Review Telecom Act, government role in e-economy, former Industry minister urges

The Telecommunications Act should be reviewed after more than a decade in effect to ensure that the government continues to play a strong role in the distribution of benefits from the Internet-based economy, says former Minister of Industry Canada John Manley. The government still has a critical role to play, and revisting how the country’s communications infrastructure providers are regulated should be on Ottawa’s agenda, Manley tells Report on Wireless. "Part of that (role) is the meat and potatoes of government, which continues to have an important regulatory role that affects both cable (companies) and telcos. I think it’s now 11 years since we’ve passed the Telecommunications Act, it’s probably time to look at that again. "I don’t know what changes need to be made, but I suspect that with all the change we’ve had, it’s time for a really thorough look at that," Manley tells RoW. The government has a broad leadership role to play in bringing the benefits of innovation and the information economy to businesses of all sizes, says Manley. Today, the focus is less on basic access than it is about convincing and demonstrating to SMEs the full benefits of Internet-based communications technologies on business processes, he adds. "I always felt that where we complemented the private sector was in how to develop strategies to get the benefits of information technology into rural and remote communities and communities that were otherwise not likely to be (served)," Manley explains. Infrastructure is key, and the challenge will be to best use the government’s resources. "In other words, not how you take on some of the necessary burdens that the private sector should be bearing, but how you make sure the benefits get extended to areas where the business case is not there yet and do it rapidly enough. We focused, in my time (as minister), to a great degree on the North and on Aboriginal communities and to some extent on rural and remote, but I think with broadband it is becoming more imperative," Manley tells RoW. But, Manley says, the sector needs a champion, and he feels new industry minister David Emerson is an ideal candidate. "I’d like nothing better than to see Mr. Emerson decide that he wants to be a champion of this sector. I certainly don’t believe that we did it all…I think there’s a huge opportunity here for leadership and I hope that he takes it on. I’m not at the point where I can prescribe what the solutions are, but (the sector) still needs a champion and I think the Canadian Minister of Industry is the ideal person to do that." Canada lags behind U.S. in ICT adoptionThe former Industry Canada minister’s comments come at a time when private sector leaders are struggling with finding ways to make sure the Canadian economy remains competitive with that of our neighbours south of the border. Some say this can only be handled at the federal level and that it should become a priority for the government. It is widely recognized that the adoption and implementation of Internet-based services and applications helps companies decrease costs, improve profitability and increase productivity. Figures released by the Canadian e-Business Initiative (CeBI) demonstrate that Canadian small businesses that have implemented Internet business solutions (IBS), have been able to achieve considerable cost savings resulting in higher profits. "… A typical firm adopting advanced e-business solutions could increase profits by 150 percent, after increases in revenue and decreases in cost brought about by the transformation of business processes," reads Net Impact Study: The SME Experience. The report was released on September 22 along with an accompanying study titled Fast Forward 5.0: Making Connectivity Work for Canada. While the benefits of adopting Internet-based business processes is made obvious in the two studies, SME adoption of IBS, especially those in the manufacturing, wholesale and retail sectors, trails by a large percentage American adoption of information and communications technologies (ICT), the reports find. The CeBI studies laud the efforts undertaken by federal and provincial governments to bring broadband connectivity to as many Canadians as possible, but they say that isn’t enough. The government must move beyond the simple connectedness agenda and set a new ambitious plan. "To enable Canada to grow aggressively as a global leader and innovator in ICT development and use, governments must lead by example, becoming model users of ICTs for improved delivery of services through initiatives such as Government Online," reads Fast Forward.

Review Telecom Act, government role in e-economy, former Industry minister urges

News | October 5, 2004

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