The digital economy is the economy

Earlier today, at IIC in Ottawa, ISED Minister Navdeep Bains said “the digital economy is the economy.”

There is not a single industry that digital technologies don’t touch anymore. Digital technologies underpin every sector, from fishing and farming to mining and health. That means the number of jobs requiring people with digital skills will continue to grow. Canada must do more to give people the skills and experience they need to compete in a global and digital world. In particular, we need to give every Canadian the opportunity to get online. No one should be left behind.

To succeed, Minister Bains emphasized the need for government and the private sector to make smart investments in:

  • People: Expand work-integrated learning programs, such as internships, apprenticeships and continuous learning opportunities, for Canadians at every stage of their careers—from new graduates up to the highest-ranking executives.
  • Technology: Set big-horizon goals and create broad-based partnerships to fund ambitious research projects that solve complex, large-scale problems and spark commercial opportunities for the private sector.
  • Companies: Leverage the buying power of government, as the single-largest purchaser of goods and services, to support the growth of innovative companies that have the potential to be globally competitive.

He is right. And as we move forward, there are some important lessons that we can learn from global leaders in transformation, such as David Bray.

Dr. David Bray is CIO of the Federal Communications Commission who transformed more than 200 of the FCC’s legacy information systems to award-winning technology in less than two years. His biography is worth a look.

David began working for the U.S. government at age 15 on computer simulations at a Department of Energy facility. In later roles he designed new telemedicine interfaces and space-based forest fire forecasting prototypes for the Department of Defense. From 1998-2000 he volunteered as an occasional crew lead with Habitat for Humanity International in the Philippines, Honduras, Romania, and Nepal while also working as a project manager with Yahoo! and a Microsoft partner firm. He then joined as IT Chief for the Bioterrorism Preparedness and Response Program at the U.S. Centers for Disease Control and Prevention, leading the program’s technology response during 9/11, anthrax in 2001, Severe Acute Respiratory System in 2003, and other international public health emergencies. He later completed a PhD in Information Systems from Emory University and two post-doctoral associateships at MIT and Harvard in 2008.

David volunteered in 2009 to deploy to Afghanistan to help “think differently” on military and humanitarian issues and in 2010 became a Senior National Intelligence Service Executive advocating for increased information interoperability, cybersecurity, and protection of civil liberties. In 2012, Dr. Bray became the Executive Director for the bipartisan National Commission for Review of Research and Development Programs of the United States Intelligence Community, later receiving the National Intelligence Exceptional Achievement Medal. He received both the Arthur S. Flemming Award and Roger W. Jones Award for Executive Leadership in 2013. He also was chosen to be an Eisenhower Fellow to meet with leaders in Taiwan and Australia on multisector cyber strategies for the “Internet of Everything” in 2015.

Outside of work, David was selected to serve as a member of the Council on Foreign Relations and as a Visiting Associate for the Cybersecurity Working Group on Culture at the University of Oxford starting in 2014. He also has been named the “Most Social CIO” globally in 2015 by both Forbes Magazine and the Huffington-Post, tweeting as @fcc_cio.

Frequently, David writes thoughtful pieces about digital transformation issues, such as the Internet of Everything (IoE) and Artificial Intelligence.

He writes about the need for deeper, focused substance versus the too typical reach for the quick shiny prize.

In particular, a lot of this would include rethinking beyond how we use technology tools — we need to rethink how we do the work to improve the stakeholder experience.Most importantly, we need focus on those meaningful elements of public service that need to be done to improve the United States and the world, and also focus on either automating or ending the less meaningful and often rote elements of public service that may no longer be necessary.

While startups often create a place where experiments and new ways of working can be done, several parts of public service cannot fail — which means we will need to identify a systematic, substantive approach that identifies:

  1. What parts of public service absolutely, positively must run-on-time and not fail; i.e., crucial parts of defense, the economy, etc.
  2. What parts of public service are most likely to produce significant “returns on investment” if new, better ways of doing the business of public service were found at the local, state, or national levels, and thus might be best for in-situ experiments including AI and new ways of working?
  3. What parts of public service are rote or less meaningful in today’s rapidly changing world, and thus might be best decreased, completely automated, or stopped?

He also writes about needing “better solutions to help empower individuals to make contextual choices about their privacy and what data they want to provide in return for “free” apps or other services.” He suggests interesting models for open source privacy services, “empowering consumers to decide when, where, and in what context their data should be shared with data requestors.”

He proposes open “Health of the Internet” reports:

Such a report could be akin to how the U.S. Centers for Disease Control (CDC) provides regular updates regarding the start, spread, and conclusion of the flu season each year. The CDC’s reports are anonymized, aggregated statistics. A cyber public health approach could protect privacy and improve IoE resiliency by publicly sharing the equivalent of anonymous cyber signs, symptoms, and behaviors that different IoE devices are experiencing on a regular basis.

David Bray will be speaking at The 2017 Canadian Telecom Summit, taking place June 5-7 in Toronto. He has important messages for CIOs in the public and private sectors as well as all of us concerned with technology policy. You should plan to be join us. Registrations are now open.

Hold the dates for #CTS17

The Canadian Telecom SummitMark June 5-7, 2017 in your calendars.

Planning is underway for The 2017 Canadian Telecom Summit and you need to be there. The 2017 Canadian Telecom Summit will also recognize 25 years of competitive telecommunications in Canada as it explores this year’s theme: “Competition, Investment and Innovation: Driving Canada’s Digital Future”.

The Canadian Telecom Summit delivers thought provoking presentations from the prime movers of the industry. The Canadian Telecom Summit gives you the chance to hear from and talk with them in both a structured atmosphere of frank discussion and high octane idea exchange and schmooze in a more relaxed social setting over coffee or cocktails.

The leadership of the telecom, broadcast & IT industries will converge in Toronto to discuss the key issues and trends that will impact this critical sector of the economy. Join more than 500 of your peers, suppliers, policy makers, regulators, customers and competitors in attending telecom’s most important gathering.

Now in its 16th year, The Canadian Telecom Summit has become the place for Canada’s ICT leaders to meet, interact and do business. As in past years, this year’s Summit will feature high-octane interaction, top-level keynote speakers and thought-provoking panel discussions. Plan to join us.

The 2017 Canadian Telecom Summit features cutting-edge topics for its panel discussions. With so much public attention focused on telecommunications issues, no other event is quite like The 2017 Canadian Telecom Summit in covering the industry from every angle.

The Canadian Telecom Summit has something for everyone! Hear keynote addresses from senior executives from across the industry. Meet with your suppliers, customers and peers for 3 full days of thought provoking interaction.

Among the topics that will be explored:

  • What kinds of communications infrastructure is needed to provide Canadians with a platform to excel in a global digital economy?
  • What are the characteristics of a policy framework that fosters the development of innovative new applications and technologies to deploy in Canada and offer around the world?
  • What conditions are needed to encourage investment of capital and the availability of competitive communications services to Canadian consumers and businesses, regardless of where they are located?
  • How can low income Canadians participate in a more inclusive digital future?
  • How can communications services and applications be refined and developed with a goal for competitors to offer choice and differentiated services to all Canadians?

What else would you like to see? Visit the conference website often to see how the program is developing. A number of speakers are already confirmed to be there. Book your place soon and plan to join us.

Controlling communications content

I hate getting those calls as much as the next guy. You know the ones I’m talking about: a static beep followed by the background noise of a call-centre boiler-room and the familiar words “air duct cleaning”; or, maybe it’s Jeanette from Credit Card Services with my last chance to save; or, the computer technical support department; or, the $999.99 credit I won toward my Mexican vacation resort.

Despite all the best efforts of legislation and regulation, authorities have not been able to stop the fraudsters, scammers and spammers.

In August, the FCC hosted the launch of “the Robocall Strike Force, an industry-led group that is committed to developing comprehensive solutions to prevent, detect, and filter unwanted robocalls.” Earlier in the summer, FCC Chair Tom Wheeler pledged to cut off robocalls, saying “Robocalls and telemarketing calls are currently the number one source of consumer complaints at the FCC.” At the final meeting of the Strike Force the update identified a number of areas where work activities remained open, including:

  • Consumer Access to Free Call Blocking & Filtering Solutions
  • Development of Network-to-Device Information Sharing Framework
  • Deployment of VoIP Caller ID Authentication

In Canada, the CRTC launched a consultation in July 2015, “Empowering Canadians to protect themselves from unsolicited and illegitimate telemarketing calls.” That resulted in the production of a summary database of “options and features that are currently available to help Canadians protect themselves from unsolicited and illegitimate calls.” Let me know what you think of the usefulness of that website.

Also arising from that consultation, earlier this week the CRTC issued Compliance and Enforcement and Telecom Regulatory Policy CRTC 2016-442, stating “The Commission finds that the technical solutions available to Canadians to protect themselves from unwanted unsolicited and illegitimate telecommunications are not sufficient.” The CRTC has asked CISC (the CRTC Interconnection Steering Committee) to “develop practices to block blatantly illegitimate calls at the network level”, effectively providing a Section 36 authorization for Canadian carriers to block calls. CISC is to report back within 90 days – early February.

What are blatantly illegitimate calls?

Blatantly illegitimate calls include calls that purport to originate from telephone numbers that

  1. match the telephone number of the person being called;
  2. are “spoofed” with a number that is local to the person being called, in the case of an incoming long distance call; or
  3. do not conform to the North American Numbering Plan (i.e. are non-dialable telephone numbers [e.g. 000-000-0000]).

There are clear problems with this. The CRTC justified its definition with a bit of bizarre logic.

  1. These three specific circumstances account for up to 35% of all complaints filed with the National DNCL Operator in 2015. The Commission considers that universal blocking of these types of calls would be consistent with
    • the UTRs, which require telemarketers to identify themselves and provide a telecommunications number where the originator can be reached; and
    • Telecom Decision 2007-48, which states that telecommunications numbers must conform to the North American Numbering Plan in order to be registered on the National DNCL.

Hold on. What is with the second bullet? Getting registered in the Do Not Call List refers to me, the person receiving the call, not the person calling me. Decision 2007-48 effectively says that Canada’s Do Not Call List is for Canadian phone numbers. Further, with respect to the first bullet, the logic only makes sense if the originator is a telemarketer. What if it is my daughter calling me from overseas? The CRTC has no control over the phone company or app with which she makes her call and by definition, as an overseas call, the originating number cannot conform to the NANP. A caller ID from outside North America cannot and should not conform to the North American Numbering Plan. Incoming calls from various long distance companies, or from VoIP apps (such as Skype and others), can deliver a range of non-conforming caller IDs. Will these be captured by the CRTC’s blanket ban?

While the CRTC claims the “use of universal blocking to prevent calls with blatantly illegitimate caller ID information also strikes an appropriate balance between the protection of individual privacy and the need to permit legitimate uses of telemarketing telecommunications”, it appears that there are bound to be legitimate calls blocked that did not originate from telemarketers.

As the Commission itself recognizes in the discussion about universal blocking:

  1. A number of parties expressed concern that universal blocking could prevent legitimate calls from reaching their intended recipient…

  1. Eastlink, Primus, and trueCall argued that universal blocking, if implemented broadly, would not reflect the distinct preferences of individuals, given that all calls would be blocked at the network level (i.e. affecting all subscribers) and that the blocking could not be customized by the consumer…
  1. Carriers generally argued that universal blocking is ineffective at combatting nuisance calls from callers who constantly change the numbers that they display on caller ID, which makes it difficult to determine which calls should be blocked…

So the CRTC is sending this off to CISC:

  1. Accordingly, the Commission requests CISC to
    • identify and develop a comprehensive list of attributes of calls that indicate blatantly illegitimate caller ID information and that can be universally blocked;
    • identify potential unintended consequences of universally blocking calls based on the list of attributes identified above;
    • as required, develop redress mechanisms to prevent and remediate these consequences when universal blocking is deployed, and approaches for monitoring their effectiveness; and
    • provide a report of its findings on the above to the Commission within 90 days of the date of this decision.

A much bigger scourge is that of phishing, with scammers spoofing the originating source of emails. Ottawa Police is circulating an educational video as part of an education process for users to recognize fraudulent messages. Should the CRTC be ordering ISPs to block blatantly illegitimate emails?

Ultimately, these efforts by the CRTC and by the police point to the ineffectiveness of legislation and regulation such as Canada’s Anti-Spam Legislation and the Unsolicited Telecommunications Rules. Hopefully, CISC will report back about the risks of blocking legitimate calls from ordinary citizens and we can move on. But we need to consider the unnecessary costs these rules have imposed on legitimate businesses while the perpetrators of fraud and genuine consumer annoyances continue their practices unabated.

While it would be nice to find a regulatory solution or a novel technology, I continue to believe the most effective way to deal with nuisance calls was invented more than 130 years ago. Just hang up.

Diversity of views

A couple quick thoughts in the wake of last night’s election in the United States.

Derek Thompson, Senior Editor at The Atlantic observed that it is appropriate for some humility about the ability to influence public opinion:

I noticed a tweet that said that no one in that person’s timeline was excited about seeing Trump win. To me, that is a problem. So I replied, saying “I tend to learn a lot by reading things that can sometimes make me angry”:

In August, I wrote about this phenomenon (Reading just what we want or what we need?), asking “How do we encourage reading alternate perspectives, consideration of dissenting viewpoints, and engaging in cooperative dialog?” It is a real challenge when we self select digital news feeds, or get algorithmically selected articles served to us on social media based on what is perceived to be what we want to read. Perhaps the advantage of print media was the enforced diversity of views based on bundles of content including more than what we want.

Aren’t our minds nourished by snacking on opposing views once in a while?

What we learned about differential pricing

Last week’s CRTC hearing to examine differential pricing practices related to internet data plans highlighted many areas of confusion among Canada’s regulatory professionals.

Outside of the ISP community, many people seem to think that data tiers (often erroneously called “caps”) were created for traffic management. The misunderstanding may arise from the CRTC’s approval of such retail pricing mechanisms as a traffic management tool. As described by Xplornet (among others) tiers are not defined by the network organizations; rather they are primarily a creation by marketing departments to create a range of product options for consumers at different price points.

Data tiers are a very coarse method of managing congestion, in that they can be seen, especially on the wireless side, to constrain demand. Rogers explained last week, “traffic incurs costs, causes costs. So if you had unlimited traffic, in effect you would have unlimited cost.” Data tiers are a means to monetize the network investment in a way that those who want the capacity for more traffic pay more toward those costs. Of far greater import is the popularity of data tiers when unlimited plans are available. for example, Eastlink told the Commission that the vast majority of its wireline internet subscribers had unlimited data plans. Rogers said 40% of its wireline internet subscribers are signing up for unlimited plans.

Despite wide availability and high levels of adoption of unlimited data plans, there are some consumers who choose a lower priced option. Such tiers existed before the CRTC’s internet traffic management decision in 2009 and continue to exist as a means of price differentiation so that consumers can select which plan is best suited for their situation.

Open Media wants to deny that choice to consumers, asking the CRTC to ban data tiers. That makes no sense. At any price point for an unlimited plan, there will be consumers who would benefit from a lower priced option that includes some lower level of data. How can consumers benefit from losing choice? And, as a number of parties indicated to the CRTC, eliminating data tiers would result in price increases for the majority of customers.

Another area of misunderstanding was whether negotiations were required in order for an ISP to cease charging “per byte” for a particular application, a practice known as “zero-rating”. The confusion may have arisen from a casual read of the submission by TBayTel, where it says “This type of arrangement is possible to negotiate when the ISP has sufficient scale and market power but not for small providers like Tbaytel and many others.” However, TBayTel was refering to “sponsored data” with that statement, the practice where “ISPs are compensated by the application providers”. To zero-rate a particular app or data stream, no negotiations are required. The ISP simply stops charging for those bytes for a certain class of users. TBayTel has offered zero-rating to its customers, with a $15 flat rate for Blackberry users to have unlimited social networking.

TBayTel had been cited by a number of parties as saying it was too small to negotiate arrangements for zero-rating plans. The Independent Broadcast Group told the CRTC that TBayTel said it doesn’t “have the resources really to go out and put together an unlimited music type service or similar things that the big guys could do.” In reality, any ISP could implement zero-rating plans as a promotion without consultation or negotiations with the relevant applications.

Videotron said:

Écoutez, on ne niera pas que certains de nos concurrents seraient peut-être plus rapides ou d’autres moins rapides à pouvoir nous copier ou pouvoir lancer quelque chose de semblable, mais je vous répondrais que c’est un peu la dynamique de marché et que tant mieux.

Differential pricing is a means of offering targeted promotional pricing to attract or retain a certain demographic of customers. In a competitive marketplace, differential pricing provides increased choice. Such plans are optional and do not limit customers from accessing any other content. As I wrote before (see A matter of choice), Open Media’s claim that the practice “makes websites they don’t like slower” is simply not true. This false claim was part of its campaign to solicit support for its position in the proceeding. Given the false premise, one might question the support it garnered to oppose a pro-consumer choice practice.

As I have said many times before, differential pricing does not inhibit access to any content, it raises prices for no one and reduces costs for some. Banning the practice will reduce choice in the marketplace, raise prices for some and lower prices for no one.

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