Many observers of the Canadian telecommunications regulatory world have characterized the new CRTC chair, JP Blais, as sending strong pro-consumer signals – is that to say that previous chairs were anti-consumer? In an article called “Make no mistake, this is a new CRTC“, we are told “In four months, Blais has transformed the CRTC into a pro-consumer advocate, creating the kind of regulatory agency that few thought imaginable.”
Two decisions issued today signal a balance that helps to signal a greater level of predictability and stability that should give comfort to, if not encourage the investment community.
The first decision was the CRTC’s rejection of an application by Primus to delay the effective date of relaxation of regulation on certain wholesale services that were defined in the Essential Services decision of 2008.
The other decision was the CRTC’s rejection of applications by Iristel and Ice Wireless to order Northwestel to stop competing. Yes, that is really what they asked for. The CRTC’s summery states:
In this decision, the Commission denies Ice Wireless’s and Iristel’s request that it direct Northwestel to cease and desist launching new competitive services and reducing rates for existing services until the Commission has completed all proceedings related to the establishment of the competitive environment in Northwestel’s serving territory.
In the Northwestel case, it could be argued that the CRTC is just showing its “pro-consumer” bent. Of course consumers would want access now to new services and lower prices. But, I would like to think that the CRTC looks at the longer term impact, beyond the immediate gratification.
As such, what are the messages that emerge from today’s decisions? These are outcomes that are predictable, which is a characteristic that all stakeholders should be looking for. Competitors need to be prepared to compete; incumbents should be expected to get returns from their investments and respond in a competitive marketplace.
And that is what delivers long term benefits to consumers.