Distributel is the latest independent internet provider to increase prices

Following TekSavvy and Start.ca, Distributel became yet another independent internet service provider (ISP) to raise its subscription fees due to uncertainties around the Canadian Radio and Telecommunication Commission’s (CRTC) wholesale pricing.

Distributel, which chiefly provides cable internet service over the backbones of Rogers, Videotron, Cogeco and Shaw, announced yesterday that its customers should expect a CA$5 to CA$10 surcharge to their monthly bill.

Related:

Suspended CRTC wholesale internet price gets the nod from Bell, but reseller ISP warns of higher subscription costs

 

In a statement, Distributel criticized the incumbent service providers for challenging CRTC’s wholesale pricing, and the Cabinet for rejecting CRTC’s original rate without presenting new evidence.

“The government could have simply allowed the CRTC to proceed with its own review,” said Matt Stein, chief executive officer of Distributel. “But by inserting this extra commentary, it’s created more confusion and uncertainty. What’s more, this runs counter to the government’s campaign promises of making life more affordable and helping working Canadians get ahead. Keeping prices high is simply bad for Canadians.”

TekSavvy, Start.ca, and Distributel service over 570,000 Canadians collectively, all of whom could potentially face higher monthly internet bills.

Similar to many other independent ISPs, Distributel lowered its prices when CRTC announced its new wholesale price in August 2019. After numerous petitions from incumbents, the pricing has suspended by the Federal Court since September 2019.

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Jim Love, Chief Content Officer, IT World Canada

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Tom Li
Tom Li
Telecommunication and consumer hardware are Tom's main beats at IT Business. He loves to talk about Canada's network infrastructure, semiconductor products, and of course, anything hot and new in the consumer technology space. You'll also occasionally see his name appended to articles on cloud, security, and SaaS-related news. If you're ever up for a lengthy discussion about the nuances of each of the above sectors or have an upcoming product that people will love, feel free to drop him a line at tli@itwc.ca.

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