In an indication of the ongoing dysfunction of the Canadian regulatory environment, and the politicization of CRTC rulings, Bell Canada is appealing to the federal cabinet the CRTC’s decision that incumbents must open Internet connections to competitors, providing unimpeded access.

Just how bogged down is this process? The recent ruling restates a 2008 decision by the CRTC against Bell. Of course, Bell appealed that decision to the federal government. Result? Cabinet overturned the decision and ordered the CRTC to reconsider.

Bell claims to be “astonished” that the CRTC has returned the same decision, but no-one should be surprised. Like it or not, and agree with the laws of the land or not, the CRTC is a professional and, to the every extent possible, objective organization.

So, the fact that cabinet asked them to look at it again in no way assured that the CRTC would come up with a different ruling. Now, inevitably it seems, this has become a political issue. It will be interesting to see of cabinet has the cajones to stick by the CRTC this time, after having hung them out to dry on the Globalive/Orascom decision last year.

Cabinet now has 90 days to rule on the CRTC's finding, which means consumers are still waiting to see if there could be any impact on their bills or service.

Bell is arguing that the ruling makes it impossible for the company to generate the revenue and profits necessary for it to comply with mandated network build-outs. Effectively, Bell is being asked to do more with less, and crying foul.

The ruling says that Bell must open access between switching stations and homes, with a 10% premium allowed on wholesale rates to competitors. Given that Bell owns most of the lines into residences, it has been able to manage the DSL speeds, and rates, that it offers to its wholesale competitors.

The CRTC has said Bell is not allowed to “cap” speeds provided to wholesalers. In effect, after the 10% premium, Bell is being asked to compete in landline infrastructure that, many argue, was mostly put in place during the many decades when Bell had a secure monopoly.

It is almost certain that, should  the Conservative government uphold the CRTC decision, Canadians will receive higher speeds and lower monthly subscription costs. As well, this ruling will make the market far more appealing to new entrants, thus increasing competition.

Unbundling, in which incumbents are forced to actually relinquish control of switches and connection to homes, thus opening the market to all providers, could be next. But, given the rate of change in this country, the politicization of the issue, the power of the incumbents, and the impossible position that the CRTC is in, don’t expect action on this any time soon.