OTTAWA – Can’t let a week go by without a telecom announcement from Industry Canada.
This Monday’s was the announcement that the policy direction tabled in June is now in force. The directive told the CRTC that it had to rely on market forces "to the maximum extent feasible" and regulate "to the minimum extend necessary."
(Cartt.ca has covered the Industry Ministry’s directives and other moves throughout 2006. Search "policy direction" or "policy directive" on our site to see what we mean.)
"Canada’s New Government has again furthered its ambitious policy agenda for the telecommunications sector by issuing the Policy Direction to the CRTC," said Minister Bernier in a statement. "Our plan will increase competition in the marketplace, which ultimately will have a positive effect on the consumer who will benefit from greater choices and improved products and services."
This directive didn’t emerge unchanged, however. "From our perspective, this is excellent news for telecom customers in Canada," said MTS Allstream CEO Pierre Blouin. "Minister Bernier’s amended direction captures a broader understanding of the market by recognizing that fair wholesale access for competitors to the networks of incumbent telecommunications companies is essential. This will ensure robust telecom competition and technological innovation, which is a win for everyone."
Blouin noted amendments to Section 1(c)(ii) direct the CRTC to ensure competitors’ concerns regarding the review of mandated access to wholesale service, including potential impediments to network investment by competitors, and the ability of incumbent carriers to exercise inappropriate market power, are addressed.
The policy direction, which comes into force after almost six months of consultation, requires that the CRTC now take a more market-based approach to implementing the Telecommunications Act (the Act).
A policy direction is a tool available to the government through the Act to provide policy guidance to the CRTC on how it should exercise its regulatory mandate. In this instance, the Policy Direction applies prospectively to the wide variety of telecommunications-related regulatory issues that the CRTC handles, including matters currently pending before the Commission, subject to the limitations specified in section 11 of the Act.
"By issuing the Policy Direction (usually a rare move, but one done twice by the Minister in 2006), we have taken a significant step forward in making Canada’s telecommunications regulatory system more modern, flexible and efficient," added Bernier. "We want to ensure that Canada’s telecommunications industry is internationally competitive and successful and is shaped to best support our ever-evolving and rapidly changing telecommunications needs."
Incumbent telcos are now hoping that his most recent directive, to mostly deregulate the local phone market, will come into force sooner than six months.
