Playing politics with telecom: Bernier pushes his forbearance regime forward

Industry Minister Maxime Bernier has again refused to listen to the Standing Committee on Industry, Science and Technology. Late yesterday afternoon, the minister implemented his forbearance regime, with a couple of slight modifications, despite a report from his own Parliamentary committee calling on the minister to rescind his order and table comprehensive legislation and regulations in the House of Commons. The move shouldn't come as a surprise to anyone in the telecommunications industry, though. Last December the minister disregarded a recommendation from the Industry Committee calling for a more in-depth study of the policy direction to the CRTC. It was said a number of times during the Standing Committee's hearings on the local forbearance variance order that the Conservative Party is governing by decree and this is yet another example of them dismissing the committee process. Criticism will undoubtedly rain down on the Conservatives and Bernier over this ruling, but changes to the original proposal should help provide some clarity to small providers. They may not support the regime, but at least they know they have 18 months to solidify their position in the market before having to compete in a completely unfettered fashion with the incumbent telephone company. Despite not heeding to calls from his own committee to table legislation, Bernier did order the CRTC to create an independent telecommunications consumer agency "with a mandate to resolve complaints from individual and small business retail customers." The minister believes this agency is "an integral component of a deregulated telecommunications market." Under the minister's order, the CRTC will be charged with monitoring consumer complaints and will be required to report to the Governor-in-Council at least once a year. The first report shall be submitted no later than April 6, 2008. But based on the minister's comments, the CRTC may never have to submit a report. During a conference call with reporters yesterday, Bernier said he expects the CRTC to be able to set up this agency "in a couple of months." When asked whether this was a realistic goal, Len St-Aubin, director general of Industry Canada's telecommunications branch, told Network Letter it "will depend on a number of factors," but he is hopeful the industry will come forward with a plan. Now that there will be greater reliance on the Competition Bureau for disciplining the telecom sector, the government has committed $10.5 million over five years to be used exclusively in dealing with telecom related issues. There are still some unanswered questions, though. It remains to be seen how long it will take the telecom consumer protection agency to come to fruition and what its relationship with the Competition Bureau of Canada will be. Network Letter will strive to get you these answers as well as reaction to the ruling next week.

Playing politics with telecom: Bernier pushes his forbearance regime forward

News | April 5, 2007

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