Washington-based trade association helps Canadian utilities move into telecom market

After years of talking and little action, Canadian utilities are turning to their American counterparts for help in cracking the telecommunications market. The first step in this new alliance will see the Washington-based United Telecom Council (UTC) creating two Canadian divisions in a trade association for utilities that view telecommunications as a lucrative ancillary business. "Canadian companies, like all non-U.S. companies, have been part of our international division," William Moroney, president and CEO of the UTC told Network Letter. "What we are proposing to do is essentially turn UTC from being a U.S. core entity into a North American core entity." Industry representatives met to discuss the plan in greater detail at a UTC-organized conference on utilities and telecommunications, held October 3-5 in Toronto. More than 100 delegates attended the event, which served as an introduction to the telecom market, including lessons learned from the American experience. Utility companies in the U.S. have moved far more quickly into telecommunications than their Canadian counterparts. By 1997, American power companies had begun laying thousands of miles of dark fibre and providing local telecommunications access, either on their own or in partnership with other telecom companies or cable operators. Canadian utilities have been slower to act. Last year, Hydro-Québec and Bell Canada created a new company to manage internal LANs for business (NL, Feb. 1/99). In May, Ontario Hydro’s telecom division Hydro One Telecom Inc took its first high profile step into this market with the launch of a new billing service that helps its customers shop for the best price for a variety of services, including telecommunications. But these are small moves when you consider the potential that exists for utility companies to leverage their rights of way, installed infrastructure and customer base to begin offering a range of telecom services, including local telephony. That’s why the alliance with the UTC is considered so important. The association has spent the last half century helping various utility firms work through the maze of telecom regulation and other issues. Primarily an American organization, it does service companies from other countries through its international bureau. Up until now, Canadian firms have been part of that section, although that may change. "About a year and half ago we started a discussion with our Canadian members about what more we could be doing up here," says Moroney. "One of our principal services is regulatory support. It’s very focused on the U.S. government. Could we represent that same level of service or something comparable in Canada for Canadian companies? After listening to a large number of companies the answer is yes, they want us to." What lies ahead Murray Matiowsky, manager of communications for Manitoba Hydro and a member of UTC, says he was impressed by the response shown by those attending the conference. He expects a proposal will be made to create two new regions for the UTC to augment the 10 sections that currently serve the American market.Moroney agrees. "I think what will probably end up happening is the creation of two Canadian organizations, one for eastern Canada, one for western Canada," he says. A separate public policy branch, handling Canadian issues, is likely to be set up. UTC chair Stephen Carrico from the Wisconsin Public Service Corp told the session the UTC board will be holding its semi-annual meeting later this month in Washington. "I want to move forward with this proposal," he said to enthusiastic response. While the UTC tried to teach Canadian utilities about the telecom market, the education was a two-way street. "The whole purpose of this conference was to put on a conference that was oriented toward Canadian issues and for the UTC to listen and come up with a solution that suits Canada," Moroney noted. One of the primary issues that intrigued the lobby group is the matter of rights of way. Delegate after delegate raised the matter in formal sessions as well as in informal discussions in the hallways. It was obvious to any observer that the topic is as important to utilities as it is to telcos. A Canadian section of the UTC, if created, will also have to concern itself with the many levels of jurisdiction in this country. Rights of way are a municipal issue, utilities are provincially regulated while telecommunications carriers are the jurisdiction of the CRTC and the Telecommunications Act. Winding its way through the maze will be a challenge for the new group. Carrico, Moroney and Matiowsky have begun discussions within the organization regarding regulatory counsel. The question of hiring its own lawyers or employing outside counsel will be addressed within the next few weeks.

Washington-based trade association helps Canadian utilities move into telecom market

News | 10/11/2000 4:00 am EDT

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