TekSavvy’s Abramson takes on incumbents at Telecom Summit

TORONTO — With a key decision from the CRTC on smaller service providers’ access to wireline telecommunications networks expected soon, three incumbents’ regulatory bosses took on their counterpart at TekSavvy Solutions Inc. over the issue at the Canadian Telecom Summit on Tuesday. During the so-called “Regulatory Blockbuster” panel discussion, TekSavvy chief regulatory officer Bram Abramson found himself arguing the merits of stronger oversight over the prices companies like his have to pay for access to networks owned by the major telecoms. “You’ll no doubt hear a great deal on this panel about investment,” Abramson said. “We like investment. We have no problem with it. But the question is always: investment in what? The Telecommunications Act and sound communications policy do not establish as a goal that we build as many redundant access networks as possible so that most of them can lay fallow most of the time. That is wasteful.” It’s similar to the argument Abramson made ahead of a CRTC hearing last fall into the wholesale wireline market. CRTC spokeswoman Patricia Valladao said in a recent email that a decision from that hearing is expected within weeks. Whether independents should have the right to access fibre-to-the-home (FTTH) networks is one of the matters that decision is anticipated to resolve. BCE Inc. chief regulatory officer Mirko Bibic challenged Abramson’s argument. “Our policies should encourage investment,” he said, adding that it works to have “multiple providers building multiple infrastructure, trying to beat each other on having the best networks.” Bibic said: “If you kind of take logic to its natural conclusion one state-owned network, and let everybody ride on that.” When given the chance to clarify his position, Abramson said he hopes “the market will bear a ton of separate, fallow network access lines,” but that this is not “the most efficient use of capital beyond a certain number of access lines, which is not one, which may be two in some places and I heard in some places it can go as high as three.” Abramson added that smaller ISPs can help incumbents recoup their investments in networks by being their customers. David Watt, Rogers Communications Inc.’s interim senior vice-president of regulatory, said his company has a history of “taking bold moves on new technologies you only get the bold moves taken if you’ve got multiple facilities-based providers.” He said Rogers will only make large investments in technology if a reasonable return is assured. Ted Woodhead, senior vice-president of regulatory affairs at Telus Corp., offered a harsh commentary on the state of the resale space. “Resale models … are not sustainable, they are not durable and we will be here every year until I retire having the same discussion. … Somebody will be sitting over there and they’ll say, ‘I’m paying too much for my wholesale access.’ ” Woodhead said independent service providers often cite retail prices in their arguments that wholesale rates are too high, though he argued that it’s the competitive state of the markets — something small ISPs say needs to be improved upon — that drive those retail rates so low. The only other representative of a non-incumbent telecom-service provider on the panel besides Abramson was Bob Boron, chief regulatory officer at Wind Mobile. Boron praised the government for moves it has made to support fourth wireless carriers across the country, including three spectrum auctions Industry Canada has held since early last year and the decision last month by the CRTC to regulate roaming rates paid by non-incumbent wireless carriers in Canada. However, Boron said “the job is not yet done,” adding that even more spectrum needs to be made available. Woodhead took Boron to task for that comment, saying that it has declined opportunities to purchase spectrum. It was an apparent reference to the 700 MHz auction in early 2014, in which Wind dropped out a day before the sale was to begin. “You need spectrum, but you also have to buy it,” Woodhead said. “And even when you’re given the opportunity to buy it and you don’t, I question why you need further regulatory assistance.” When audience members were invited to ask questions, VMedia Inc. director George Burger went to the microphone, saying he felt Abramson was getting “piled on” and needed some help in making the case for independent ISPs. “The incumbents’ role is to keep complaining about the fact that ISPs keep bringing up rates, and the ISPs’ role is to keep examining rates and trying to get to some truth of it.” He added that only the major telecoms that own the networks truly know the costs behind providing wholesale access, a situation that frustrates independent service providers. Woodhead said the CRTC gets all the information it needs when setting network tariffs, and it’s not necessary for those that require access to have that information, too. “What George is really saying is he wants to come in and run our business and look at all our financials and look at the costs and decide what he thinks,” Woodhead said, adding “that’s the regulator’s job and the regulator does a really good job at it.” — With reporting by Derek Abma at dabma@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

TekSavvy’s Abramson takes on incumbents at Telecom Summit

News | June 2, 2015

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TekSavvy’s Abramson takes on incumbents at Telecom Summit

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