Telecom in the spotlight in new Bains mandate letter

Prime Minister Justin Trudeau has delivered a greatly expanded set of telecom and internet-related authorities to returning Innovation Minister Navdeep Bains in this year’s mandate letter. The letter, released Friday, points to increased focus on the telecom sector, giving Bains detailed directions on wireless pricing, spectrum auctions, Canadian content regulations, and new regulations around data and privacy. One topic sure to attract scrutiny is the issue of wireless prices, which came up repeatedly in the run-up to the election. In the letter, Bains is advised that he should “use all available instruments, including the advancement of the 2019 Telecom Policy Directive, to reduce the average cost of cellular phone bills in Canada by 25 per cent.” The 25 per cent reduction figure had been a part of the Liberal platform during the campaign, but it remains unclear from what starting point the government would like to see the 25 per cent reduction, given that prices have been falling in recent years. The letter also authorizes Bains to “work with telecom companies and expand mobile virtual network operators (MVNOs) in the market. “If within two years this price target is not achieved,” the letter continues, “you can expand MVNO qualifying rules and the Canadian Radio-television and Telecommunications Commission mandate on affordable pricing.” Last month, the Competition Bureau endorsed the notion of a limited form of MVNOs, that would be temporary and “focused on incentivizing and accelerating facilities-based competition from disruptors.” The CRTC has its MVNO review scheduled for February. According to the mandate, Bains will also be tasked with “reserving space” for new entrants when it comes to future spectrum auctions. The 3.5 GHz spectrum auction is scheduled to take place sometime in 2020, and the notion of set-asides -- spectrum that the incumbents can’t bid on -- has been strongly opposed by the country’s major network operators. “Award spectrum access based on commitments towards consumer choice, affordability and broad access,” the mandate letter directs. The letter also directs Bains to work with Justice Minister David Lametti and new Heritage Minister Steven Guilbeault to “advance Canada’s Digital Charter and enhanced powers for the Privacy Commissioner.” In the release of his annual report on Tuesday, Privacy Commissioner Daniel Therrien criticized the government’s Digital Charter, launched in June, as not giving his office enough power to levy fines. The letter sets out a lengthy list of new online rights that will flow out of Bains collaboration with the privacy commissioner and the justice ministers, including data portability, erasure of personal data from a platform, review and challenge of data held by a company or the government, and data breach alerts and “appropriate” compensation. The letter also directs the minister to introduce legislation, along with the heritage minister, “by the end of 2020” to ensure that “all content providers, including internet giants, offer meaningful levels of Canadian content in their catalogues.” The question of how to tax and regulate internet giants like Netflix Inc., especially regarding Canadian content production, came up often on the campaign trail. Bains’ mandate letter goes into significantly more detail than the 2015 version. In addition to the tasks to be undertaken in collaboration with Bains, the mandate letter for Guilbeault calls on the minister to “create new regulations for social media platforms, starting with a requirement that all platforms remove illegal content, including hate speech, within 24 hours or face significant penalties. This should include other online harms such as radicalization, incitement to violence, exploitation of children, or creation or distribution of terrorist propaganda,” the letter reads. A recent Media Technology Monitor survey found that some 33 per cent, a plurality, of Canadians thought it should be up to regulatory bodies like the CRTC to monitor “fake news,” as opposed to news organizations or social media companies. Guilbeault is also directed to “strengthen the regional mandate of CBC/Radio-Canada to broadcast more local news and require CBC/Radio-Canada to open up its digital platform.” — With reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Ahmad Hathout at ahathout@thewirereport.ca

Telecom in the spotlight in new Bains mandate letter

Broadcast | December 13, 2019

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Telecom in the spotlight in new Bains mandate letter

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