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CRTC Requires More Transparency in Wholesale Telecoms Rates
Published on:
The Canadian Radio-television and Telecommunications Commission (CRTC) announced that in the future large telephone and cable companies will have to make more information public when proposing rates for wholesale services.
"Smaller companies offer competitive and innovative choices to Canadians, by using access they have purchased at wholesale prices from the large companies," said Jean-Pierre Blais, Chairman of the CRTC. "Today's guidelines will increase transparency and allow Canadians to better understand how we establish wholesale rates."
Rates for wholesale services are based on the cost of providing the service plus an allowable markup. Markups contribute to costs that have not been accounted for, such as corporate overheads and past network investments.
Once companies submit their costs and proposed rates to the CRTC, that information is made public. With this additional data, interested parties will be able to provide a more informed analysis.
Companies will continue to have the right to protect competitively sensitive information, and other parties can continue to request disclosure of any such information. The CRTC will rule on any disclosure requests using the new guidelines.
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