Danger: falling prices

CRTCIn a joint Broadcast and Telecom Decision, The CRTC rejected an application by Maskatel and Telephone Drummond that asked the CRTC to discipline Cogeco for offering services at too low a price.

They argued that Cogeco’s pricing initiatives, targeting customers in Saint-Hyacinthe and Drummondville, were unjust.

But, the CRTC was not about to issue a decision ordering Cogeco to raise consumer prices.

The Commission found that there may indeed be discrimination, but it is not unjust – rather, it is a normal competitive market response.

The Commission remains of the view that, as noted in several previous decisions, competition among distributors, along with end-user choice for consumers, can contribute to the achievement of a number of the objectives of the Broadcasting Act. Among other things, competition can contribute to the affordability of service by encouraging distributors to reduce subscription rates for end-users in their attempts to obtain subscribers.

Competition is working. Prices are coming down. Hopefully, industry participants can get used to that.

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