Canadian Internet Policy Sparks Backlash
Canada’s internet market may get too competitive for small telecoms.
WASHINGTON, August 11, 2025 – Canada’s internet regulations are “nonsensical,” according to a Montreal-based telecommunications company.
Cogeco, which owns U.S. Internet service provider Breezeline, issued a formal statement condemning the Canadian federal government’s decision to uphold a Canadian Radio-television and Telecommunications Commission policy that allows major internet companies to deliver services using fiber networks built by their competitors.
"The Federal Cabinet's inaction is unacceptable," said Frédéric Perron, President and CEO of Cogeco. "It directly contradicts government efforts to promote sustainable competition and drive economic growth. The CRTC's current approach undermines choice and affordability, halting crucial innovation and investment vital for Canada's future. Unless corrected, this policy will have a detrimental impact on consumers and the broader Canadian economy."
The policy drew criticism not only from small ISPs like Cogeco, but also from large telecom companies. Bell, one of Canada’s “Big Three” telecoms alongside Rogers and Telus, also opposed the ruling, arguing it discourages investments for critical infrastructure.
Cogeco echoed these concerns, warning that the decision threatens the future of competition and innovation in Canada's internet market.
“The government's inaction stifles competition and investment in essential digital infrastructure by unfairly empowering the Big Three telecom players (Bell, Rogers, and Telus) to expand through regulation by reselling the networks of smaller regional players,” Cogeco stated. “This will lead to reduced consumer choice and stalled network investments.”
Former Federal Communications Commissioner Nathan Simington, who grew up in Saskatchewan, has also criticized Canada’s Internet competition framework.
“This country’s independent and regional ISPs face a serious threat: not from market forces, but from the unintended consequences of regulation,” Simington said.
However, not all major players opposed. Telus, another of the “Big Three,” applauded the move.
"It sends a strong signal to consumers, businesses and investors that the Canadian regulatory system is robust, transparent and effective in balancing the needs of stakeholders, and enabling government policy," Telus president and CEO Darren Entwistle stated.
Cogeco pledged to continue challenging the policy, including through an appeal to the Federal Court of Appeal.
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