Opening remarks – 2014

Each year, during our opening remarks at The Canadian Telecom Summit, Michael Sone and I deliver our observations on the state of the industry.

Here is what we said earlier today:

Twenty two years of competitive telecommunications and today’s landscape of services, of providers, of modalities of communication looks nothing like it did in 1992. In fact, in many ways, telecom of the early-‘90s had more in common with the environment of the mad men and women of 1950s and ‘60s than it does with the all-digital, hyper-connected, socially-networked world of 2014. The Internet of Everything is the reality that cuts across and impacts… everything… literally. And we’ll hear all about that this week.

And yet, while wireless services flourish with new gadgets and a never-ending stream of new apps and services raising connectivity and instantaneous communication to new heights, the promise of new competition in mobile services, made possible by the AWS spectrum set-aside 5 years ago, is on the verge of collapse as independent new entrants failed to raise capital for the 700 MHz auction.

Still, each year we observe that all of us continue to use our various forms of communications more than ever; and each year we continue to increase our consumption of bits, of radio spectrum, of fiber capacity.

This continues to be the trend and it continues to raise substantive policy issues as service providers – new entrant and incumbent alike – try to stay ahead of demand and seek to invest in newer, faster, higher capacity technologies.

How do we create the right policy framework to attract and incent continued investment in Canadian telecommunications?

How do we provide a stable, predictable regulatory and policy environment? On this front, as we witnessed last summer, Ottawa failed miserably.

On both sides of the river, our regulator and policy makers in Ottawa and Gatineau are failing to provide the leadership needed to guide the development of Canada’s digital economy.

Regulatory decisions and government policy announcements show up nearly instantly as fundraising messages from the Conservative Party. It is easy to become cynical from such behavior. Last November, at its annual convention, Conservatives were told by Senator Gerstein, their chief fundraiser, that “message creates momentum creates money”.

Populism may drive healthy political donations, but questionable policy and legislation.

CASL: Canada’s Anti-Spam Legislation, is certain to discourage the use of e-commerce, not promote digital adoption.

Canada’s Digital Strategy, released a couple months ago, is more of an embarrassment, not a source of inspiration. While it was encouraging to see the Minister extend funding last week for Computers for Schools, there has been a failure in leadership at the CRTC and Industry Canada to explore solutions for getting low income Canadians engaged in the digital economy. Kids need computers at home to do homework.

How do we encourage continued investment in spectrum and digital infrastructure? How do we ensure that spectrum continues to be made available in a manner that creates an appropriate balance between the various stakeholders’ interests?

How do we balance the need to build more towers with local residents who crave 5-bars of signal, just as long as the tower can’t be seen within eyesight of their homes.

These issues are as relevant to this year’s event as they have ever been.

The sector continues to generate blockbuster news and business deals that grace the headlines. Some of Canada’s leading communications companies have had changes in leadership over the past few months – we are pleased that a number of the new CEOs are joining us over the next 3 days.

Whether it is the convergence deal like Rogers and the NHL, Bell and Astral or business transactions like TELUS – Public Mobile, companies are continuing to push the limits, risking billions of dollars in private sector capital, testing new business models for the digital age, to deliver new services to consumers and gain competitive advantages.

We need to create the right conditions for Canada to lead in a global digital economy:

• We need to drive a greater degree of digital inclusiveness for all Canadians, young and old, urban and rural, regardless of their economic station.
• We need programs to increase digital literacy and access for disadvantaged Canadians.
• We need to drive increased adoption of Information and Communications Technology in business
• We need to improve ICT adoption in all dealings with government, especially in improving the quality and efficiency of health care delivery, and
• Our customers need to be confident that they can engage online securely and with their privacy safeguarded.

As we said last year, it may be up to those of us in this room, gathered here at The Canadian Telecom Summit, representing the leading stakeholders in Canada’s innovation agenda, to develop and impart the vision to create a Digital Canada.

There is extensive media coverage of this year’s event and you can follow updates in real time using Twitter hashtag #CTS14.