OTTAWA – TekSavvy and Bell have both proposed changes to the federal government’s proposed policy direction to the CRTC, which would impact how the government directs the Commission to handle its regulated wholesale Internet regime in very different ways.
TekSavvy argues the government’s proposed policy direction “emphasizes the importance of a healthy wholesale regime” and yet “does nothing concrete to address any of the basic problems that have destabilized the regime over the past 7 years.”
The independent Internet and voice service provider points out the policy direction was issued as the government also rejected petitions to overrule the CRTC’s decision to reverse a previous decision that lowered wholesale rates, or what TekSavvy calls the “most destructive, anti-consumer decision in its history of wholesale regulation.”
By denying the petitions, the Governor in Council “declined to ensure fair, evidence-based wholesale rates – namely, the linchpin of a healthy wholesale framework that would deliver competition and lower prices to consumers,” its submission reads.
“If this bleak status quo is not immediately corrected, there will be few viable wholesale-based competitors remaining to benefit from the Proposed Direction in the long term,” TekSavvy argues, adding that several large competitors including EBox, “have already exited the market or even been purchased by incumbents.”
Because of this, TekSavvy proposes the policy direction be used to direct the CRTC to do five things within specific timeframes, including reducing existing wholesale rates, enforcing equitable speed-matching rules, adopting and adhering to timelines to minimize regulatory delay, issuing a public ethics code for commissioners, and reporting “on the feasibility of structural separation in the telecommunications sector between businesses that build infrastructure and those that provide services.”
The independent service provider points out Canadians are “suffering through a cost-of-living crisis” and says taking the steps it has recommended “would be an easy and long overdue win for consumers.”
Bell unsurprisingly raised very different concerns in its submission to the government on the proposed policy direction, which it argues contains directions that contradict the Telecommunications Act.
For example, Bell raises concern about the policy direction forbidding the CRTC from forbearing from regulating certain services even if it were to determine competition in a given market is sufficient. The telecommunications service provider argues this is contrary to the act, which requires the CRTC “forbear from regulating where competition is sufficient to protect the interests of users.” In particular, Bell says the policy direction requires the CRTC to mandate wholesale fixed Internet services, in contradiction of the act.
Bell also takes issue more generally with the use of prescriptive language in the proposed policy direction, arguing the Telecommunications Act allows the Governor in Council to issue general directions on broad policy matters, and only provides for the power to issue specific directions in certain circumstances (as outlined in section 12 of the act, which addresses petitions to the Governor in Council).
Bell argues the proposed policy direction “currently provides directions that are so specific and prescriptive that they lie beyond the power of the Governor in Council under section 8 of the Act.”
The telecom argues the issues it has raised can be “fixed by replacing certain instances of “must” with “should” and by inserting “if necessary” to certain proposed Clauses, to ensure that the new direction is flexible enough to adapt to evolving market circumstances.”
TekSavvy and Bell both sent Cartt.ca copies of their submissions to the government on the proposed policy direction to the CRTC. We reached out to several others asking for their submissions for this story. Quebecor responded to say it did not submit any comments, Telus has not gotten back to us and SaskTel and Rogers both indicated the government would make their submissions public and did not send copies in advance of that happening.
The government has confirmed the submissions will be made public, but it is unclear when it will do so. “In the coming weeks all comments received will be posted on Innovation, Science and Economic Development Canada’s website here: Gazette Notices and Petitions – Spectrum management and telecommunications,” an ISED spokesperson told us via email.
