Consumer Friendly Competition

When the CRTC released its original long distance decision in 1992, the title on the cover and their press release was “Consumer Friendly Competition.” If that terminology hadn’t already been used 14 years ago, it would have been an appropriate title for today’s release from the Telecom Policy Review panel.

While there are voices from the fringe that are deeply critical, the report of the Telecom Policy Review panel is a thorough and detailed ‘Modern Telecom Policy for Dummies’ handbook, with step-by-step instructions telling Canada that “you too, can be a 21st century economy.” We can quibble about the details (and there are so many details in the 400 pages that everyone will find something to quibble about), but let’s be clear, this report is well thought out and holds together nicely.

There is a vision of an open marketplace that repeats throughout the report. Empowered, connected and protected consumers. Carriers that have freedom to compete and seek funding from global markets.

The report expresses confidence in market forces being brought to the forefront – not to benefit telco or cableco shareholders – rather, these are changes to better position Canada’s overall competitive position. Electronic Communications Networks (a European term that captures all types of infrastructure) are critical inputs for a modern economy. It turns the presumption of regulation upside down.

Therefore, we concluded that it’s time to reverse the current presumption in the Telecommunications Act that all services should be regulated unless the CRTC issues a forbearance order. This should be replaced with a presumption that telecommunications services will not be regulated except in specified circumstances, where regulation is clearly necessary to protect consumers or to maintain competitive markets. [opening remarks of Hank Intven]

The panel clearly is trying to encourage more players at the facilities level, opening up our markets to foreign capital and investment in order to create a better environment for innovation and price competition. Mobile wireless was specifically cited as not delivering sufficient benefits and there are a host of recommendations to try to fix that important growth area.

Consumer friendly competition. This report is a good read. Will it all be implemented? Who knows. Should it all be carefully considered? Absolutely.

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