Too early to decide on fibre-network regulation: Competition Bureau

GATINEAU, Que. — CRTC Chairman Jean-Pierre Blais said during the first day of the CRTC’s hearing into its wholesale wireline regulations that his commission needs to be a “doctor” rather than a “coroner” for the telecom industry. In an exchange with Patrick Hughes, a senior economist at the Competition Bureau, Blais said the commission must anticipate changes in the telecom industry in order to enact effective regulation. In its filings to the CRTC, the Competition Bureau has suggested that Blais delay any move to open up fibre-to-the-premises (FTTP) networks to wholesale competition until the regulator has enough information to determine whether FFTP is a separate product than traditional cable networks that needs separate rules. “If the commission defines the relevant product market based on the evidence available in this proceeding, this may result in an incorrect market definition,” Hughes said in his opening statement to the hearing. “In other words, there is a risk that the commission may adopt unnecessary regulation.” Blais questioned Hughes’ assertion, saying that the regulator’s job is in part to look to the future and make sure its policies are compatible with its stated goals of ensuring a competitive market that enables consumer choice. The CRTC should diagnose and treat problems before they happen, he suggested, rather than wait for innovation to be choked off by market conditions or misguided regulation. In his opening statement, Blais said the CRTC would make sure its approach to FTTP would “strike an appropriate balance between sustainable competition and sufficient incentives to invest in networks by both the incumbents and competitors.” The wireline hearing, where the CRTC is also considering its policies on telephone services and other wired connections, is the third major hearing in the last three months. In September, the commission held a wide-ranging review of TV policy, followed by a hearing on the wholesale wireless industry. In their filings in the wireline proceeding, Rogers Communications Inc. and BCE Inc. asked the CRTC to end wholesale access for ISPs entirely. All of the major telecom companies, as well as representatives from small and regional Internet service providers, are due to testify at the hearing before it wraps up Dec. 4. Jean-Francois Mezei, Montreal-area telecom consultant with Vaxination Informatique, testified on Monday that the current wholesale regulations work for consumers and that the CRTC should open up fibre networks to the same rules. Mezei also asked the commission to lower the wholesale prices it sets for access to incumbents’ networks, because the prices are meant to encourage “facilities-based investment” by the small ISPs. But small ISPs, who use mandated access to reach consumers but have built their own back-end networks for connecting to the Internet, shouldn’t be forced to string new connections to every customer who wants their business. “Duplication of the last mile is not desirable,” Mezei said. “Imagine 100 separate FTTP cables on a pole going through a neighborhood. High prices that do not result in increased facilities-based competition hurt consumers and limit growth in the use of telecom facilities.” Mezei suggested that, if the future of Canada includes multiple fibre connections to every home for telecom services, there should be at least one line that is structurally separated from the incumbent carriers and open for wholesale access. At one point, CRTC vice-chairman of telecommunications Peter Menzies asked Mezei about how the commission should regulate wholesale Internet access in rural areas. “The politically correct answer is to let the market decide,” Mezei said, to which Menzies replied, “If that was the answer, none of us would be here." — With reporting by Peter Henderson at phenderson@thewirereport.ca and editing by Derek Abma at dabma@thewirereport.ca

Too early to decide on fibre-network regulation: Competition Bureau

News | November 24, 2014

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Too early to decide on fibre-network regulation: Competition Bureau

News | November 24, 2014

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

NDP critic calls for Rogers to reverse price hikes or be blocked from federal contracts

Rogers, Cogeco, Quebecor challenge ILECs at CRTC hearings

Cogeco defends infrastructure upgrade amid TekSavvy dispute

Cogeco MVNO operations still a ways away

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us