Ottawa proposes new consumer-focused policy direction for CRTC

The Liberal government is proposing a significant departure from Ottawa's past policy direction to the CRTC, changing the focus from market forces to affordability and consumer interests. The policy direction governs how the CRTC makes decisions, and the new order would require the regulator to consider how regulatory measures “can promote competition, affordability, consumer interests and innovation” in issuing new regulations and rulings. The government said in a press release Tuesday the order “aims to improve the affordability of Internet and cellphone services for Canadians.” The previous policy direction -- which remains in place while the government consults on its new order -- dates back from when Maxime Bernier was Industry Minister in Stephen Harper’s Conservative government. It instructs the CRTC to “rely on market forces to the maximum extent feasible as the means of achieving the telecommunications policy objectives,” and, among other stipulations, to keep any interference with market forces at a minimum. The new policy direction, meanwhile, tells the CRTC that it should consider the extent to which regulatory measures “encourage all forms of competition; foster affordability and lower prices, particularly when there is potential for telecommunications service providers to exercise market power; ensure that affordable access to high quality telecommunications services is available; enhance and protect the rights of consumers in their relationships with telecommunications service providers.” The order follows some conflict between the CRTC and Innovation Minister Navdeep Bains when it comes to affordability and consumer issues since current CRTC chairman Ian Scott replaced the consumer issues-focused Jean-Pierre Blais. In 2017, Bains sent a CRTC decision on roaming for WiFi-first MVNOs back to the commission for reconsideration. When the CRTC doubled-down on the initial ruling not to mandate roaming, Bains considered sending it back for a second time. He also ordered the CRTC to look into misleading and aggressive sales practices after the regulator was asked to do so by consumer groups and refused. In its report on that process, released just last week, the CRTC found that the telecom industry suffers from an “unacceptable degree” of misleading and aggressive retail sales practices. The CRTC’s relationship with consumer groups has also grown frostier over the past year. "We are giving clear direction to the CRTC that Canadian consumers must be at the forefront of all future decisions," Bains said in Tuesday's release. The new order proposed by Bains would also require the CRTC to consider how regulatory measures “reduce barriers to entry and barriers to competition for new and smaller telecommunications service providers; enable innovation in telecommunications services, including new technologies and differentiated service offerings, and stimulate investment in research and development and in other intangible assets that support the offer and provision of telecommunications services.” Comments on the new order are due within 30 days, after which point it needs 40 sitting days in the House of Commons to pass before coming into force, according to Bains' spokesperson. That means the guidance will take effect before the next election. — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Kyle Duggan at kduggan@thewirereport.ca

Ottawa proposes new consumer-focused policy direction for CRTC

News | February 26, 2019

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Ottawa proposes new consumer-focused policy direction for CRTC

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