Telecom players lobbying on spectrum issues

The government needs to move forward with plans to change its spectrum management policies, industry players say. “I’m talking about things like the structure and timing for the 700 MHz auction, which the U.S. did in 2008 … and a broader long-term spectrum release plan and policy framework, which has been in the works for years,” Jim Patrick, vice-president of government affairs at the Canadian Wireless Telecommunications Association (CWTA), said in an interview. Other issues, like consultations on how to establish spectrum licence fees, also need to get going, he said. Through September and early October, Bell Canada, Rogers Communications, SaskTel, Telus Corp., Barrett Xplore Inc. and Quebecor Media Inc. updated their federal lobbying registrations. The registrations reflect a wide-range of discussion from copyright to broadband infrastructure, but industry players say spectrum is taking centre stage. Patrick said the CWTA met with Industry Minister Tony Clement and departmental officials last week to discuss delays in spectrum regulatory issues, including Industry Canada’s spectrum licence fee policy. New spectrum licence fees, which have been contentious between industry and government players for over a decade, will come into effect in April 2011. But the government has yet to determine how those fees will be calculated. “We’re in that fiscal year, and we still don’t know what the fees are going to be. When you talk to the department, you get the sense that they’re moving all of these things forward at the same time, or trying to, along with other things like foreign ownership and other very key pieces,” he said. “But for us, some of the stuff is very nuts and bolts, day-to-day. We need to know it, and we’re not seeing it.” Patrick said the government is working on releasing several pieces of its digital economy strategy at once—an approach that may be slowing down the process. “We worry that it becomes a self-delaying process rather than a self-supporting process,” he said. Patrick said that the central concern of many telecom companies is the lack of a long-term policy and schedule for the sale of spectrum. “It makes network and capital planning almost impossible when you don’t know how much spectrum is going to be available. You don’t know when it is going to be available, and you don’t know what it’s going to cost,” he said. Bernard Courtois, president of the Information Technology Association of Canada (ITAC), said in an interview that the government’s number one priority should be the digital economy strategy. “There are a number of things involving the future of broadband, where it has become apparent that availability of spectrum and the fees for spectrum … are key if we’re going to build the next-generation of broadband,” he said. Courtois said establishing a five-year plan for spectrum sales and announcing details for the upcoming 700 MHz auction would help the industry plan and invest. In an email statement to The Wire Report, Bell spokeswoman Jacqueline Michelis said spectrum management is one of the key issues the government should focus on. “There is no question that the explosive growth of mobile data means finding more spectrum below 1 GHz should be the top priority for government,” Michelis said. “The best way to get spectrum into the hands of those can use it to its greatest national benefit is to open spectrum auctions, where all bidders are free to bid for the spectrum they require without artificial restrictions. And given the magnitude of the investments involved, the government also needs to be more precise about the timing of the release of future spectrum.” Michelis added that the government should rethink its policy for spectrum licence fees. “If the government is truly serious about building a digital economy, it should commit to not increasing spectrum licence fees, which are already 32 times higher per capita in Canada than in the U.S., to the detriment of Canadian consumers and businesses.” Bill Macdonald, senior vice-president of strategic business development at Barrett, said the company is communicating with the government about ensuring the efficient use of rural spectrum. “The licence blocks are so big that when they’re auctioned and purchased for the urban centres, they come with rural,” he said. “The spectrum that is out there right now is held by the incumbents, but they’re only using them for the urban centres.” Quebecor is also registered to lobby the government on spectrum issues. According to the company’s lobbying registration, updated Sept. 15, Quebecor met with the government to discuss wireless issues including tower sharing, roaming, and spectrum auction policy. The company also spoke to the government about Industry Canada’s prohibition against exclusive site arrangements for roaming and antenna towers, but Quebecor declined to comment on its lobbying activities. Quebecor subsidiary Videotron Ltd. launched its wireless services in Quebec last month. One industry insider told The Wire Report that several telecom companies are also meeting with high-ranking officials to discuss ownership transactions between telecom and broadcasting companies. Shaw Communications Inc. is in the process of acquiring the broadcasting assets of Canwest Global Communications Corp. and BCE Inc. is purchasing CTVglobemedia Inc. kfournier@thewirereport.ca

Telecom players lobbying on spectrum issues

News | October 8, 2010

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