Federal parties take passing glance at telecom topics in election campaign

Telecommunications has evolved as one of the major drivers of the Canadian economy, but it’s not an issue that seems to be preoccupying any of the candidates in this federal election. A close examination of each of the party’s political platforms reveals very little attention to telecom matters, although there are some differences when it comes to deciding how the new economy should be regulated and financed. The lack of great detail on telecommunications doesn’t surprise one industry analyst. "I don’t think they understand what’s necessary or how you can update political policy for the new economy," Jeremy Depow, senior analyst with The Yankee Group in Canada told Network Letter. "There’s still a lot of work needed in order to grasp that" The Canadian Alliance’s 24-page document, A Time for Change, is less a policy platform than it is an attack on the incumbent Liberals. It recites a litany of questionable projects, which the party says proves the government bungled a billion dollars. The Alliance takes aim at one funding program in particular, Technology Partnerships Canada, which has received its fair share of criticism over the years from within and outside of Canada. If elected, the Alliance vows to kill the program. Of the $909 million allocated to TPC between 1999-2002, about $600 million is earmarked for the aerospace sector. Only a fraction of the remaining one-third goes to so-called knowledge-based industries, including telecommunications. Over the past year, the only telecom-related companies to receive TPC funding have been wireless firms Research In Motion ($33.9 million) and Spacebridge ($2 million). Some critics have suggested that the program should be refocused with a larger percentage of disbursements going to telecom and ‘new economy’ initiatives. Eliminating TPC may not be a good idea, according to Depow. "Some of these services and programs actually do good things," he says. "Yes, they’re poorly managed, yes, maybe in some factors they may be outdated. But I think updating programs like that are probably much more useful than just getting rid of it." The Progressive Conservative Party takes direct aim at the over-regulation of business, and the ongoing relevance of the CRTC. "Recent developments in information technology and the recent advancements made by the Internet are bringing significant changes in the world of telecommunications," the PC states in the policy document adopted at its national policy convention in May. "I don’t think we’re pointing the finger at what (the CRTC) is doing wrong or right," says Paul Comeau, assistant to PC Heritage critic Mark Muise. "(We’re calling for) an overall review … there have been questions about the long-term role of what the CRTC is going to be with improving technologies." Tories promise less regulation On the issue of regulation, the Tories prefer industry acting as its own watchdog, and greater use of tax incentives and disincentives. It describes regulations as "a form of hidden taxation", and takes aim at the continued need for regulations that determine which channels cablecos offer, or who can provide long distance service. The PCs also call for new regulations to be written in a manner that is easy to understand, noting that "regulations are usually written in legal language using vocabulary, sentence structures and references that mean little or nothing to those without legal training." Of interest to wireless carriers is another PC commitment that would ensure regulatory fees reflect actual costs. "A Progressive Conservative government will ensure user fees that are tied to regulatory approval be limited to no more than the cost of actually providing that approval. Further, those fees should be used to improve service, allowing for faster regulatory approval," the party states. Liberals take ‘connectedness’ agenda to the next levelAs expected, the Liberal Party highlights its commitment to connectivity, although ‘Information Highway’ initiatives don’t rank as highly as they have in earlier platforms. The first item in the latest version of the Red Book, Opportunity for All, notes that, "A new Liberal government will make high-speed broadband internet access available to residents and businesses in all communities in Canada by 2004," repeating a promise the Liberal government initiated with the introduction of the National Broad-band Task Force (NL, Oct. 23/00). The Grits also vow to step up governmental presence on the web. "A new Liberal government will be a model user of information technology and the Internet, so that by 2004 Canada will be known around the world for having the government most electronically connected to its citizens," the party states. Depow believes the Liberals may get an undeserved boost if the CRTC announces its decision on service to remote areas around the time of the election. "If they can spin it that they’re contributing to growth by making it easier for to happen, they’ll get to see benefit out of that," he predicts. The commission is believed to be preparing announcements on remote access and on contribution that should be made public within a couple of weeks. The three other parties currently represented in the House of Commons are not likely to form the next government. But if Canadians opt for a minority government on Nov. 27, the Bloc Québécois, the Progressive Conservatives and the New Democrats could wield influence over the ruling party. Of the five parties in Parliament, the Bloc Québécois has the fewest candidates running in this election. But the party did not stint in its platform, releasing a 177-page book outlining its vision for the nation. Most of the document, not surprisingly, calls for greater provincial power and less federal influence. The new economy section is no exception. "The federal government must cooperate with the provinces and stop acting unilaterally as it has been doing under the rationale that it enjoys jurisdiction in the area of telecommunications and broadcasting," the BQ states . The party calls for greater French-language content on the Internet, pointing out that by the end of last year only 2.4 per cent of web pages were in French. Citing the recent disputes over iCraveTV and Napster, the Bloc vows to protect the rights of artists on the Internet. The New Democratic Party all but ignores the world of technology in its 20-page paper, Think How Much Better Canada Could Be. Much of the document is taken up with calls for increased taxes for industry and the well-to-do. The NDP does, however, pledge to "expand federal investment in research and development in post-secondary educational institutions, the National Research Council and in private, non-profit research and development centres." Regardless of who forms the next government, Depow expects that foreign ownership limitations for telecommunications firms will be eased. Industry Canada has been sending out signals to that effect, the analyst says, and the upcoming spectrum auction is drawing attention to the issue. "Definitely it will be something any government will look at." The parties are finally understanding that Canadian companies require the larger capital resources that would be available to them if ownership restrictions are eliminated, he says. The various telecom firms have made donations to several political parties over the years. Last year the Liberals, Alliance and Conservatives all benefited from telecom largesse. Depow, who once worked for the Conservatives, figures the companies don’t really care who emerges victorious on Nov. 27. "I think they would like to see a government that isn’t so hard on them tax-wise, for one thing," he says. "And on the other side, there’s privatization and the lack of regulations, which the Canadian Alliance or the Progressive Conservatives would bring in."

Federal parties take passing glance at telecom topics in election campaign

News | November 20, 2000

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