Shaw Cablesystems, Canada's second largest cable and Internet service provider, filed a petition asking the Canadian Radio-television and Telecommunications Commission (CRTC) to order a stop to anti-competitive pricing of DSL. Shaw is especially concerned about aggressive DSL promotional packages from Telus in Alberta and British Columbia. Shaw contends that Telus' "predatory pricing practices" could significantly reduce competition in the Internet access market in western Canada. Shaw specifically asks the CRTC to forbid Telus from offering Internet promotional pricing at below-cost rates for periods in excess of three months. It also asks that the CRTC prevent Telus from offering competitive service bundles that include local telephone service in contravention of CRTC regulations.
In its filing, Shaw noted the following comparison:
- Shaw charges a regular retail rate of $42.95 (Canadian) for its high-speed Internet service, including the lease of a cable modem. Customers who own a cable modem are charged $37.95 per month
- The regular retail rate of Telus high-speed Internet service is $42.95 (Canadian), or 37.95 per month when the customer owns a DSL modem. The price is further reduced by $3 per month if the customer also subscribes to Telus Long Distance service.
- Since May 2003, Telus has been offering DSL promotional packages as low as $16.95 per month for six months, followed by a rate of $24.95 per month thereafter.
- Telus has over 95% of the local residential phone market in Alberta and British Columbia.
