Bell doesn’t want to share with Telus, cuts fibre expansion plans

Bell CEO Mirko Bibic said the company would scale back plans to build out its fibre network in response to the Canadian Radio-television and Telecommunications Commission’s (CRTC) decision to allow incumbents to resell each others’ fibre networks.

“To put it bluntly, we’re not in the business of building fibre for Telus’s benefit, and that’s what the CRTC policy that’s in place right now forces us to do,” Bibic said on the company’s Q4 earnings call.

According to the Canadian Press, Bibic said Bell no longer plans to meet its previous target of extending fibre to 8.3 million more homes by the end of 2025. He also said Bell would cut more capital spending this year.

“We will revisit our build out plan if the CRTC reverses its decision,” Bibic said.

The cuts come in response to the CRTC’s decision last week to allow incumbent telecom players like Bell and Telus to access fibre networks through the wholesale framework. Nearly all the players in Canadian telecom argued against the move, though Telus — which has already used the decision to roll out fibre home internet in Ontario and Quebec using Bell’s network — was in favour of incumbent access.

On February 4th, the CRTC said it would keep incumbent access, though it suggested it could change course when it releases a final review of the fibre wholesale framework in the summer. As part of its analysis, the CRTC said it found incumbent access didn’t demonstrate a “negative impact on investment.”

The wholesale framework was intended as a way to help smaller, independent internet service providers (ISPs) compete by allowing them to resell access to incumbent networks at mandated rates. While expanding the framework to include fibre networks was a win for ISPs, many raised concerns that allowing incumbents to access the framework could ultimately harm competition.

Currently, the fibre framework only covers Ontario and Quebec, but it’s set to expand to other regions on February 13th. When that happens, Bell will potentially be able to access Telus’ fibre network in Western Canada and resell service there, though it remains to be seen if Bell plans to go that route.

Bibic, however, didn’t seem interested in reselling opportunities, telling analysts who asked about it that the best competition comes from companies building their own infrastructure.

“We would always rather compete on the basis of networks we own. We want to build. We want to compete against other well-capitalized companies that build their own, and we’re prepared to do that here, obviously, in Canada, and we’re prepared to seize on the growth opportunities in the U.S.,” Bibic said.

Source: Canadian Press