GATINEAU – One of the most important CRTC hearings in some time (perhaps the most hyped since Let’s Talk TV) begins Tuesday in Gatineau. Hundreds of thousands of words have been written about the upcoming hearing, including thousands by Cartt.ca breaking down the issues (please see our extensive coverage at the bottom of this piece), but it’s important to remember the Commission is interested in a number of specific questions.
Some things to remember. The CRTC already had the wireless carriers come up with low-cost data only plans. We wonder how those are selling? Wireless wholesale roaming is different than wholesale mobile virtual network operators. Markets can be defined in many ways, not just geographically. The federal government is demanding lower wireless prices, so the heat is on CRTC chair Ian Scott and the commissioners on the panel: Christianne Laizner, vice-chair, telecom; Christopher MacDonald, Atlantic and Nunavut commissioner; Alicia Barin, Quebec commissioner; and Joanne Levy, Manitoba and Saskatchewan commissioner.
As well, the Regulator has already said it is leaning towards mandating MVNOs, but with an expiration date. While device financing isn’t part of the questions you’ll see below, expect that issue to be discussed over the next nine days, as will the extremely important issue of who gets to decide where 5G radios can be placed and how much that should cost. One thing not on the table is the Wireless Code of Conduct, which was recently updated and will not be touched.
The hearing starts Tuesday at 9 a.m. with the Competition Bureau, followed by Shaw Communications and Xplornet.
Here are all of the questions the Commission hopes this hearing will answer, as outlined in the original notice from February 2019:
Competition in the retail wireless service market
Q1. Provide your views on how the Commission should define markets for the purpose of assessing the state of competition in the retail market.
- How should the relevant product market be defined for the purpose of assessing retail competition? Can the product market be segmented for this analysis and, if so, how? For example, should the Commission consider the prepaid and postpaid markets separately?
- What is the appropriate geographic market for the assessment retail competition?
- Identify the key market indicators for the assessment of the state of retail competition in the mobile wireless service market(s). In other words, what specific evidence should the Commission gather and how can that information be used to assess competitiveness?
Q2. Comment on the competitiveness of the mobile wireless service market(s). Are the mobile wireless service needs of Canadians currently being met? How have competitive conditions changed over the past five years? If the Commission’s mobile wireless service regulatory framework remains unchanged, what do you expect the level of competition to be in the future?
Q3. Are there issues that require regulatory measures at the retail level (i.e. beyond current measures such as the Wireless Code and mandatory participation in the Commission for Complaints for Telecom-television Services Inc. [CCTS])? If so, what are the issues and what measures would be required? Explain why these measures are necessary.
Q4. Discuss how Canada’s retail mobile wireless service market(s) compare(s) internationally, and provide any studies and reports you have in this regard. Which countries offer the best comparisons with Canada and why? Discuss whether international comparisons are meaningful in the context of mobile wireless service regulation.
Q5. If the retail market, or a portion of it, is found to be insufficiently competitive to protect the interests of users, what regulatory measures (e.g. the application of additional conditions of service or mandating of the provision of lower-cost data-only plans), if any, ought to be applied to ensure that the policy objectives of the Act, as well as the Policy Direction, are met?
Wholesale mobile wireless service regulatory framework (roaming and MVNO access)
Q6. Discuss whether the current wholesale mobile wireless service regulatory framework effectively supports competition in the retail market.
Q7. Discuss whether there have been any developments, technological or otherwise, that would require the current wholesale roaming policy to be modified. For any proposals to modify that policy, provide rationale for why the change is necessary and how it would benefit retail competition.
Q8. Comment on whether the Commission’s preliminary view that the national wireless carriers should be required to provide wholesale MVNO access on a mandated basis is appropriate. Should this requirement apply to other wireless carriers as well and, if yes, why?
Q9. Comment on how a wholesale MVNO service should be structured and implemented. In particular, discuss the following:
- whether there should be a requirement for an MVNO to own a minimum amount of facilities in order to be eligible for a wholesale MVNO service.Footnote19 If so, what should that amount be and how should evidence of facilities ownership be demonstrated by a potential MVNO seeking access?
- whether there should be other restrictions or eligibility criteria. If so, why?
- whether it would be appropriate and/or feasible to establish different regulatory requirements for wholesale MVNO service on the basis of geographic divisions. For example, should the service be mandated provincially or on another basis, as opposed to nationally?
Q10. What terms or conditions should apply to regulated wholesale MVNO access?
Q11. Discuss whether the Commission should set a wholesale rate for MVNO access.
- If a rate is to be set, would it be appropriate to establish an interim rate as part of this proceeding and, if so, what principle(s) should be used to set that rate?
- Alternatively, should the national wireless carriers be required to make available a certain amount of capacity on their networks for MVNOs to use at commercially negotiated rates? If so, how should the amount of reserve capacity be determined? In this scenario, would it be appropriate to have a default tariffed rate to act as a backstop if negotiations fail?
- What are the advantages and disadvantages of each approach?
Q12. Discuss what would be an appropriate phase-out process for a mandated wholesale MVNO access service. For example, should the service be phased out on a specific, pre-determined date, be subject to a trigger that initiates a phase-out period, or be subject to another process?
Future of mobile wireless services in Canada
Q13. Provide your views on the future of retail and wholesale mobile wireless services in Canada. How do you foresee the rollout of small cells and 5G technology taking place? Over what time period do you expect this rollout to occur?
Q14. What are the challenges facing carriers as they continue to deploy their networks, particularly with respect to small cells?
Q15. Identify any expected changes or new technologies that are likely to be deployed in Canadian wireless networks that will have regulatory implications in the near term. How can the Commission ensure that its regulatory frameworks account for market and technological changes?
Q16. What are the issues associated with wireless carriers obtaining access to infrastructure, including towers, sites, structures, and fibre transport? Discuss whether the Commission’s existing rules are sufficient to address these issues and what changes, if any, could be made to improve these rules under the Commission’s current statutory framework.
- If there is a need for the Commission to mandate additional wholesale services to support network deployment, identify those services and demonstrate their essentiality in accordance with the Essentiality Test set out in Telecom Decision 2015-326.
- If a wholesale service that ought to be mandated is currently forborne from regulation, explain how that service no longer satisfies the conditions for forbearance under section 34 of the Act.
Other matters
Q17. Are there any other matters, issues, or proposals related to mobile wireless services, beyond those listed above, that the Commission should be aware of and potentially make determinations on as part of this proceeding? Identify and explain why those issues are relevant and include proposed regulatory solutions.
- Wireless Review: Little support for the Competition Bureau’s conclusions
- ANALYSIS: Competition Bureau proposal is not so scary for wireless carriers (and comes with $526 million in benefits)
- Wireless Policy Review: The songs remain the same
- Wireless Policy Review: Competition Bureau recommends “facilities-focused” MVNOs
- Wireless Review: Bureau to get the confidential details, too
- Wireless Review: Commission wants to hear why device financing plans are onside with the Code
- Wireless Review: Amazon, Facebook, Google, Samsung, Sprint and T-Mobile want to see MVNOs in Canada, too
- Wireless Review: Why the possibility of short term price breaks is not worth the long term cost
- Wireless Review: Railways, Utilities, want spectrum access, too
- Wireless Review: To MVNO, or not MVNO, or Full MVNO…
- Wireless Review: Cogeco says MVNO is dead; we want HMNO
- Wireless Review: Strong regional competitors curb cell phone plan prices, says Competition Bureau
- Wireless Review: Why mandated MVNOs will damage regional wireless players
- Wireless Review: Competition Bureau wants CRTC to reconsider and force cellcos to give more data
- Is the Competition Bureau attempting to hijack the CRTC’s wireless review?
- Wireless Review: MVNOs coming to Canada? Yes, but neither fast, nor enthusiastically, nor forever
