By Denis Carmel
GATINEAU – On December 10, 2019, the CRTC opened a new proceeding to examine potential barriers to the deployment of broadband-capable networks in underserved areas in Canada, such as support structures and the cost of access to transport networks.
It identifies two issues that might help accelerate the rollout of broadband”: In this regard, identifying barriers to extending transport networks and accessing support structures, while considering regulatory steps to address such barriers, could simultaneously help to reduce the costs associated with extending broadband networks and serve to improve Canadians’ access to high-quality telecommunications services,” the CRTC document reads.
In its 2021-22 forecast document, the CRTC said it wants to “remove barriers to broadband internet access in underserved areas in Canada. Despite the financial support to be received from the Broadband Fund or public funding, internet service providers face challenges and obstacles that can limit their ability to provide improved broadband internet access services in some areas of Canada.
“In 2021–2022, the CRTC will oversee the implementation of its determinations resulting from its consultation on potential barriers to deployment of broadband-capable networks in underserved areas in Canada,” it concludes.
After some delays, interventions to the December 19th proceeding were filed on May 7th and they are rather predictable even though the world is still in a Covid-19 induced flux.
Large internet providers say that transport is highly competitive, and that government money is instead needed to deploy in uneconomical areas.
“The Commission should review its existing and developing frameworks to ensure that they are not inadvertently draining capital that can be used to fund broadband expansion in rural and remote areas. Policies like mandatory wholesale access to high-speed internet facilities, mandatory roaming at regulated rates and a potential mandate to enable mobile virtual network operators (MVNOs) act as a significant drain on private capital. If those frameworks are modified to reward the building of facilities, more capital should become available for rural broadband expansion,” Telus argues.
Other large ISPs argue the same thing. “With private investment in retreat, the achievement of universal high-speed service for all Canadians will necessarily require more public funds from a finite tax base—raising difficult policy and political choices for government,” reads Bell’s application.
Reciprocally, competitors agree costly transport is a barrier. “There is a severe supply shortage for transport services. Monopolistic conditions exist throughout most areas of Canada, where the incumbent is the only supplier. The status quo is unlikely to change absent regulatory intervention due to very high barriers to entry for would-be suppliers of transport services. Such barriers include complex planning and logistics, exorbitant costs and prolonged construction timelines. TekSavvy’s own experience confirms that the cost of building transport facilities is especially prohibitive,” reads the company’s intervention.
It also asks for more information on the availability of existing transport facilities. “Parties seeking transport service also struggle with discoverability of supply conditions. No reliable detailed maps of incumbent or third-party transport facilities are readily available,” reads the TekSavvy intervention.
The Canadian Electricity Association, disagrees where some said affordable access to support structures is a barrier – instead saying they are a partner in the rollout of telecommunications services.
Finally, PIAC lashed out in a long, researched intervention. “Recent self-isolation, social distancing and economic activity restrictions, emergency orders and public health authority guidance and requests in light of the Covid-19 epidemic, issued by municipal, provincial and territorial governments and exhorted by the federal government, as well as enforced in certain cases by the federal Quarantine Act, mean that most Canadians, including rural-dwelling Canadians, now absolutely require broadband connectivity to stay safe, healthy, connected and, for the fortunate, employed, while those that are unemployed or laid-off rely on communications to access essential benefits,” its application reads.
However, the consumer group takes a different view of this specific process. “Accordingly, our submission, while touching on the narrow matters of middle-mile transport access and rates, as well as access details such as pole attachment, does not dwell on them, because ‘fixing’ those narrow issues will not usher in the dramatic improvements in rural broadband connectivity we need now, not in 5-10 years. Instead, the entire regulatory approach needs to be radically reconsidered, and fast,” PIAC argues.
Next steps will be announced later said the CRTC.
The outcome could be the start of a lengthy process to re-regulate transport, which had been forborne in 2011. As to the support structures (hydro poles) the Supreme Court already determined the CRTC has no jurisdiction on provincially regulated public utilities and would require a legislative change, also a lengthy process, but is partly under way as it has been addressed by the Broadcast and Telecom Legislative Review Panel.
