Canadians support federal government’s telephony deregulation proposal

Results of a newly released survey from Ipsos-Reid, commissioned by Bell Canada, demonstrate that approximately two-thirds of Canadians support the federal government’s recent moves to deregulate the local telephony services market. This compares to one in four Canadians who believe the changes are unacceptable.The survey results come a little more than a month after Industry Minister Maxime Bernier announced that he was throwing out the CRTC’s local forbearance regime (Telecom Decision 2006-15), issued on April 6, 2006, and re-writing it. Bernier’s re-worked regime discarded the commission’s market-share test and instead proposed a number-of-competitors test. As well, the number of quality-of-service indicators ILECs had to provide to competitors was reduced from 14 to nine. According to Lawson Hunter, executive VP and chief corporate officer at BCE Inc., the Ipsos-Reid results demonstrate that public opinion regarding the proposed regulatory changes to telecommunications appears to be on the side of the federal government. He notes that as the cable companies have rolled out their telephony services consumers are beginning to realize the benefits of competition. The survey data also shows that consumers are generally satisfied with the level of competition for residential/home telephone service. According to the Ipsos-Reid report, nearly two-thirds of survey respondents feel they have an adequate choice of competitors for local telephony service. As well, results are fairly consistent across all regions of the country. One of the more interesting findings from the research was that a majority of Canadians even believe a duopoly telecommunications competitive landscape would be acceptable to them. According to the results, 68% say this type of situation would be very or somewhat acceptable, while 27% said this would be somewhat or very unacceptable. "That was an interesting result, too," Hunter tells Network Letter, "because it sort of says the minister maybe went further than he needed to in the residential market." Under Bernier’s local forbearance regime, an ILEC can apply for forbearance in a particular market if there are three independent facilities-based providers present.A large number of Canadians also believe that there should be some regulatory symmetry among all companies that compete in the local telephony market. According to the results, a vast majority of Canadians agree (64% strongly agree and 29% somewhat agree) that "all companies that compete in the field of telecommunications should be treated the same way by federal policies." The Ipsos-Reid results are also similar to results of a Decima Research survey done for Bell Canada, Telus Corp. and the Public Interest Advocacy Centre (PIAC) as part of a submission to the Telecommunications Policy Review Panel in 2005. Specifically regarding the treatment of companies, the Ipsos-Reid results show higher support, but the two questions weren’t asked in the same way in both surveys, so they can’t be directly compared. But Hunter says this demonstrates Canadian consumers have been consistent in their support of equal treatment of telcos and cable companies. The survey results also come as Parliament kicks off a winter session, already shaping up to be active in telecom. Opposition parties and opponents to Bernier’s changes are mobilizing to do what they can to slow down the changes or stop them altogether (see other lead story and NL, Jan. 19/07). Bernier’s decision has been roundly criticized by consumer advocates such as the PIAC and the Union des consommateurs as well as the Quebec Coalition of Internet Service Providers. They say the decision won’t lead to a more competitive environment, but could in fact lead to the re-monopolization of the telecom sector. They also point to a September 2006 Pollara poll that states three-quarters of Canadians believe local telephone companies shouldn’t be able to charge what they want for local service without first having rates approved by the CRTC. Attitudes Towards Competition In the Local Telephone Market% Who Agree Region TotalBCAlbertaSk/MNONQuebecAtlanticAll companies that compete in the field of telecommunications should be treated the same way by federal policies.93%89%96%87%94%95%94%Traditional telephone companies should be able to waive service charges, like a $55 re-connection fee, as a consumer promotion.87%83%93%86%87%89%86%If a consumer switches to a different residential/home telephone service provider, traditional telephone companies should have no restrictions and should be able to immediately compete to win-back that consumer’s business.85%81%93%87%87%81%87%Philosophically, I believe that consumers, not government regulators, should determine what price to pay for residential/home telephone services.77%77%82%73%78%73%76%Source: Ipsos Reid

Canadians support federal government’s telephony deregulation proposal

News | February 2, 2007

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