Aliant, the incumbent telco, and Groupe Telecom, the competing telco, bid for two school contracts in St. John’s, Newfoundland. Aliant offers a price lower than GT. GT complains to the CRTC, charging anti-competitive pricing. CRTC agrees, orders Aliant to increase its price above GT’s. Customer looks at GT’s now relatively lower price, and switches to GT. GT crows about fair pricing to customers.
Now Aliant owns all the wiring (after all, they built them). GT now complaining to CRTC that the wholesale rates Aliant is charging are too high. Wants Aliant to now lower their prices.
Says the Yankee Group: