Telecom Trends

For the third week in a row, a major announcement about telecommunications policy has been released by Industry Minister Maxime Bernier. Today, cabinet sent its official policy direction to the CRTC, requiring the regulator to take a more market-based approach to regulation.

Back in June, at The Canadian Telecom Summit, Minister Bernier announced a proposed policy direction to be sent from the government to the CRTC. As we have written, this was the first time that the government exercised the power it had under Section 8 of the Telecom Act.

The Industry Committee tried to delay the release of the policy direction until it had more time to study the issues. The government has chosen to move ahead without further delay, in order to further "its ambitious policy agenda for the telecommunications sector."

The Minister received input from public consultation and presentations to the Industry Committee. The most substantial change from the original proposed direction came in the section referring to wholesale access, addressing concerns that have been expressed by MTS Allstream, among others. Pierre Blouin, CEO of Allstream has already released a statement endorsing the directive:

Minister Bernier’s amended direction captures a broader understanding of the market by recognizing that fair wholesale access for competitors to the networks of incumbent telecommunications companies is essential. This will ensure robust telecom competition and technological innovation, which is a win for everyone.

We observed the importance of getting wholesale conditions right with the posting discussing the paradox of business services competition. The CRTC's essential services proceeding, lasting into 2008, is seen to be setting in place a fundamental framework for lasting, renewable competition.

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CRTC, Maxime Bernier, cabinet, TPR