In a forborne environment, what is the role of the CRTC in telecom?
That is a question some are asking in the wake of the December 11 announcement by the Minister to propose a variance in the rules for local telecom service forbearance.
We have already seen that there will be a few challenges operationalizing the intent of the variance. As I wrote last Thursday, it is not yet clear what the criteria will be for business services. For the next few years, the CRTC will assess applications against these factors.
We suspect that the proceeding to assess wholesale essential services, launched in November, will be even more important in a forborne environment, in order to ensure sustainable competition. As described earlier in the week, the recognition of the importance of the wholesale regime found its way into the modifications made in the final version of the Minister’s policy direction this past Monday. Yesterday, the issue of billing and collection rates is an example of the types of concerns some industry players will have in the determination of which elements are in fact essential.
Access to essential facilities, at a fair price, even in an environment with facilities-based competitors, will ensure that resellers and new entrants can continue to discipline the marketplace, maintaining incentives for innovation and price competition for consumers. It remains the responsibility of the CRTC to regulate the wholesale access regime.