While we were gone

OK. It is time to return to reality after a couple weeks of downtime with family.

While I was enjoying warming temperatures, apparently PIAC released a report that is trying to put a chill on Canada’s government policy that favours allowing the marketplace to discipline the communications sector. As the PIAC release states:

PIAC’s report recommends that the government rescind the Policy Direction of December 2006, and establishing a licensing regime for all carriers with codes of conduct in place for all licensees. It also recommends reforms to the CRTC operations, including the establishment of more powers and resources recommended by the Government’s Policy Review Panel Report of 2006.

The full report [pdf, 3 MB] is entitled Waiting for the Dream: The Consumer Case for Telecom Reform and Results-Based Regulation. My initial impression is that the document ignores 20 years of consumer benefits that have been yielded from competition in the communications sector.

Do any of us even think twice about making a long distance phone call. Certainly not to anywhere in North America or to most of the rest of the places Canadians call.

Here is an example of the type of language characteristic in the report:

Industry governance since the development of telephone networks has been profoundly influenced by the strategic action of stakeholders, in particular the major incumbent local exchange companies, (ILECs), the largest of which was the Bell Telephone Company of Canada, or later, Bell Canada. This action included lobbying with politicians and successful persuasion of the regulator concerning the recovery of revenues from customers and the exclusion of competitors from essential facilities.

Come on, now. Consumer groups and competitors have been among the stakeholders lobbying and participating in every regulatory and government policy and judicial  proceeding. PIAC has been active and has been funded by governments and by industry players to ensure that diverse voices are heard.

How would greater regulation result in lower costs? The CRTC regulates wholesale access already. While some new entrants may not like the outcomes of some of the proceedings, what specific areas need increased regulatory intervention?