By Greg O’Brien
OTTAWA – We at Cartt.ca didn’t quite understand a part of Innovation, Science and Economic Development Navdeep Bains’ announcement Saturday the government didn’t like the third party internet access wholesale rates set by the CRTC (even though the government declined to send the decision back to the Commission):
Bains’s statement said: “the Governor in Council considers that the rates do not, in all instances, appropriately balance the policy objectives of the wholesale services framework and is concerned that these rates may undermine investment in high-quality networks, particularly in rural and remote areas.”
We asked ISED Monday what “in all instances” means and whether or not it referred to how some of the incumbent carriers say the set rates are below their costs, or if it meant rates should be different in certain regions. Or something else.
ISED spokesperson Hans Parma in an email Tuesday said: “Setting the wholesale rates correctly is critical to ensuring competitive options for Canadians, while maintaining continued investment in high-quality networks and expanded access for Canadians, no matter where they live.
“There are a range of rates in the CRTC’s decision set according to the company, billing model, and network components under consideration. Having reviewed the petitions and following consultations, the Governor in Council considered that the CRTC decision set rates that do not, in all cases, appropriately balance the objectives of the wholesale services framework,” he said.
“The Government of Canada trusts that the CRTC will ensure fair and reasonable rates through its ongoing review process. The Government will monitor the situation closely to ensure frameworks have the right incentives for investment and competitive choice.”
We also asked, noting the CRTC and its costing experts worked on its August 2019 rates for more than three years, sifting through large quantities of data before arriving at their decision – and if the GIC took into account any new data during its year of deliberations on this appeal to cabinet?
Responded Parmar: “The Governor in Council carefully considered the petitions and the submissions from all parties as part of the public consultation on the petitions,” and that is also considered the documents found here.
