Primus Telecommunications Canada Inc.

Primus Telecommunications Canada Inc.

December 04, 2014 12:00 ET

CRTC Hearing: Important Implications for Canadians on Internet Price and Choices

Hearing Outcome Could Fundamentally Change the Internet Services Landscape

OTTAWA, ONTARIO--(Marketwired - Dec. 4, 2014) - A CRTC hearing completed this week could have significant impacts on the value and price of Internet packages available to Canadian consumers and to Canadians' ability to compete in the digital economy.

"This hearing provides the opportunity to protect and enhance the country's competitive landscape in terms of how Internet providers offer services to Canadian consumers and small businesses," said Michael Nowlan, CEO of Primus Telecommunications Canada (Primus), after the company made its submission to the hearing.

The hearing was prompted by the rapid pace of changing technology causing shifting consumer demands, resulting in the need for a regulatory update.

Nowlan said the hearing hasn't drawn the attention that this year's two earlier CRTC hearings, on wireless and broadcast, received and that means Canadian consumers and small businesses might not realize what's at stake.

"For people at home who stream Netflix, who work on Wi-Fi at the coffee shop on their smartphone or computer, and many others in small business, these are critical issues," Nowlan said. "We really need to focus on bringing more freedom of choice, innovation and lower prices to consumers."

One of several important issues the hearing considered is the "bundling" of wholesale services by the big telephone and cable companies, requiring companies like Primus to purchase an entire package of Internet access technology when all the elements are not required.

"We are looking to 'unbundle' the wholesale services provided by the big telephone and cable companies so that we can give consumers more choice, better packages and lower prices," concluded Nowlan.

Other issues of concern heard at the hearing included the notion of a duopolistic or monopolistic supply of fiber to the premise (FTTP) as a direct threat to the ability to provide consumers and businesses fair prices and to the ability of Canadians to innovate and participate fully in the global digital economy. The Government of Canada has already acknowledged that in wireless, domination by three companies has failed to provide Canadian consumers with competition.

About Primus Telecommunications Canada Inc.

Primus Telecommunications Canada Inc. is the largest alternative telecommunications service provider in Canada. Primus offers a wide selection of consumer and business telecommunications services available nationwide including Home Phone, Internet, Long Distance, VoIP, Enterprise IP Voice Solutions, Hosted Phone Systems (Hosted PBX), Dedicated Data Access and IP connectivity solutions. In the United States, Primus provides reliable and affordable digital home phone (VoIP) service under the Lingo brand. Acquired by York Capital Management in July 2013, Primus Canada was founded in 1997 and has over 600 employees located in offices across Canada including Vancouver, Toronto, Ottawa, London and Edmundston. For further information, visit primus.ca.

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