Bell Canada recently made the decision to cut 4,800 jobs and sell 45 radio stations in an effort to save money. This move is expected to bring back $150 to $200 million for the company.
In addition to the job cuts and station sales, Bell also announced that it will cap fibre internet speeds at 3 Gbps. The company attributes this policy change to the CRTC’s wholesale access rate decision from last fall, which it claims “discourages network investment.”
Previously, in September 2022, Bell had announced its Fibe Gigabit 8.0 service in Toronto, offering speeds of 3 Gbps and 5 Gbps. However, the company will no longer offer speeds beyond 3 Gbps as part of its plan to reduce capital investment.
A letter sent by Philippe Gauvin, Assistant General Counsel for Bell Canada, to Leila Wright, Executive Director of Telecommunications at the CRTC explains the company’s decision. Gauvin stated that the lack of wholesale customers at speeds of 5 Gbps and 8 Gbps led them to cap speeds at 3 Gbps.
The letter was also sent to several other recipients including individuals from CRTC and various telecom companies. In Q4 2023, Bell reported cutting back its capital investment by $105 billion more than expected from its previous announcement in fall. This reduction is part of a plan to slash costs by $500-600 million in 2024 and $1 billion in 2024-2025.
It’s important for us at Phones Canada to keep you informed about changes within the telecommunications industry. Stay tuned for more updates on how these decisions may impact you as a consumer.
