Last Monday, the CRTC gave interim approval to a Bell tariff for wholesale voice services: TN 7088 Wholesale Local Service and Features (WLSF).
The offering is designed to allow competitive service providers to resell primary local phone service to end-users.
WLSF thus provides resellers a mechanism to provide local service to end-users at competitive rates. In addition, WLSF service enables facilities-based providers to provide local service to end-users in areas beyond the reach of their network facilities.
While the rates do not appear to be particularly aggressive, there is a $50 reward being offered to the reseller for each line that is is won back from a competitor [Item 317 – 4(d)]. Competitors thus have an incentive to compete more for lines that have already switched off the Bell network.
As much as WLSF is described in the tariff notice as helping competitors, it may be more of a reflection of the new reality of aggressive displacement of traditional local phone service. Local telephony is under attack from cable companies and wireless substitution.
WLSF appears to be an attempt to use competitors as an alternate channel.
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