Regulation & Policy: Telecom as Political Football

Telecommunications regulation in Canada appears to have taken a turn for the worse. It’s not that we’re headed in the wrong direction of over-regulating or regulating too little, it’s the politicization of the telecommunication file by the Conservative-led federal government that leaves a bad taste in some people’s mouths. Hank Intven, a noted telecom lawyer and former member of the Telecommunications Policy Review Panel (TPRP), said as much in his testimony before the Standing Committee on Industry, Science and Technology last month. "Whatever one thinks of the recent government orders to vary CRTC decisions, I don’t think anyone in a modern industrialized democracy believes that the political arms of government should regularly interfere with the decision making process of an independent professional telecom regulator," Intven said. Industry Minister Maxime Bernier has come under fire from some political opponents for blatantly disregarding CRTC decisions. Late last year he re-wrote the rules of regulatory forbearance, ignoring the commission’s opinion on the matter and devising a different method for deciding when incumbent local exchange carriers (ILECs) should be forborne from regulation.Despite the government’s rough treatment, Intven pointed out that telecom regulation is largely on the right track. He highlighted the Industry Minister’s policy direction that the CRTC should regulate as lightly as possible, the new VoIP ruling and the simpler local forbearance regime as important first steps. But he also said the government needs to move to the next stage. Intven said it’s "high time" the government introduced new telecommunications legislation that would modernize the telecom regulatory framework. Supporters of the government say the controversial moves it made last year were necessary because competition is thriving in major urban markets, and it’s no longer fair for the CRTC to shackle ILECs with regulated prices, terms and conditions. Besides, government supporters note, time is of the essence in this market and it would take too long to implement a new Telecommunications Act.Bernier Appears Before CommitteeOpposition members of the Standing Committee on Industry, Science and Technology questioned Industry Minister Bernier about his deregulation agenda when he appeared before them last month. One pointed query: why, after nearly a year since receiving the TPRP’s report calling for new telecom legislation, has Bernier failed to introduce such legislation? In response, the minister said he was still studying recommendations from the TPRP and wasn’t sure when proposed legislation would be presented to Parliament. Bernier did extend an olive branch to the opposition committee members, though, noting that before he proceeds with introducing new telecommunication legislation, he would like to have input from the committee.Overall, his much-anticipated testimony offered little in terms of what to expect next from the government. Bernier did say he and Cabinet colleagues have discussed removing foreign ownership restrictions on telecom service providers. New CRTC ChairKonrad von Finckenstein, former justice on the Federal Court of Canada and head of the Competition Bureau of Canada, was appointed chair of the CRTC on January 27. To many in the telecom industry, he was a good choice as he supports letting market forces, instead of regulation, direct the industry. His appointment could be a sign of things to come at the CRTC as seven seats will become vacant by November of this year, opening the door to the governing Conservatives to hand-pick like-minded people. Wireless Portability PredictionBusiness customers who want to switch providers, but are reluctant to do so because it would mean having to change telephone numbers, will soon be able to keep their numbers when they switch. Wireless number portability (WNP) comes into effect in the country’s major cities in March. But according to one senior service provider executive, the industry shouldn’t expect a huge jump in customer turnover – a phenomenon known as "churn." David Fuller, senior VP of solutions and products at Telus Corp.’s business division, said there won’t be a large number of customers looking to switch providers. But he also said WNP represents an opportunity for Telus to secure more business customers in central Canada, where the company has a lower penetration of enterprise clients.U-Telcos on the Info HookCanada’s utility telecommunications service providers are now required to provide information regarding their networks to the CRTC. This is part of an ongoing review of "essential" network elements that facilities-based operators must make available to competitive telecom service providers (Telecom Public Notice 2006-14).

Regulation & Policy: Telecom as Political Football

News | March 1, 2007

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us