Federal Court Denies Bell's Stay Request in Internet Competition Ruling

The Federal Court of Appeal has rejected BCE Inc.'s plea for a stay on a regulatory decision enabling independent companies to offer internet services to their customers through its fibre network in Ontario and Quebec.

The court's ruling, issued on Friday, followed Bell Canada's announcement of cutting 4,800 jobs and potentially reducing network spending, partly due to the CRTC's directive.

Coinciding with the beginning of the federal telecommunications regulator's review of internet competition in Canada, the court's decision upheld the CRTC's November mandate. This directive required major telephone companies, such as Bell and Telus Corp., to grant competitors access to their fibre-to-the-home (FTTH)networks within six months in Ontario and Quebec.

Bell sought an appeal of the CRTC's temporary ruling and requested a stay to postpone independent companies' access to its network for selling internet services, scheduled for May. However, the court rejected Bell's motion for a stay, citing a lack of demonstrated irreparable harm.

Bell expressed disappointment over the court's decision but welcomed the opportunity for an appeal. The company emphasized the negative impact of the CRTC's interim decision on its infrastructure.

While awaiting a decision from the federal cabinet, Bell has accused the CRTC of biased outcomes in its review process, arguing that the direction diminishes its incentive to expand its fibre network.

On the other hand, the Competition Bureau advocated for effective wholesale fibre access to promote competition in internet services. It urged the CRTC to update its wholesale access framework to provide independent carriers with access to essential networks, aiming to reduce competition asymmetry among incumbents.

John Lawford, executive director of the Public Interest Advocacy Centre, emphasized the regulator's obligation to achieve telecommunications policy objectives and resist the pressure from large carriers to prioritize their interests.

In summary, the Federal Court of Appeal's decision signifies a setback for Bell's efforts to delay the implementation of the CRTC's ruling, reflecting ongoing tensions between major carriers and regulatory efforts to foster competition in Canada's internet service market.