Clement announces 700 MHz spectrum auction in 2012, delays foreign ownership policy

OTTAWA—Industry Canada will launch a consultation on a 700 MHz spectrum auction to be held by the end of 2012, Industry Minister Tony Clement said Monday. But the minister did not announce any new policies resulting from his summer consultations on foreign ownership in the telecom sector. “With respect to foreign ownership ... I am telling you those consultations will continue as we proceed towards our consultation on the 700 MHz spectrum auction,” Clement said, speaking at the International Institute of Communications (IIC) annual conference. “After all, how spectrum is allocated and who is eligible to compete and pay for it are interrelated issues.” Following his speech, Clement told reporters that two years to consult and hold the auction is enough time to “do it right.” Michael Hennessy, Telus Corp.’s senior vice-president of regulatory and government affairs, said the company is pleased with the timing of the auction, adding it will not be “rushed.” Clement made the comments as part of an update on the federal government’s national digital economy strategy. The government closed its consultation on the strategy in July. Clement said the official strategy will be released in the spring. Observers expect it to be paired with the next federal budget. Clement’s speech focused on spectrum and telecom issues but also touched upon skills development and information and communications technologies (ICT) adoption. Clement said an important part of the digital strategy will be promoting broadband, noting that 98 per cent of Canadians will have access to minimum speeds of 1.5 Mbps when the government completes its Broadband Canada initiative. “That’s the first big cornerstone. We're working on creating a right regulatory environment to encourage competition and investment in infrastructure,” he said. “This is something the CRTC is also considering and it bodes well for a convergence of thought from both an incentive and a regulatory point of view.” Clement told reporters he would like to increase the basic broadband speed from 1.5 Mbps to a higher number, saying it should be a “moving target.” “The goal posts continue to change and we have to be nimble enough as a society to meet those expectations,” he said. During a panel discussion on national digital strategies, Blair Levin, a fellow of the communications and society program at the Aspen Institute, suggested that the government should focus on improving its infrastructure and network speeds for mobile devices, which are quickly gaining in popularity. Clement also said in his update that he has asked Industry Canada to begin a review of the effectiveness of the government's roaming and tower sharing policies for wireless. Clement said the review should wrap up before the spring. The minister also announced Monday that he is freezing spectrum licence fees at their current levels and extending the length of licence terms for mobile broadband spectrum for all future auctions and licence renewals. In May, the department said it was considering new licence fee arrangements, suggesting that mobile spectrum be priced at market value, but wireless operators are opposed to the plan. Jim Patrick, vice-president of government affairs at the Canadian Wireless Telecommunications Association (CWTA), said in an email that freezing licence fees will provide more stability for the wireless industry. “We particularly welcome his announcement that spectrum licence fees won't be going up and that licence terms will be longer going forward. That sends exactly the right signal about stability and predictability at exactly the right time,” he said. Hennessy added that he supports the decision to freeze fees. While Clement’s announcement touched on several key parts of the strategy, some observers said the update lacked content. OpenMedia.ca, a digital rights advocacy group, said in a release that Clement failed to address consumer choice, open access, and diversity of choice in the telecommunications market. Gerri Sinclair, a strategic technology consultant and executive director of the masters digital media program at Great Northern Way Campus in British Columbia, said during the national strategy panel that she was disappointed with Clement’s announcement. “It was very much backward-looking instead of forward-looking,” she said. Sinclair said the speech should have shown more of a focus on digital literacy, adding that children should begin learning about technology in kindergarten. Sheridan Scott, a partner at Bennett Jones LLP, said in an interview that one obstacle for Clement to implement a skills strategy is that education falls under provincial jurisdiction. But the minister has “several levers” to implement change, including convening education ministers to make changes to schools’ curriculum, she added. Scott said Clement should have provided more insight into future plans in his update. “There weren’t very many announcements. There was certainly a review of past actions, but I’m more interested in the future than in the past,” she said. “Maybe there will be announcements in the spring. My only concern there is … the spring is six months away … Meanwhile the U.S., Australia, England and France, they’re executing their .” Scott said the plan should come soon, adding that without a strategy Canada cannot be prosperous. She said the strategy should focus on digital literacy and ICT adoption by small and medium-sized businesses. The government needs to ensure there is sufficient competition across sectors to ensure companies are encouraged to keep up with and develop new technologies, Scott said. In his speech, Clement conceded that technology adoption among small companies is a problem that needs resolving. “As a first step, I have reached an agreement with the Business Development Bank of Canada to make ICT adoption a core part of its mandate,” Clement said. Clement said he has asked the bank to better provide companies with the capital to purchase new equipment. The minister added that in early 2011, he will also co-host, with Clément Gignac, Quebec’s economic development minister, a federal, provincial and territorial meeting for economic ministers to work on digital issues. kfournier@thewirereport.ca

Clement announces 700 MHz spectrum auction in 2012, delays foreign ownership policy

News | 11/22/2010 11:57 pm EST

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