OPINION: CRTC must stay vigilant against potential appeals or delays by incumbent network operators

by Paul Andersen, president and chair, The Competitive Network Operators of Canada For more than a decade, the CRTC has grappled with how to make Canada's telecom market more competitive. Incumbent telephone and cable firms have long controlled the country's fixed and mobile networks, allowing them to maintain globally high prices with little threat of disruption. Past CRTC policies and reversals have failed to remedy this problem, but over the past year the regulator has taken a more assertive approach through a series of impactful decisions. Competitive Network Operators of Canada celebrates the announcement on Nov. 6, 2023 to increase and improve competitors' access to fibre-to-the-premises(FTTP) networks on an interim basis. Concerns that the interim wholesale rates set in the decision may be too high to truly compete until final rates are established with Monday’s incumbent flanker brand retail offerings, and that the limited geographic areas included in this order mean that Canadians in western jurisdictions will continue to wait for real competition. But that’s no reason for the Canadian government and regulators to falter now; they need to be ready to respond swiftly to any threat of appeal or delay by the incumbent network operators. There was a momentary period where the commitment to more competition and more fair markets for consumers seemed to falter, but CNOC would like to highlight our appreciation at the fact that the CRTC has returned to taking consistent action in recently to improve infrastructure access conditions in Canada's telecommunications market following a decade of aligned effort.. This week’s decision builds on previous moves re-starting in 2022 to increase choice and affordability for Canadian consumers. Last year saw the initial drafting of what would eventually become the 2023 Champagne Policy Direction, calling for improved CRTC decision timelines as well as new attention given to the flagging wholesale access regime. The Champagne Policy Direction is now the law of the land. But the movement forward didn’t stop there. In February 2023 the CRTC moved to improve access to telephone company poles and other infrastructure. It instituted firm timelines of 15-90 days for various steps in the pole access permitting process, depending on number of poles. This was designed to accelerate broadband network deployment, especially in rural and remote areas. The CRTC also allowed competitors to perform certain simple make-ready work on poles. In March 2023, it launched the major consultation to review the wholesale high-speed access framework with the aim of improving competition in the Internet services market that culminated in Monday’s victory for telecom competitors in Canada. The CRTC also took significant action in July 2023 to set wholesale rates for regional wireless carriers to access incumbent networks to enable the launch of mobile virtual network operators (MVNOs). What's notable is that these moves have been supported by a range of stakeholders that don't always see eye-to-eye, including competitors and incumbents. This reflects the shared view that increased infrastructure access and competition ultimately benefit Canadian consumers. This sustained focus on infrastructure access is opening the door to greater competition and choice. The interim FTTP access decision in particular will provide competitors with a pathway to offer services while the market evolves. The recent rulings constitute important steps in implementing the government’s 2023 Policy Direction to increase affordability through competition. In turn, executives of the market power wielding incumbent operators may cry "regulatory uncertainty," but that excuse does not hold water given the CRTC's clear direction over the long term. At this moment, a large incumbent is trying to leverage its immense market power to threaten a reduction in network capital investment. While a billion dollars has the initial appearance of a significant sum, more than ever there are groups looking to invest their own funds to build FTTP networks to connect people in Canada. But overall, those crying uncertainty are either not paying attention or intentionally sowing doubt. The CRTC's incremental approach shows a steady hand focused on the end goal of affordability and choice for all Canadians. That’s why it only makes sense, after lengthy consultations, the CRTC has taken action by requiring interim FTTP access for competitors. This foothold gives new options to consumers today, while longer-term frameworks continue to be developed. The CRTC is steadily opening doors, with recent decisions joining past efforts, to shape conditions that will ultimately improve competition and consumer choice. Canadians are on the verge of reaping the benefits, through increased choice, affordability and quality of telecommunications services. The CRTC has charted a clear course despite the noise. Those clinging to worn-out arguments fail to see the pro-consumer change happening before their eyes. This interim decision offers a glimmer of light in a darkening market landscape. While not the end solution, it is a tangible step when action is critically needed. The CRTC continues thoughtfully balancing the needs of facilities-based carriers and service-based competitors to encourage network growth. However, the declining state of competition demands urgent action. The upcoming February 2024 hearing will provide clarity on longer-term policies, but the CRTC has demonstrated its willingness to take decisive steps to revive competition. Improved access to FTTP infrastructure provides real progress, but further bold action cannot come soon enough. Paul Andersen is the president and chairman of the Competitive Network Operators of Canada (CNOC), and P\president of EGATE Networks, a leader in connectivity and hosting solutions. His significant roles in Internet governance include serving on the boards of the Canadian Internet Registration Authority and the American Registry for Internet Numbers, as well as being a director at the Toronto Internet Exchange. With a background in computer engineering, his work has consistently focused on the advancement and governance of Internet infrastructure. THE WIRE REPORT ACCEPTS SUBMISSIONS BY OUTSIDE CONTRIBUTORS WHO ARE KNOWLEDGEABLE ON THE SUBJECT MATTER DISCUSSED. SUBMISSIONS CAN BE SENT TO JCOCULLO@THEWIREREPORT.CA.

OPINION: CRTC must stay vigilant against potential appeals or delays by incumbent network operators

News | November 10, 2023

by Paul Andersen, president and chair, The Competitive Network Operators of Canada

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OPINION: CRTC must stay vigilant against potential appeals or delays by incumbent network operators

News | November 10, 2023

by Paul Andersen, president and chair, The Competitive Network Operators of Canada

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