CRTC asks if incumbent networks should have MVNO set-asides

Ahead of its wireless review hearing, the CRTC is asking Canadian telecoms to answer a long list of questions related to the government’s new policy directive to the regulator to enhance competition and affordability. That includes the question of whether the CRTC should set-aside incumbent network capacity just for mobile virtual network operators (MVNOs). In a letter dated July 5, the CRTC requested specific groups address certain questions -- some of which are contained in submissions to the wireless review consultation -- including what they think constitutes MVNOs, what kind of MVNOs should be adopted if mandated and if it should adopt measures to prevent or limit flanker brands to encourage independent MVNO entry. The federal government’s new policy directive, with its focus on competition, affordability and investment, came into force in June. It’s intended as a supplement to the 2006 directive, which focused on market forces, and now requests the CRTC explore encouraging “all forms of competition and investment.” Only days after the new policy was announced, the CRTC reversed its long-held position that MVNOs aren’t entitled to mandated access to wireless providers’ networks. The commission now wants to know what kind of MVNOs it should adopt, if it should mandate them at the national, provincial or on the spectrum-tier level, and if it should require the incumbents set-aside some of their network for exclusive use by MVNOs at commercially negotiated rates -- and if default rates should be set by the CRTC in case negotiations fail. It also requested thoughts on Cogeco Inc.’s proposal for a hybrid mobile network operator (HMNO), where mandatory access to radio access facilities would be conditional on the renting company, which would already have telecommunications facilities, continuing to invest in its facilities. The regulator is also asking what percentage of the telecoms’ business include e-SIMS, which are cards that are embedded in the device, including whether Wireless Code rules around unlocking apply to the cards. Outside of MVNOs, the commission wants to know what kind of 5G transition plan the telecoms will have for customers with non-compatible plans and devices, and whether it should set-up a working group for 5G infrastructure deployment and who should be a member. It also wants to know what impact network sharing (such as that between BCE Inc. and Telus Corp.) has on the market and whether 5G small cell deployment will encourage sharing. The CRTC is also asking the incumbents to outline their pricing per GB for each brand between 2014 and 2018 nationally and by province and to back-up certain assertions that their prices have declined over the years. It is also probing what comparable benchmark the regulator should use to compare wireless markets, whether it should regulate data overage charges, require a price ceiling for wireless data plans and what the conditions for that would be, and whether it should “mandate the provision” of low-cost data plans. The CRTC had already approved low-cost data plan proposals from the incumbents late last year, which range from $15 for 250 MB to $30 for 1 GB of monthly data in pre- and postpaid flavours on both 3G and LTE on their flanker brands. In submissions to the wireless review, the Coalition for Cheaper Wireless Services (CCWS) said the CRTC should impose unlimited Canada-wide voice and text and 4GB of data on LTE for $25-$30 per month. The CRTC is now asking whether those proposals, among other low-cost suggestions, should be considered. Furthermore, it is also seeking information about whether customer retention tactics are an actual sign of competition or market power -- “in the sense that service providers are holding back their best offers until a customer threatens to leave.” It is asking whether it should put in place measures to limit win-back activities from the incumbents. The questions add more to the plate of the telecoms, who were asked by the regulator to answer -- on top of a request from the Competition Bureau -- more granular questions about their wireless operations, including revenues and data use. “In responding to the attached requests for information, parties should address whether and how their submissions and requested regulatory measures, as appropriate, are in line with these orders,” the letter said, referring to the policy directive. “Furthermore, in all subsequent filings as part of this proceeding, parties should explain how their requested regulatory measures would serve to promote competition, affordability, consumer interests and innovation while relying on competition to attain these objectives to the maximum extent feasible.” The comments are due Sept. 12. The CRTC is holding the wireless review hearing in January 2020. The questions are addressed to groups including those who participated in the wireless review consultation. In that cohort are the national and regional wireless players, the Competition Bureau, the Federation of Canadian Municipalities, the Canadian Internet Policy & Public Interest Clinic, OpenMedia, the British Columbia Broadband Association, and the Forum for Research and Policy in Communications. — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

CRTC asks if incumbent networks should have MVNO set-asides

News | July 15, 2019

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CRTC asks if incumbent networks should have MVNO set-asides

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