Canada Can’t Build a Strong Economy Without Strong Broadband Networks

  • National Newswatch

The newly elected Liberal government came to office with a clear mandate: boost productivity, renew Canada’s economic competitiveness, and close the digital divide. 

To fulfil these promises, the government must create an environment where private companies can invest in strong fibre networks. Good fibre policy has the potential to build an economy that is more connected, more resilient, and more prosperous for all Canadians, no matter where they live. 

Yet a recent Canadian Radio-television and Telecommunications Commission (CRTC) decision on wholesale access moves Canada in the wrong direction. It permits well-capitalized companies like Telus to operate as resellers on their competitors' broadband networks, rather than build their own.

If allowed to stand, the CRTC decision will further undermine the incentive to invest, put jobs at risk, reduce long-term competition from small and regional providers, and stall rural connectivity – especially in areas where the economics of building fibre are already difficult. 

Canada’s geography is vast, and our population density is low. Extending high-speed broadband to rural, remote, and Indigenous communities – work Bell is actively doing – depends on a policy environment that encourages long-term capital investment by large players. Almost all internet service providers agree that the CRTC’s approach makes that model impossible. These are the hardest and most expensive areas to serve, and a policy that favours resale over new builds is slowing progress where it’s needed most.

For 145 years, Bell has built the communications infrastructure that powers communities, supports businesses, and creates jobs. Over the past five years alone, Bell has invested a historic $23 billion to deliver world-class 5G/5G+ wireless and pure fibre internet networks to millions of Canadian homes and businesses. With five million locations in our service area without fibre, our work isn’t over. That’s why Bell had committed billions more in future investments to expand our networks – from urban centres to suburban neighbourhoods to remote regions. Sadly, the CRTC’s decision that undermines the business case for investment, has forced us to scale back our planned fibre build. Future investments now hang in the balance.

The CRTC decision also puts small and regional internet service providers at risk. Allowing Canada’s largest telecommunications companies, including Telus, to resell each other’s networks reduces competition by squeezing out small and regional players that lack the scale and product offerings to compete with the national carriers’ product bundles. Over time, market consolidation will leave consumers with fewer affordable options. Ironically, a policy initially intended to expand access and competition for consumers will reduce both.

Beyond connectivity, this CRTC decision threatens Canada’s broader economic competitiveness. Every major sector – from manufacturing and mining to health care and education – relies on fast, reliable networks. The innovation economy we’re building demands continued investment in 5G and fibre networks, next-generation services and Artificial Intelligence (AI).

Launched in May, Bell AI Fabric is creating Canada’s largest AI compute project to deliver secure, reliable, and transformative AI solutions for government and businesses across Canada. These investments create jobs, fuel growth, protect data sovereignty, and support Canada’s digital resilience. If the CRTC stymies the ability of companies like Bell to continue investing in critical digital infrastructure, we won’t get better networks to power innovation and economic growth. We’ll get stagnation.

The CRTC operates under policy direction from government. The Department of Innovation, Science and Economic Development’s original guidance on wholesale fibre access was to create a framework that encouraged all forms of competition and investment and to reduce barriers to entry into the market for new, regional or smaller internet service providers. The CRTC’s decision jeopardizes that goal.

The CRTC would be wise to consider the current context. In today’s geopolitical and economic reality, where security, innovation, and resiliency are top priorities, Canada can’t afford policies that discourage private investment in critical infrastructure. Without investments in world-class networks, Canada will fall behind.

The federal Cabinet must act. Overturning this CRTC decision would reaffirm Canada’s commitment to growth, connectivity, and competition, on terms that reflect our geography and national priorities.

Learn more at bce.ca/build 

Robert Malcolmson - Executive Vice President and Chief Legal & Regulatory Officer, Bell