Canada has what it takes to maintain its leadership position in communications

Canada is a world leader when it comes to communications, both on the equipment side and on service provision. But can Canada maintain that leadership position in today’s economy and secure itself the same fate in the years and decades ahead? BCE chief executive Jean Monty gave his answer to that question during a speech to the Canadian Club on September 17. The following is an edited excerpt of his address. Does Canada have what it takes to sustain a leadership position in communications? Can we build an even stronger domestic industry from which we can succeed globally? I believe the answer is an emphatic yes — if we can sustain and nurture the leadership we have already achieved. One of the key reasons for Canada’s success in this sector is the balance that was struck a long time ago between regulators and industry leaders, between the public good and private interests. None of this happened by accident. Rather, it flowed directly from a balanced policy and regulatory framework … one that resulted in the world’s greatest access to services, at some of the lowest prices.However, the current framework — confronted with the new challenges of the Internet, convergence and globalization — may not ensure that we remain at the forefront of a changing global communications industry. But what can replace it? Perhaps it’s time to consider a new approach, one that must still be based on the objective of balance because it has served us well. First principle: focus on the long term. As the dot-com debacle has shown, we must look beyond today’s headlines to the underlying forces. Let’s focus on Canada’s long-term prosperity and interests in an Internet economy. We believe all Canadians should have access to some form of high-speed Internet connection in the long-term. And, let’s have clarity and consistency in the policy framework that emerges. Let’s not propose short-term fixes to support some industry players in the name of competition, when in fact these fixes, which are in effect subsidies, would only serve to distort long-term competitive structures. Second principle: focus on the results. Success will be determined by balancing price and access, in traditional and emerging communication services. We want affordable prices and we want investment. We believe that a healthy competitive industry structure is the way to achieve this in the long term. To get these results, prices for basic local services should not be artificially driven any lower than they already are — since Canada’s prices are already among the lowest in the world and in certain instances significantly less than our American neighbours. To encourage competition, we should provide access to our networks. Already we have the best, most open competitive regime in the world with our competitors paying much less than in the U.S., for example, to originate and terminate their calls on our network. Third principle: promote innovation. In other words, Canada must continue to reward the creativity that made us leaders in the first place. And the best way to encourage innovation is by ensuring that the industry remains an attractive investment as a result of a healthy and competitive marketplace. But, while innovation is essential, it does cost money — and lots of it. R&D is capital-intensive and carries significant risk. And so, while our industry must innovate, it must also have a framework that allows us to raise the capital needed to do so. Canada’s low communications prices carry a double edge. Consumers and businesses benefit greatly, in the short-term at least, but in the long-term we have to be concerned about maintaining our industry’s ability to attract more capital. A balanced approach will ensure that Canada’s communications industry will attract capital to fuel innovation; will continue to deliver the best services at the lowest prices; will build scale to compete globally; and will ensure our competitiveness in this strategic sector.

Canada has what it takes to maintain its leadership position in communications

News | 09/18/2001 4:00 am EDT

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