Cheaper 8Gbps internet plans could soon head your way

Your local independent internet service provider (ISP) might soon offer crazy fast 8Gbps fibre internet speeds for less, thanks in part to Bell.

After the Montreal-based national telecom launched its 8Gbps fibre internet plans earlier this year, it filed an application with the Canadian Radio-television and Telecommunications Commission (CRTC) to offer an 8Gbps speed tier for wholesale services, and the Commission has now approved the application on an interim basis.

As a quick refresher, the CRTC mandates incumbent ISPs, like Bell, Telus, and Rogers, to offer wholesale access to their networks to smaller ISPs so they can resell internet service and bolster competition. The Commission also sets the rates ISPs pay to access wholesale service.

Currently, the CRTC has approved interim wholesale access rates up to 3Gbps for Bell, but according to a recent order from the Commission, Bell proposed charging the same wholesale rates for the faster 8Gbps speed.

Notably, the new interim 8Gbps wholesale rates are subject to an ongoing review of the wholesale high-speed access framework, so things could change in the future.

How much could 8Gbps internet cost?
For now, the interim rates fall into two categories: gateway access service (GAS) or disaggregated broadband service (DBS). The differences between the two matter more for ISPs using the wholesale framework, but they do have different wholesale rates that could impact the final cost customers pay. GAS has a service charge for site visits (such as service installation) of $244.13, and a monthly access rate of $78.03, while DBS has a service charge of $247.90 and a monthly access rate of $121.79.

While it’s hard to say exactly how much customers will have to pay based on the wholesale rates alone, we can get a rough idea by comparing current in-market plans and wholesale rates. For example, Bell’s current wholesale rate for fibre plans up to 1.5Gbps is $68.94 in Ontario and Quebec. Below are the prices some ISPs charge for 1.5Gbps fibre plans:

Bell: $110/mo on a two-year term, or $135/mo with no term and no other discounts or promotional offers.
Telus: $79/mo on a two-year term, or $130/mo with no term, discounts, or promotional offers.
TekSavvy: $89.95/mo for 12 months, regular $119.95/mo.

1.5Gbps fibre internet plans from Bell (top left), Telus (top right), and TekSavvy (bottom).

A few disclaimers about the above numbers. First, prices can vary by location — I’m based in Hamilton, Ont., so I’m seeing pricing for that region, but prices could look different in other places. Additionally, I’m not sure whether TekSavvy is using Bell wholesale, but considering Rogers doesn’t offer wireline internet to where I live, and Bell does, it seems likely TekSavvy’s 1.5Gbps fibre plan is using Bell’s infrastructure. Regarding Telus, we do know it’s using Bell infrastructure for its wholesale efforts in Ontario.

All that said, it looks like customers can expect monthly pricing roughly $10-$20 more than the wholesale rate, at least during initial promotional periods, so I’d expect any ISPs that launch 8Gbps plans using Bell’s rate to charge somewhere in the ballpark of $88-$98 per month (though there’s no guarantee we’ll see those prices). That’s quite a bit cheaper than Bell’s current $160/mo price for its 8Gbps plan.

That said, it remains to be seen if any ISPs will actually offer plans at that speed. As mentioned above, the 8Gbps rate was set at the same rate as the 3Gbps rate, but outside of Bell’s plan, I wasn’t able to find any 3Gbps plans from other providers.

Regardless, the foundation is there for more ISPs to start offering 8Gbps speeds. Here’s hoping we’ll start to see those plans soon.

Source: CRTC

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