Government assistance needed but limits need to be set, telecom conference told

The various government departments and agencies that affect the workings of the telecommunications sector should work towards improving the situation for the industry without being too intrusive, a recent conference was told. That was the message from three communications industry executives at a session of the Canadian chapter of the International Institute of Communications meeting in Ottawa earlier this month.The panel examined the issue of infrastructure providers’ contribution to the nation’s innovation agenda. Pierre Blouin, group president of consumer markets for Bell Canada, called on the federal government to improve the tax laws for investment. He pointed out that the ICT sector represents 46% of industrial R&D in Canada and contributes $54 billion to national GDP. Moderator Mike Ryan of the Arnold & Porter law firm asked the participants about the prospect of liberalizing foreign ownership limits. The COO of Rogers Cable Inc. was enthusiastic about changes to the regime. "Bring it on," Dean MacDonald said. Blouin referred to Bell’s application for symmetrical regulation, which is currently before the CRTC (NL, Nov. 10/03), as a way to improve the operating environment for communications companies. George Cope, president and CEO of Telus Mobility, wondered if the marketplace wasn’t changing the rules without government action. "I don’t believe the ILECs have the pricing power people think they do," he stated. "It still has market power but the market power it had yesterday isn’t there today and it won’t be there tomorrow." Cope and Chris Peirce, senior VP regulatory and government affairs for Allstream Corp., got into a lively discussion during the question period. Peirce pointed out that half of the respondents in a recent Decima Research-Bell Canada survey on consumer trends in communications (NL, Oct. 15/03) said they would not abandon wireline telephony for wireless phones. "That means 50% of the market is prepared to shift," Cope countered.Much of the discussion revolved around broadband deployment. MacDonald said high-speed Internet is available to 90% of the homes that are passed by cable. When one delegate opined that Canada is a long way from a competitive rural market in wireline and broadband, the Rogers COO replied that he thought small communities were well served. Blouin touted Bell Canada’s new proposal to roll out DSL in smaller communities in Ontario and Quebec using funds set aside in its deferral account (NL, Dec. 8/03). Access to the network would be made available to competitors, he reminded the audience. One delegate tried to impress upon him the necessity of rolling out broadband. "If communities can’t participate in the economy, they become a drag on the economy," telecom consultant Lis Angus remarked.

Government assistance needed but limits need to be set, telecom conference told

News | December 22, 2003

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Government assistance needed but limits need to be set, telecom conference told

News | December 22, 2003

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