TORONTO — Canada's telecom regulator has denied a small mobile service provider the right to continue permanently piggybacking on infrastructure set up by Rogers Communications.
In a ruling issued Wednesday, the CRTC issued restrictions on how heavily customers of Sugar Mobile, which doesn't have its own wireless infrastructure, can rely on Rogers's wireless network.
Sugar Mobile's sister company, Ice Wireless, has its own infrastructure in Canada's three territories. Ice Wireless has a roaming agreement with Rogers that allows its customers to use the telecom giant's network when travelling to other areas. Likewise, Rogers's customers can use the Ice Wireless infrastructure when visiting northern Canada.
Ice Wireless allowed Sugar Mobile to use its network in northern Canada.
Sugar Mobile, which offers cheaper wireless services using Wi-Fi and mobile roaming, piggybacked on Rogers's network through its agreement with Ice Wireless.
However, while Sugar Mobile gave customers SIM cards embedded with a northern Canada 867 area code, it also allowed them to choose a phone number with any Canadian area code that people could dial to reach them.
That means a Torontonian, for example, could sign up with Sugar Mobile and choose a phone number with a 416 area code and their cellphone service would use Wi-Fi access in the city and Rogers's network.
Since under such an arrangement, Sugar Mobile customers don't access Ice Wireless's home network located in northern Canada, the CRTC ruled Rogers is not required to continue granting Sugar Mobile customers permanent access to its network.
Ice Wireless has 50 days to stop Sugar Mobile from using the Rogers network in this way before Rogers can block Sugar Mobile customers.
Rogers is pleased with the decision, said David Watt, senior vice-president of regulatory affairs in a statement.
"We believe in innovation and a fair, competitive market — this was about violating a roaming agreement, plain and simple."
Sugar Mobile called the decision disappointing, saying its customers make very limited use of Rogers's network.
"Our technology means customers are using Wi-Fi more than 90 per cent of the time and on the Rogers network less than 10 per cent," CEO Samar Bishay said in a statement.
He said the ruling is a blow to competition in the mobile wireless industry and Canadians who pay high prices for wireless services. Bishay said the company will review the ruling before deciding on any next steps.
OpenMedia, a consumer advocacy group, agreed the decision will likely keep cellphone plan prices high for Canadians.
"Blocking new providers effectively gives the Big Three a licence to price-gouge consumers who are left with no alternative to their expensive plans," Katy Anderson, the group's digital rights specialist, said in a statement.
The CRTC released a second decision simultaneously, reiterating its stance that wholesale roaming can not be used as a way to get permanent access to a telecom company's network.
National carriers are not required to give independent service providers permanent access to their networks, but can negotiate such agreements if they choose.
The CRTC expects later this year to announce final rates for what the major carriers must charge smaller companies for wholesale roaming access. It set interim rates in October that were mostly lower than what many of the big telcos wanted to charge.
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Aleksandra Sagan, The Canadian Press
