CNOC supports proposed policy direction, with “minor changes”

The Competitive Network Operators of Canada has lent its full-throated support to the federal government's proposed new policy direction for the CRTC, one that orders the regulator to promote, encourage, and foster competition, affordability, consumer interests and innovation. At the same time, CNOC has proposed "a small number of minor changes" that would "align the text with the government’s stated intentions." If amended, CNOC wrote in its Tuesday submission to the Governor in Council, the policy direction "will mark a pivotal moment for Canadian telecommunications policy," the organization wrote. The new policy direction, proposed in late May, replaces the existing – and somewhat competing – policy directions from 2006 and 2019, which direct the CRTC to promote free market solutions and competition, respectively. The new policy direction also represents something of an end to a long-running fight over regulated access rates for wholesale-based third-party internet service providers, and represents the government's response to a trio of petitions asking cabinet to overturn or send back a May 2021 CRTC decision to reverse course on dramatically lowering access rates for wholesale third-party internet providers. In the proposed policy direction, the CRTC will have to “proactively monitor” the competitive effectiveness of its wholesale internet access framework going forward, and “adjust the framework as necessary and in a timely manner, including by making proactive adjustments.” CNOC wants the government, however, to "correct failure" of its 2021 wholesale rates reversal by "providing for competitive access to -based facilities over all mandated wholesale high-speed access platforms." CNOC is also asking the government to add to language requiring the CRTC to maintain a regulatory framework for mandated wholesale access and proactive monitoring by adding explicit language about ensuring that access "at regulated rates, until it determines that broad, sustainable and meaningful competition will persist if rates are no longer regulated.” "This addition is consistent with the government’s articulation of a need to require large carriers to continue to give access to competitors at regulated rates," CNOC wrote. "The added language is important as it prevents the Commission from prematurely deregulating wholesale rates, which would allow the incumbents to totally eliminate service-based competitors." And while CNOC supports the proposed direction's insistence on timely proceedings and decisions at the CRTC, CNOC encouraged the government to consider introducing statutory deadlines for CRTC decisions, citing the example of the United Kingdom. The organization also wants to see language added to the direction that would ensure that the commission will prioritize competition over both the aggregated and disaggregated access models. A new paragraph proposed by CNOC would ensure "that mandated wholesale access is to be provided on all wireline technology platforms (including fibre-to-the-node and FTTP) over all types (aggregated, disaggregated, etc.) of wholesale high-speed access services." "This direction is urgently needed to pave a clear path towards timely competitive access to mandated wholesale services over FTTP-facilities while the Commission continues to address high-barriers to the deployment of disaggregated wholesale high-speed access services," CNOC wrote, "which remain the exclusive mandated wholesale service platform by which competitors can reach their end-users via FTTP facilities." CNOC would also like to see more robust language around MVNOs, and include the stated option for the CRTC to move to a full MVNO model "upon the earliest indication that broad, sustainable and meaningful mobile wireless competition is not accelerating and becoming firmly entrenched during or after the mandate of the facilities-based MVNO model." The proposed policy direction's existing language only provides for the extension of the current facilities-based MVNO model past its current seven-year mandate. The CRTC's facilities-based MVNO model, established in 2021, has been slow to get off the ground as incumbents and regional facilities-based carriers spar over the terms and conditions of the regime. Xplornet Communications Inc. blamed those delays this past weekend when it announced it would be shuttering its Xplore Mobile wireless business in Manitoba. — Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Paul Park at ppark@thewirereport.ca

CNOC supports proposed policy direction, with “minor changes”

Broadcast | July 19, 2022

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CNOC supports proposed policy direction, with “minor changes”

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