FOR IMMEDIATE RELEASE

TekSavvy welcomes Minister of Industry Clement's review of anti-competitive CRTC decisions on Internet service

February 2nd, 2011. Chatham, Ontario.

 TekSavvy Solutions Inc., one of Canada’ s leading independent Internet service providers, welcomes Minister of Industry Tony Clement’s prompt response to recent decisions by the CRTC that threaten to constrain Canadians’ access to the Internet. These unfortunate regulatory developments, including the imposition of usage based billing (UBB) on companies like TekSavvy, threaten to eliminate competition in the provision of Internet service to Canadian consumers, radically increase the cost of Internet usage and frustrate the objectives of the government’s Digital Economy Initiative.

“Minister Clement’s timely attention to this crisis underscores the importance of robust competition in providing Internet service to Canadians,” said Rocky Gaudrault, President and CEO of TekSavvy. “Without competition, Internet service will be controlled by the duopoly of telecom and cable, which will be in the position to dictate (i) unjustifiably high pricing (ii) access to content and (iii) the speed of innovation in this essential service.”

Dominated by the duopoly, Canada is quickly sliding down the list among industrialized countries in quality of Internet service, while being at the top of the list of most expensive markets. Further concentration of pricing power and gatekeeping of content in the hands of the duopoly will set Canada back even more, losing more ground in pricing and innovation.

The CRTC’s decisions mean Canadians will face exorbitant Internet service fees, forcing them to consume their entertainment content on legacy conventional TV platforms, which are becoming increasingly concentrated in the hands of the duopoly as well. For example, Bell is in the process of buying CTV.

“We have all along been strongly supportive of the government’s focus on competition as a driver of innovation, entrepreneurship and fair pricing. This regression is unique in the industrialized world, “Mr. Gaudrault explained. “This kind of Canada is only advantageous to duopoly shareholders.” 

In October, the CRTC gave Bell the go-ahead to impose UBB on its wholesale customers and released the harsh terms of its implementation in January.

For more information, please contact:

media.relations@teksavvy.ca