week notifying them that their service will be upgraded and prices lowered as of Jan. 1.
The news was met with surprise and applause from its customers, of course.
â Steve Enns (@SteveEnns) December 19, 2016
Got an email from @TekSavvyBuzz informing me that my connection speed is going UP while my bill is going DOWN. WHAT IS HAPPENING!?
â Ted Rouse (@takedanger) December 19, 2016
âThis is one of the largest price drops weâve ever seen,â TekSavvy CEO Marc Gaudrault told MobileSyrup. âWe are making changes for virtually our entire customer base.â
The changes are the result of a ruling by the CRTC in October that required the big telecoms to reduce the prices they charge to Internet âresellersâ who rent space on the big companiesâ networks.
The big telcosâ rates âwere not just and reasonable and had to be revised downwards,â the watchdog said in its ruling.
âThe CRTC is very concerned that certain large companies have not conducted their cost studies in accordance with well-established costing principles and methodologies.â
CRTC chair Jean-Pierre Blais criticized the large telecoms this fall for inflating the cost of wholesale access to their networks. (Photo: The Canadian Press)
TekSavvy and other resellers like Distributel and are now paying up to 89 per cent less to access the big telcosâ networks, and up to 39 per cent less for bandwidth.
But the new pricing may not last. The CRTCâs decision is an interim one, and a final decision is expected by next summer.
In its October ruling, the CRTC sided with resellersâ arguments that the prices big telcos were charging them were in effect reducing competition in the market.
âCanadiansâ access to a choice of broadband Internet services would have been at stake had we not revised these rates,â CRTC chairperson Jean-Pierre Blais said in a statement.