Telcos offer different opinions about recent CRTC reorganization

A senior MTS Allstream executive praises the recent reorganization at the CRTC, but hopes it will not slow the streamlining being undertaken on the telecom side. "I think frankly if there was a question, you would want to hope that the momentum that the commission has developed on the telecom side doesn’t get interrupted," Chris Peirce tells Network Letter. "I hope that isn’t the case, and I know that wouldn’t be the commission’s intention." However, Bell Canada chief of regulatory affairs Mirko Bibic doesn’t share the concern. "I don’t view it as jeopardizing any improvements that have been made, or are in the process of being made on the telecom side. I think it isn’t abandoning service and process improvements on the telecom side and focusing only on broadcasting," he says. "I hope that’s not what is going to happen here. What I’m saying is that the same type of improvements haven’t been made on the broadcasting side – and I’m not commenting on that – I would have thought those focused on broadcasting regulation would view this as a positive step." The reorganization brings greater changes to the broadcasting side than to the telecom side, and it also creates a converged broadcasting and telecommunications group that is aimed at enabling the commission to better deal with emerging technologies. Three divisions or pods – under the control of an associate executive director of broadcasting, an associate director of telecommunications and associate director of industry analysis, economics and technology – will report to Len Katz, who has been given the title of executive director of broadcasting and telecommunications. Scott Hutton has been named the acting associate executive director of telecommunications, while no one has yet been named to the associate executive director of broadcasting portfolio. The latter position apparently will be opened up for both internal and external candidates. Hutton is in charge of what is essentially the current telecom policy and operations group, while the yet-to-be-named associate director of broadcasting will head up the broadcasting policy and operations groups as previously laid out, but with specific changes aimed at realizing some of the regulatory efficiencies that have already been achieved on the telecom side. As well, Tony Lacombe, director of broadcasting operations who reports to the yet-to-be-named associate executive director of broadcasting, has been charged with the special project of further streamlining the broadcasting side. The third pod, or what CRTC chair Charles Dalfen calls the middle leg, is a new integrated branch that will be responsible for industry analysis, economics and technology on both sides."We have achieved it to a large extent in telecom and so now we have to do the same in broadcasting," CRTC chair Charles Dalfen tells Network Letter. "We need to continually be alert to the need to avoid regulatory lag, and be more responsive to the applications before us." While expressing some reservations that the changes might negatively effect the telecom side, Peirce states that Katz is the man to help speed things up on the broadcasting side. "I think he expresses the view that he’s about making sure the machinery is working, that the decisions are coming. The proceedings are now moving to resolution as quickly as possible. I think he’s looking to bring that ethic to the broadcast side," Peirce notes. "We do think from our experience with MTS TV that – probably because of the numerable policy objectives in the Broadcasting Act and the fact that there has not been much competition on that side in the way there has been on the telecom side – the broadcasting side does need sorting out." Dalfen says another major reason for the reorganization is "to be able to optimize our broadcasting and telecommunications activities and expertise to respond to…both technological changes and consequent changes in business strategies." The CRTC chair adds, "In addition to technological changes, we have a lot of companies that we regulate that are increasingly operating on both sides of the house – Telus, Rogers, Shaw and so on. So we have to continually be sensitive to that technological change and the shifts in corporate convergence to ensure that we continue to discharge our regulatory responsibilities and give effect to the objectives set out in the broadcasting and telecommunications acts." Dalfen explains that the third pod will serve both broadcasting and telecom, and will "be responsible for understanding the full corporations we regulate, and their strategies in media and telecom generally. It will also be responsible for keeping abreast of new technologies – both transmission and distribution technologies as they emerge and become increasingly digital and broadband-based, whether they are fixed or wireless. It will also be alert to the regulatory challenges of new media, such as the Internet and iPods, personal video recorders and what the implications of those new technologies and devices are for ongoing regulatory decision-making." Bibic sees great potential in this third pod that straddles both the telecom and broadcasting sides. "I view it as positive. I can’t see why it wouldn’t be viewed as a positive step. It seems very logical to me. This new unit…seems like a very good idea, especially since it seems like it is going to be a support group to provide input and advice to both the broadcasting and telecom side," he notes. "In theory it would be devoted to tracking industry and technology trends, and making both the telecom and broadcasting sides aware of those trends and the commonalities between the two over time. I view that as a very positive step, especially if it results in the commission being able to keep abreast of those changes both on the industry, economic and technology side more quickly that can only make things better. Bibic also gives his support to reorganized CRTC falling under the control of Katz. "Having all staff report to one person in the form of Len Katz seems to me to make a whole lot of sense too," he says. "I think Mr. Katz has done a lot of good things on the telecom side, especially in terms of improving the service levels and the timelines and the process and procedures. And I think those in the industry who focus more on broadcasting regulation should view that as a positive as well if those improvements can be transposed over to broadcasting." The CRTC reorganization was announced internally on December 12, and Dalfen made reference to it later that evening at a closed-door session at the International Institute of Communications Canadian Chapter conference in Ottawa. The reorganization was made public on December 15 in a CRTC news release that states, "We expect the need for refinements of this structure over the next few months, as we learn more about the requirements of the environment and the potential in the organization. These changes will not, however, be of the magnitude of those announced today; they will be incremental in nature." To view the organization chart of the new CRTC, click here.

Telcos offer different opinions about recent CRTC reorganization

News | December 21, 2005

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