Final CRTC policy direction references rural connectivity, investment

The government’s new policy direction to the CRTC — first proposed in March and focusing on affordability and consumers — is now in force. The final version of the policy direction was published in the Canada Gazette on Thursday, and has some differences from the initial proposed order, specifically mentioning investment, rural access to telecom services, accessibility and regional telecom providers. It slightly shifts the scope of the direction from ordering the CRTC to consider how it can promote competition, affordability, consumer interests and innovation “when relying on regulation” to consider how its decisions promote those principles. The initial version directed the CRTC to look at the extent to which its measures “encourage all forms of competition,” but the final version says it should consider how its decisions “encourage all forms of competition and investment.” The reference to investment is something Canada’s largest wireless providers had asked for during the consultation period. Experts have told The Wire Report that the ultimate impact of the new directive will depend on whether “competition” is interpreted to mean facilities-based or service-based competition. Another change is to a line that states the CRTC should ensure “affordable access to high quality telecommunications services is available,” which now specifies those services should be “available in all regions of Canada, including rural areas.” When considering how its decisions “enhance and protect the rights of consumers in their relationships with telecommunications service providers,” the final version now adds, “including rights related to accessibility.” Another change is to the portion of the order that directs the CRTC to weigh how its decisions reduce barriers to entry and barriers to competition for “new and smaller” telecoms, which now says those barriers should be reduced for “providers that are new, regional or smaller than the incumbent national service providers.” The new policy direction doesn’t replace the 2006 version that instructs the CRTC to rely on market forces to the maximum extent possible, but is instead considered an additional direction “to guide the Commission on how the 2006 Direction is to be implemented.” During the consultation period, some of the large telecoms had also asked the government to explicitly state that the new direction is complementary to the 2006 order, which was introduced by the previous Conservative government and then-Industry Minister Maxime Bernier. Smaller companies and advocacy groups had asked for more forceful language, with OpenMedia submitting a petition with 14,000 signatories calling for the removal of the 2006 policy directive. TekSavvy Solutions Inc. welcomed the direction in a Tuesday press release, saying the government effectively ordered the regulator to put "consumers at the heart of its decision-making." The company's vice-president of regulator affairs added that the direction will set the CRTC on a path to promoting a "level playing field for all competitors." In a Tuesday press release, OpenMedia welcomed the direction as a "significant step forward in putting people before Big Telecom. "All barriers to innovative new providers like , which would challenge the stronghold of Big Telecom and dramatically reduce the costs of cell phone prices in Canada, have effectively been removed," executive director Laura Tribe said in the release. In its own Tuesday-afternoon press release, the CRTC said the policy direction "will be applied to current and future telecommunications proceedings, including the review of mobile wireless services and other proceedings where final submissions have not yet been made."

Final CRTC policy direction references rural connectivity, investment

Brief | June 18, 2019

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Final CRTC policy direction references rural connectivity, investment

Brief | June 18, 2019

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