The Financial Post reports in its Saturday edition that the CRTC's decision to axe wholesale rates for high-speed Internet could hurt the bottom line for Canada big telcos, but ultimately result in lower prices and more choice for consumers, analysts say.
The Post's Emily Jackson writes that the regulator substantially lowered rates that the major providers can charge independent Internet service providers for wholesale access to their high-speed networks, calling their lack of respect for established costing methods "very disturbing" and their proposed rate hikes "unreasonable."
Smaller competitors such as Distributel and TekSavvy are expected to eventually cut their prices, sparking price competition that could put pressure on incumbents such as BCE, Rogers Communications and Telus, according to analysts.
That could spell trouble for large providers since Internet price increases have helped offset the erosion in cash from the shrinking number of home phone and TV subscribers, Desjardins Capital Markets analyst Maher Yaghi wrote in a note Friday.
RBC Capital Markets analyst Drew McReynolds, wrote to clients that the decision is "not a game changer, but visibility on wireline revenue growth gets tougher."
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