Senators asked to champion net neutrality in comms laws review

OTTAWA -- Lawmakers need to make net neutrality a major priority and imprint the principle into any new communications legislation, University of Ottawa law professor Michael Geist and Carleton University communication studies professor Dwayne Winseck told Senators Tuesday. They suggested that politicians should strongly endorse net neutrality in law as a way to keep competition up in the cultural sector and avoid content discrimination from vertically-integrated telecommunications companies. It's a recommendation that already received unanimous support in the House of Commons, though it was panned by the industry. The recommendation comes as the Senate committee on transport and communications begins its review of Canada’s communications laws – the telecommunications, broadcasting and radiocommunication acts. The committee’s study is happening alongside a review spearheaded by a panel of experts appointed by former Heritage Minister Mélanie Joly. The professors also warned against treating the internet as an “ATM” for other sectors. “The idea that somehow the solution for the cultural sector or various other issues is to take out the perceived profits that live in the internet and transfer it over to other sectors through subsidies is the wrong model to take,” said Geist. “It may have been a model we saw on the broadcast side some time ago, but it’s not the right model on the internet side. What it will do is exacerbate the problem on affordability on the other side because at the end of the day it’s ultimately customers that pay the price.” The communications acts review was launched immediately following a report put out by the CRTC, which recommended internet service providers (ISPs) and other telecom providers contribute an equal amount to the system as broadcasting distribution undertakings (BDUs) do. The regulator also said online services should make “equitable” contributions. Winseck said senators should be cautious when groups approach them warning about Canadian media in crisis. One group that has used the phrase is Friends of Canadian Broadcasting, which has been lobbying government to change tax rules around online advertising on foreign platforms. The transport committee called for a study into the issue in August. Winseck said there is “no crisis” for media across the board, but policy responses are needed where there are real difficulties. Namely, that would be advertising-supported media, where overall ad spending has peaked and appears to be declining on a per capita basis, Winseck said. “What we need is a properly-scoped definition of the problem and we need scalpels, not sledgehammers,” he told senators Tuesday. Liberal Sen. Dennis Dawson said the committee wants to have its final report on the study tabled before the next election so its recommendations can be on the political agenda, and asked what their biggest priorities should be. Winseck replied that senators should start with a "strong endorsement of net neutrality" because the Canadian communications sector has “sky-high” levels of vertical integration. He also cautioned senators not to “waste your time" considering whether or not to roll broadcasting and telecommunications laws under one act – something that nearly a decade ago, former CRTC chairman Konrad von Finckenstein had suggested might one day happen – or whether to transfer the CRTC’s authority to the Competition Bureau. “We don’t need to re-construct the housing,” he said. In a similar vein, Geist warned against regulating the internet like it was a broadcaster. “Any decision to treat the internet as indistinguishable from broadcast for regulatory purposes would send us down a deeply troubling path that is likely to result in decreased competition, increased consumer costs and dubious regulation.” Senators raised concerns about internet and mobile prices, rural access and competition – and whether the CRTC is doing its job as a regulator. Independent Sen. Diane Griffin complained about “embarrassing” rural internet service in PEI and high prices, and asked what they could do to address inconsistent service in rural Canada. Winseck said while the government has been increasing efforts to foster competition, pressure needs to be kept up on the regulator. He suggested mobile virtual network operators (MVNOs) would help to create competition without building redundant networks in places like PEI. Conservative Sen. Michael MacDonald said that like many Canadians, he’s “outrageously frustrated” with the country’s telecommunication “cartels,” and asked if the CRTC is still relevant. Geist said the CRTC has never acted with the “big steps” needed to shake up the industry, but governments also always have the option of themselves acting against high prices or low competition. Winseck suggested to senators that the CRTC has fallen into an administrative or managerial mindset, rather than trying to act as a “watchdog.” The two offered a wide range of different proposals for regulating content and competition in Canada. Winseck suggested bringing subsidies for broadband connectivity into line with funding for CBC/Radio-Canada, transferring authority for spectrum auctions from Innovation, Science and Economic Development Canada (ISED) to the CRTC, and eliminating section 28 of the Telecommunications Act to make it more independent from the Broadcasting Act. That section allows exceptions to the no undue preference clause in the Telecom Act if they advance the goals of the Broadcasting Act, he outlined in his brief to the committee. Geist suggested that lawmakers reject calls for content and website blocking, something that’s currently in front of the CRTC in the form of an industry coalition proposal to implement a blocking regime to fight piracy. He also said the government should repeal the CRTC’s ability to decide which channels run in Canada and instead structure the regulator as a consumer watchdog. Tuesday was the first meeting for the Senate committee’s new study; a second has yet to be scheduled. — With reporting by Kyle Duggan at kduggan@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Senators asked to champion net neutrality in comms laws review

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Senators asked to champion net neutrality in comms laws review

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