The Canadian government said onMonday it was directing the country's telecommunications regulator to reconsider a recent decision it says excludes Wi-Fi-based providers from broadening their access via other companies.
Innovation Minister Navdeep Bains said in a speech adecision made by the Canadian Radio-television andTelecommunications Commission (CRTC) in March effectivelyprevents such providers from offering their low-cost plans.
The CRTC ruled then that wireless startup Sugar Mobile, anaffiliate of Ice Wireless, could not continue to use RogersCommunications Inc's network to keep customersconnected outside the reach of Sugar's wireless network.
The CRTC ruling said that Ice Wireless had improperlyallowed Sugar users to obtain permanent access to Rogers' cellnetwork. The regulator also said in a simultaneous decision thatmandated wholesale roaming agreements between companies provideincidental, not permanent, access to cell networks.
Critics said at the time the decision was a blow tolow-income Canadians. The system in which Wi-Fi is the firstpoint of online access can be cheaper than standard cell phoneservices.
Bains told the Canadian Telecom Summit in Toronto theWi-Fi-based model could benefit Canadian consumers, particularlythose who are less well-off.
"This lack of choice does not benefit Canadians," Bainssaid. "For this reason, I am directing the CRTC to rethink itsdecision and reconsider the Wi-Fi first model."
Bains said he was asking the regulator to launch a newexamination of the subject.
Shares of Rogers were little changed, recently trading atC$63.22.
Advocacy group OpenMedia said it was "excited" that the CRTCwill revisit the issue.
"Allowing smaller providers to enter the market will improveinnovation, encourage competitionand enable low-income Canadiansto participate more fully and meaningfully in our digitalsociety," OpenMedia's Katy Anderson said in a statement.
The government is also launching a public consultation onreleasing spectrum to support the development of fifthgeneration, or 5G, wireless networks, Bains said, though he didnot specify a timeline.
5G networks are expected to have higher speeds and morecapacity. The 5G market is expected to be worth C$36 billion.