SOURCE: Urban Communications Inc.

Urban Communications Inc.

July 27, 2015 16:16 ET

Urban Communications States CRTC Ruling on Shared Access to Fibre Networks is "Status Quo"

VANCOUVER, BC--(Marketwired - July 27, 2015) - Vancouver-based Urban Communications Inc. (TSX VENTURE: UBN) ("Urbanfibre"), one of the country's first telecommunications companies to deliver Gigabit Internet service to the home, praised the recent decision by the Canadian Radio-television and Telecommunications Commission ("CRTC") to guarantee shared access to fibre networks but noted it was primarily preserving the status quo.

Telecom Regulatory Policy CRTC 2015-326 announced On July 22, 2015, made rule changes regarding wholesale telecom services and the process and requirements for the incumbent carriers to share their networks with resellers.

The changes in policy mandate that the top tier carriers provide resellers with access to new fibre optic networks along with the existing copper-based networks that are already in place.

Ensuring shared access to fibre networks is good news for consumers as it means that they will continue to have a choice of service providers even as the need for next generation services over fibre outstrips the ability of copper networks to meet consumer needs.

However, Urbanfibre points out that this does not necessarily equal savings and product choice to the end-consumer; rather it maintains the status quo, a system wherein service offerings delivered to end consumers are established by the incumbents regardless if provided by the incumbent or a reseller. This ultimately allows a choice of vendor, but little to no variability in service and price.

It is only through independent service providers like Urbanfibre that own and operate their own fibre network that innovative and disruptive service and pricing models are being delivered to end consumers; Urbanfibre today delivers gigabit (1,000Mbps) Internet to households for $69/month, that is 40 times faster than the 25Mbps plans at an equivalent price point offered by the incumbents.

"We are very pleased to see the CRTC decide in favour of choice for the consumer," said Jon Paul Janze, VP Product at Urbanfibre. "While the rule changes do not substantially impact our business given that we own and operate our own fibre network, it is further evidence of the increasing demand for faster access speeds and next generation services that Urbanfibre already provides."

"Last week's CRTC decision illustrates that fibre-based networks are in high demand and are critical infrastructure for all Canadians," said John Farlinger, CEO at Urbanfibre. "Shared access to national fibre networks provides Urbanfibre with more flexibility as we expand and the value of our own network increases as the demand for fibre increases."

ABOUT URBAN COMMUNICATIONS INC.

Urban Communications Inc. (TSX VENTURE: UBN), through its operating subsidiaries, is a telecommunications company providing a full suite of Internet, voice, video and broadband application products over its state-of-the-art carrier grade fibre optic network to commercial, residential and public sector customers. The Company's fibre optic network covers 200 km across metro Vancouver and Victoria. Urban has recently launched high-speed Internet service to residential and commercial subscribers on its network at 1,000 Mbps (1 Gbps).

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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