CWTA chief advocates against MVNOs
OTTAWA – While the topic of MVNOs dominated this year’s Canadian Telecom Summit in Toronto, it also made sizable waves during the Thursday morning’s meeting of the ongoing Rural Digital Infrastructure Committee in the nation’s capital.
Speaking before the committee on Thursday, Robert Ghiz, president and CEO of the Canadian Wireless Telecommunications Association, issued a pointed warning about MVNOs to committee members – similar to the one he delivered in Toronto on Tuesday.
“MVNOs do not invest in wireless infrastructure or spectrum. Rather, they pay wholesale rates set by the regulator to use carrier networks, and use this mandated access to compete against facilities-based carriers, the very ones making [technological] investments and expanding coverage,” he said.
“In countries where this has been tried before, it’s resulted in serious decreases in network investment. Those same countries are now trying to reverse course. The CRTC has twice previously declined to mandate MVNO access, knowing it would undermine investment in wireless investments, and it’s not clear why it’s now being considered, especially when both ISED and the CRTC have made connecting all Canadians such a large priority.”
Touting the fact CWTA members have invested more than $50 billion to build Canada’s wireless network, giving Canadians the second-fastest wireless speeds in the world (according to OpenSignal), Ghiz emphasized the figure is more, on a per-customer basis, than any other country in the G7 and Australia.
Acknowledging that regulation can encourage investment, Ghiz cautioned it can also have the opposite effect.
“If government truly believes connecting Canadians is such a priority, policies should be aligned toward this goal, as policy confusion will only harm rural connectivity.” – Robert Ghiz, CWTA
“Unfortunately, investment, especially in rural areas, faces an uncertain future. As Motion 208 recognizes, facilities-based competition is one of the best ways to encourage investment. And under policies supporting facilities-based competition, sustainable competition in the wireless retail market is starting to gain momentum, resulting in the growth of wireless subscribers, increased data consumption, declining prices and more choice for consumers. If government truly believes connecting Canadians is such a priority, policies should be aligned toward this goal, as policy confusion will only harm rural connectivity,” Ghiz said.
“Equally important is the ongoing investment by facilities-based carriers expanding reach for both fixed and mobile wireless services. Yet at a time when government is stressing continuing to invest in and expand wireless infrastructure, and while they’re introducing targeted fiscal measures toward this goal, the government is considering measures that, if they process, will discourage investment and disproportionately harm rural Canadians.”
Equally important is ongoing investment by facilities-based carriers continuing to expand reach for both fixed and mobile wireless services. Yet at a time when the government is stressing continuing to invest in and expand wireless infrastructure, and while they’re introducing targeted fiscal measures toward this goal, govt is considering measures that if they proceed, will discourage investment and disproportionately harm rural Canadians.
Appearing before the committee just days after the CRTC issued its first call for applications for the $750-million Broadband Fund, CRTC executive director of telecommunications Chris Seidl reiterated the organization’s goal of having 90% coverage by the end of 2021 (of networks providing 50 Mbps download and 10Mbps upload) and for 100% coverage as soon as possible within the following decade.
“We want all Canadians, in rural and remote areas as well as in urban centres, to have access to voice and broadband Internet services on fixed and mobile wireless networks so they can be connected and effectively participate in the digital economy. Reaching this goal will require the efforts of federal, provincial and territorial governments, as well as of the private sector,” Seidl said.
During the subsequent Q&A period, however, NDP committee member Brian Masse took on a combative tone with Seidl. Citing the 25 Mbps download/5 Mbps upload service currently being proposed in some communities as not good enough, Masse asked Seidl why the organization has effectively allowed a two-tier system to emerge in light of the CRTC’s internet rollout.
“If you’re not willing to live up to [the CRTC’s] objectives, why should the private sector have any incentive to do that?” – Brian Masse, NDP MP (Windsor West)
“The universal service objective is 50/10. We want all Canadians to have that. In 2016, we indicated that some remote regions may require incremental steps to get there. To allow for that we’ll be accepting applications that don’t meet the 50/10 initially but would be able to get there eventually,” Seidl said in response.
“If you’re not willing to live up to [the CRTC’s] objectives, why should the private sector have any incentive to do that?” Masse asked.
Seidl noted the fund is a competitive process and that all projects will be evaluated but the CRTC will only be selecting high-quality projects to move forward and that they may not in fact select applicants that cannot meet the 50/10 objective.
“I find it hard to believe that we’d build a second-class system,” Masse said. “What’s going to be the timeline to meet what the rest of Canadians are going to be delivered in terms of the 50/10?”
Seidl wasn’t able to provide a specific timeframe when those who might initially receive 25/5 service would see the increase to 50/10, noting there are still Canadians with no access to broadband services at all. It was an answer that didn’t sit well with the NDP MP.
“This is completely outrageous,” Masse shot back. “If you don’t even have a deadline for that, we’re [effectively] building a second-class citizen system.”
