Bernier calls for end of ‘control-freak’ CRTC’s role as telecom regulator

TORONTO — Conservative MP Maxime Bernier took aim at the CRTC and the previous government’s telecom and wireless policies Tuesday, calling for the commission to be phased out as a telecom regulator and the wireless sector to be opened to foreign competition. “As the industry evolves, the CRTC finds new reasons to continue to regulate it, in order to justify its existence. In doing so, the CRTC is not protecting consumers, it is only protecting its own power,” he said. In a speech at the Canadian Telecom Summit Tuesday, Bernier, who is currently running for leadership of the federal Conservative Party, said Innovation, Science and Economic Development Canada could take over the CRTC’s “remaining essential functions, including social regulation” and the Competition Bureau could deal with competition issues. “The telecom industry is a mature and competitive industry, and it should be treated as such. For me, it is not a playground for bureaucrats,” he said. Bernier said at the conference that when he was industry minister — a post he held in 2006 and 2007 — the federal government directed the CRTC to rely on market forces, in what was supposed to be a “solution to the CRTC’s control-freak mindset,” but that the commission “went back to its old ways” within a few years. He pointed to the CRTC’s recent proceeding on basic broadband services as an example of unnecessary regulation and an “obvious waste of time and money,” given that 96 per cent of Canadians have access to 5 Mbps speeds and that the needs of those who don’t are being addressed by industry investments and the federal government’s Connecting Canadians program. “I was especially shocked by the CRTC’s recent ruling that forced the telecom companies to share their fibre networks with so-called independent Internet providers,” he said in reference to the mandated access to fibre-to the-home (FTTH) networks, noting FTTH is a new technology that the CRTC is treating the same way as legacy networks. “Once again, the CRTC wants to impose a kind of artificial competition instead of letting market forces bring about real competition,” he said. “It is not the role of the CRTC, it is not the role of government, to decide how this increasingly complex market should evolve. It is up to producers, it is up to consumers,” Bernier argued. Bernier also took aim at the previous government’s wireless policies, saying recent spectrum auctions shouldn’t have had a set-aside, and the market should have been opened to foreign investors, which would have led to “real competition.” “Perhaps a big American or European company would have decided to enter to the Canadian market, or buy a Canadian provider. The threat of such as entry would have been enough to bring competitive pressure,” he suggested. Following his departure as minister, the ministry decided to institute set-asides in spectrum auctions, which he said meant “billions of dollars in unprofitable investments were wasted.” “Spectrum was misallocated, underused or not used at all for many years. For example, did not use its spectrum until it was sold last year. The spectrum bought by Videotron outside of Quebec is still not being used.” He called for the government to eliminate the mandated sharing of networks, hold spectrum auctions “without preferential rules,” and fully open the sector to foreign investors. Following his speech, Bernier told reporters that his planned phase-out of the CRTC would take two to four years. When asked about what his message would be to companies who have built businesses on the current wholesale system in place and are concerned about how the scenario outlined by Bernier would affect them, he said “they must continue to develop their products and invest in new technology and invest in new infrastructure.” “That would be their choice. They can be in the businesses or they can decide to quit the business, but that would be their decision.” Benier also said he was in favour of BCE Inc.’s acquisition of Manitoba Telecom Services Inc., and that the previous Conservative government’s fourth carrier policy was a mistake. “That was artificial competition, and like I said in my speech, you must deregulate and you’ll have real competition,” he said. — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Charelle Evelyn at cevelyn@thewirereport.ca

Bernier calls for end of ‘control-freak’ CRTC’s role as telecom regulator

News | June 7, 2016

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