Effect of anti-terrorist laws on WSPs unclear; prepaid reportedly under scrutiny

Pre-paid wireless services could be on the chopping block if new anti-terrorism legislation, rumoured to be in the works, is passed. Speculation is circulating that the federal government will introduce another security bill, nicknamed "Omni 3" in Ottawa, which could place stringent restrictions on wireless telecommunications services. Some have even suggested that the new legislation could call for the abolition of pre-paid service. The federal government’s initial response to the terrorist attacks of September 11 had provisions that apply mainly to the wireline and Internet market. But some general terms that affect all industries have implications for the wireless sector. Concerns are being raised that the next wave of legislation could hit the cellular market hard. Following the attacks, the government passed bill C-36, the Anti-Terrorism Act, a review of which was conducted by David Elder, assistant general counsel at Bell Canada. After having studied the minute details of bill C-36, Elder is now waiting to see what will happen next. "There’s a whole long list of things that we had understood that law enforcement may be looking for and one of those was, we had heard, the elimination of prepaid wireless," he tells Report on Wireless. While rumours circulate about the possible demise of pre-paid wireless, the head of the Canadian Wireless Telecommunications Association (CWTA) isn’t as worried about the prospect. CWTA president and CEO Peter Barnes imagines the government will proceed as it has in the past when presenting all-encompassing laws. "I have not been hearing that pre-paid is at risk," he reports. "Traditionally, both on this issue and on other issues, the government’s approach has been one of consulting with industry, that if they are thinking about a change in legislation or regulation, they’ll either informally consult or even formally." Pre-paid has been a successful marketing tool and contributor to overall subscriber growth because many people do not have the credit history to subscribe to monthly plans. Young people and others with spotty employment or credit records are able to purchase hundreds of minutes up front. Security concerns have arisen because personal information about these subscribers is minimal at best. "We don’t have a lot of information on those people, so there’s a kind of anonymity that goes with it," Elder notes, "and unfortunately, I guess, pre-paid wireless is being used in the criminal sector. And so there are those in law enforcement that would like to see the elimination of prepaid wireless." Role of service provider dramatically altered When the topic of telephony use for illegal purposes arose in the past, the carriers would advise those complaining to contact local authorities. That may no longer be possible. Willful blindness – ignoring what a customer is doing with a carrier’s equipment – is now considered tantamount to abetting the illegal activity. The government has not indicated how severely it intends to enforce these sections of the law. While concerns have been raised in the past about abuse of police powers, civil liberties may not be as prominent now as they have been before. "Law enforcement post-September 11 is in a bit of a different position whereby they’re a bit more likely to be listened to and get what they want out of Parliament," Elder says. The Bell lawyer points out that, despite C-36, police are still required to obtain warrants before electronic surveillance is done. But the law does make it easier for law enforcement to obtain those warrants, which will likely result in more warrants and surveillance requests, possibly lasting over longer periods. Barnes is not worried about that prospect. The police have been concerned over abuse of wireless by criminal elements for years. "I’m sure they are carrying out analysis for lawful access and security issues," he states. "But they always have and I expect they’ll continue to talk to us and work with us and identify the appropriate solutions." Elder suggests that telcos and other firms will have to be diligent in any joint ventures with financial institutions. He cautions that all capital investments and joint ventures may have to be re-examined. The non-disclosure clauses of consumer contracts could be severely limited, and companies will have to monitor their charitable donations to ensure they are not contributing to suspected terrorist organizations. The federal government has been maintaining a list of known terrorists and groups. Firms are advised to consult the list to make sure they are not dealing with banned organizations. There is a feeling that, while the government rushed the original bill through Parliament, any future legislation would be dealt with more methodically. Looking at security issues from the vantagepoint of six months hindsight, Cabinet may be prepared to view the broader picture. "There continues to be a need for balance," Barnes tells Report on Wireless. "Today, if we’re speaking about security issues, it is the balance between security and economic development and going concerns in the business world." Elder has been putting on presentations to various segments of the telecom sector, outlining the implications the Anti-Terrorism Act has on it. (See the March 25/02 edition of RoW affiliate publication Network Letter for more details.) He is urging apprehensive stakeholders to take proactive measures before Omni 3 is introduced, if in fact it is. They should be communicating their concerns to the government right now, he says. Only by getting involved at the early stages can firms reduce the damage any new bill may cause them.

Effect of anti-terrorist laws on WSPs unclear; prepaid reportedly under scrutiny

News | April 3, 2002

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