CNOC largely supports the direction, asks for minor changes
By Amanda OYE
OTTAWA – While the government’s new proposed telecommunications policy direction for the CRTC and accompanying documents had some harsh words for the Commission, some are saying the direction does not go far enough to be able to ensure competition and foster affordable pricing in the industry.
Comments submitted to the government on the proposed policy direction were due yesterday.
The Public Interest Advocacy Centre (PIAC), a consumer rights advocacy organization, argued in its submission the proposed policy direction is “severely out of touch” with the context of telecommunications competition and regulation, and called it a “largely toothless instrument”.
The organization indicated it believes at most the new policy direction only serves to entrench the status quo.
“While the new policy does somewhat build upon the previous 2006 and 2019 policy directions, PIAC’s view is that the improvements are too few and the policy direction overall too permissive to adequately address the telecommunications market and regulatory approach that have become increasingly anti-competitive and frankly, hostile to consumer accessibility, reliability and affordability,” PIAC’s submission reads.
The organization argued if the government was serious about its intension to ensure telecommunications services are innovative, competitive and affordable, it would have overturned the CRTC’s 2021 decision on wholesale rates, which reversed a previous decision lowering the rates, “and then introduced the 2022 Policy Direction as a continuing commitment to retail Internet service affordability,” its submission reads.
Instead, the government denied petitions requesting the CRTC’s decision be rescinded, which sends the message the government is not going to stand behind its policy directions, PIAC said.
The organization’s submission also referred to the Commission’s recent, controversial decision on mobile virtual network operators (MVNOs). While the CRTC decided to regulate access to incumbent networks for MVNOs, it limited the organizations qualified to benefit from its decision to those that already own spectrum and facilities, with the intention being for the facilities-based MVNOs to eventually build out their own networks.
PIAC called on the government to use the policy direction to compel the CRTC to implement a “true MVNO” framework, which would not require ownership of spectrum and facilities. (This is not the first time the government has been asked to intervene in the CRTC’s MVNO decision – there was also a petition to cabinet to have the part of the decision limiting full MVNOs from benefitting reversed but the government declined to intervene.)
PIAC also wants the government to rewrite the policy direction to be directive rather than suggestive. “The Government must then reverse the CRTC’s decisions if it ignores clear directive requirements,” PIAC wrote.
A specific example the organization pointed to in its submission is with regards to the government’s suggestion the Commission “should” hold proceedings and make decisions in a timely manner.
“Despite evidence to the contrary, the Commission clearly believes it is working at an acceptable pace, which calls into question the efficacy of a policy direction that very generally directs the Commission to issue decisions in a “timely manner.” The government has not provided any details on what timeframes are acceptable, nor whether and how it will step in to address excessive delays,” PIAC said.
The consumer advocacy organization further proposed a provision be included directing the CRTC “to explicitly justify all decisions based on specific provisions in the policy direction, and to explain how each decision advances consumer affordability and choice.”
PIAC is not completely against the proposed policy direction, which the organization said has several sections that “work together to preserve a wholesale access framework that promotes wholesale competition and by extension, affordable retail Internet services,” its submission reads.
“PIAC is also encouraged to see the addition of new consumer-centric provisions,” including provisions around the promotion of clarity and transparency of pricing information.
The Competitive Network Operators of Canada (CNOC), while expressing full support of the proposed policy direction in its own comments submitted to the government, suggested several changes to the sections on wholesale access PIAC supports.
CNOC said its suggestions will “align the text with the government’s stated intentions.”
The organization argued the CRTC’s “failure to ensure that competitors have wholesale access to essential FTTP-based facilities has contributed materially to Canada’s abysmal ranking in international price comparisons of higher speed broadband services,” its submission reads.
“The government must therefore, consistent with its stated intentions, require the Commission to correct this failure by expressing explicit directions providing for competitive access to FTTP-based facilities over all mandated wholesale high-speed access platforms (i.e., aggregated and disaggregated).”
Additionally, CNOC proposed a few changes to the wording of the proposed policy direction, which are designed to strengthen the language around mandated access to wholesale services and ensure the CRTC continues to regulate wholesale Internet access rates until it determines there will continue to be competition even if rates are not regulated.
Like PIAC, CNOC also proposed changes to the policy direction with regards to MVNOs. However, while PIAC called on the government to direct the CRTC to implement a full MVNO model, CNOC is open to seeing if the facilities-based model works first.
The organization more specifically asked the government to “direct the Commission to implement the Full MVNO model upon the earliest indication that broad, sustainable and meaningful mobile wireless competition is not accelerating and becoming firmly entrenched during or after the mandate of the facilities-based MVNO model.”
The timing with which the CRTC holds proceedings and issues decision was another area of the policy direction CNOC wants adjusted.
“The lack of timely proceedings and decisions has been extremely destabilizing for the industry. Commission decisions tend to be delayed well over a year and in some cases, more than two years,” the organization’s submission reads. As such, while CNOC supports the government’s proposal to require the Commission to hold proceedings and issue decisions in a timely manner, it also asked the government to consider legislating statutory deadlines for CRTC decisions.
Cartt.ca received copies of PIAC and CNOC’s submissions. The government is to post them, along with all other comments submitted on its proposed policy direction to the CRTC, on ISED’s Spectrum Management and Telecommunications web page.
