Building better networks

We all want 5 bars on our mobile devices, but no one seems to want a tower within sight. We want faster broadband connections, but without digging up our roads.

Across the country, neighbourhood groups have mobilized against carriers seeking to improve their wireless coverage [see for example]. More than 3 years ago, the Federation of Canadian Municipalities issued a report “Highway Robbery: How Federal Telecom Rules Cost Taxpayers and Damage Public Roads” (see my post from that time).

Against this backdrop, how do we advance the state of digital infrastructure?

The CRTC has issued a public notice, launching a proceeding to consider a model Municipal Access Agreement.

The introduction of competition in the provision of telecommunications services has led to an increase in the number of carriers in the industry. Concomitantly, there has been an increase in the demand for access to municipal rights-of-way, such as street crossings and other municipal property, for the purposes of installing, operating, and maintaining transmission facilities.

With this consultation, the Commission is looking to develop a model agreement through a two-step process. First, this public consultation seeks input on what types of considerations should be part of the model agreement and what policy matters need to be addressed in respect to access to public property. In the second step, the Commission envisions establishing an ad-hoc working group to develop the terms and conditions to be included in the model agreement, based on the results of the first step.

Managing traffic management

The CRTC took steps yesterday to improve its complaints resolution process for internet traffic management practices [press release, information bulletin]. CRTC Chair Konrad von Finckenstein was quoted saying:

The policy sets out clear ground rules, which we expect all ISPs to follow,” said Konrad von Finckenstein, Q.C., Chairman of the CRTC. “The guidelines we issued today will help Canadians understand which practices are permitted and how to make a complaint. We will require ISPs that are not following the rules to take corrective action as quickly as possible.

When receiving a complaint regarding an internet traffic management practice, CRTC staff will seek a response from the ISP in question. If the ISP fails to respond or bring itself into compliance, the CRTC will take further action, such as meeting with the ISP, on-site inspections, independent third-party audits, or calling the ISP to a public hearing.

Very little has been said about the potential for use of “independent third-party audits.” The CRTC, in paragraph 19 of the Information Bulletin, says that it may “initiate an on-site inspection or independent third-party audit to obtain additional information” – not just in response to an individual complaint, but also based on an observed pattern of complaints.

Should the CRTC determine that an ISP is not in compliance with its ITMP policy – set out in 2009 – it will publish the company’s name and the nature of the complaint. In addition, the CRTC will publish quarterly summaries of the number and types of complaints it has received, including the number that have been resolved and those that are still under investigation.

The CRTC does not have the power to fine – or charge “administrative monetary penalties (AMPs)” – for violations, so it is largely left to rely on pressure by negative public relations. But it can back up its order by registering it with the Federal Court, including the ability to reimburse the client, under Section 51 of the Telecom Act.

Section 51 is worded in a way that can cause you to pause with wonder at the powers of the Commission:

The Commission may order a person, at or within any time and subject to any conditions that it determines, to do anything the person is required to do under this Act or any special Act, and may forbid a person to do anything that the person is prohibited from doing under this Act or any special Act.

Ignoring an order from the commission, once registered with the court, is contempt. In other words, don’t expect service providers to take a Commission order lightly. And don’t expect service providers to look forward to the prospect of independent auditors wandering through their networks.

Who has what?

A technology trends study was released yesterday by the Media Technology Monitor that found usage and buying habits range significantly across the country.

Vancouverites are the most likely to use the Internet at home, Toronto has the most gadget users, and East Coasters are the least likely to have a house full of tech toys

While disposable income levels certainly play a role in regional disparity, other demographic factors, such as age might also be correlations worth examining.

About 91 per cent of Vancouver residents over 18 have Internet access at home, compared to the national average of 85 per cent among anglophones, and 80 per cent of francophones living in Quebec. Those least likely to have Internet access at home were francophones living outside Quebec, with only 71 per cent connected. They also had the highest usage of old-fashioned dial-up access.

What factors can be stimulated to increase technology adoption in below-average segments?

Integrated Services

Any of you remember the promise of ISDN? Integrated Services Digital Networks were the rage in telecom design in the late 1980s, promising to make our phone lines run faster and jump higher, integrating voice data and image.

That is a 25 year old technology story, and it is a tale that may have given birth to media convergence a generation ago. That “C”-word led to the premature demise of a number of corporate titans, so we now tend to speak in terms of vertical integration. In its consultation document, the CRTC defined the term as follows:

“vertical integration” refers to the ownership, by one entity, of both programming and distribution undertakings, or, both programming undertakings and production companies.

In other words: cable or satellite companies that own TV stations; or TV stations that produce programming; or presumably all three together. Five years ago, I wrote about what I saw then as the ultimate in convergence in the opening episode of 30 Rock, a show that later enjoyed a full year of story lines parodying the approval of NBC’s acquisition by Comcast. I wrote about this again in June, just before the oral hearings [includes link to interview with CRTC Chair at this year’s Canadian Telecom Summit].

In any case, the CRTC has decided [from its press release]:

Following its examination of consolidation in the broadcasting industry, the CRTC has decided to:

  • Prohibit companies from offering television programs on an exclusive basis to their mobile or Internet subscribers. Any program broadcast on television, including hockey games and other live events, must be made available to competitors under fair and reasonable terms.
  • Allow companies to offer exclusive programming to their Internet or mobile customers provided that it is produced specifically for an Internet portal or a mobile device. This includes supplementary programming such as behind-the-scenes video clips of a television program, as well as original content.
  • Adopt a code of conduct to prevent anti-competitive behaviour and ensure all distributors, broadcasters and online programming services negotiate in good faith. To protect Canadians from losing a television service during negotiations, broadcasters must continue to provide the service in question and distributors must continue to offer it to their subscribers.
  • Implement measures to ensure that independent distributors and broadcasters are treated fairly by large integrated companies. At least 25 per cent of specialty services distributed by a large integrated company must be owned by an independent broadcaster. In addition, broadcasters launching a new pay or specialty service must make it available upon request to all distributors as an individual service, even if a commercial agreement has not been finalized.

The CRTC strongly encouraged cable and satellite TV companies “to give Canadians more flexibility in choosing the individual services they want as part of their packages” and has called on Bell, Quebecor (Videotron), Rogers and Shaw to report back by April 1 to detail “the steps they have undertaken to respond to consumer demands.”

The full decision can be found here. The first Appendix to the decision contains a “Code of conduct for commercial arrangements and interactions” and there are statements in other parts of the decision concerning a wide variety of issues, many of which will be the subjects of follow-up proceedings, as detailed in the second Appendix.

Vision for a Digital Economy

Over the past few days, Industry Minister Christian Paradis has delivered two addresses that touch on the national digital strategy. Interestingly, I found that more was said in his remarks to the Canadian Chamber of Commerce annual general meeting last Sunday in St. John’s than in his comments yesterday at the CWTA’s Wireless Canada Technology Showcase in Ottawa. [Note: the Minister’s Wireless Showcase speech was delivered with substantial ad libs and rearranging of the order of the prepared remarks. You can watch the speech beginning at the 8min mark of the Welcoming Remarks video here.]

In Newfoundland, following a discussion of increasing R&D investment by the private sector, Minister Paradis continued with a number of points focused on the Digital Economy:

The digital economy includes everything we can or would like to do online. It includes the creation, supply and use of digital content and technologies that enable everyday life and innovation.

At the heart of the digital economy are information and communications technologies (ICTs)—everything from the personal computer in your home to the multi-purpose mobile devices that many of us can’t seem to live without. Those in the room with teenagers at home already know all too well about that.

When individuals, companies and entire economies adopt these technologies, a number of important things happen. Adoption boosts productivity, accelerates innovation and generates new products, processes and business models.

The value of these technologies is self-evident. And the federal government will do its share to promote adoption of these technologies. We will be launching a new program, announced in the last budget, to promote adoption by small businesses using community colleges as partners.

We will be tabling new legislation on copyright and privacy to ensure that Canadian businesses and individuals have the legal protections to confidently and fully engage in the digital economy. We are boosting our support to increase university capacity in key digital skills disciplines. And this fall, we will be announcing the actions we will take to release more mobile broadband spectrum, thereby ensuring a world-class communications infrastructure in Canada.

But Canada will succeed as a world-leading digital economy only if government and the private sector work together. We look to the support of Chambers of Commerce like yours to ensure that Canada has a world-class digitally skilled workforce and that businesses in all sectors of the economy make smart investments in digital technologies to improve innovation and productivity.

We need to take concrete actions now to lay the foundation for Canada to regain leadership as a digital economy.

In his Ottawa address yesterday, the digital economy was addressed through references to infrastructure and legislation to encourage innovation and adoption of information and communications technologies.

we will be moving our agenda forward this fall in Parliament with the reintroduction of legislation on copyright modernization and privacy amendments. Our legislation will give Canadians the confidence and the full protection of the law that they need to fully engage and participate in this transformative new economy.

It was in the middle of the Wireless speech that we saw more than implementation details – the vision statement:

We envision a Canada where our digital infrastructure is on the leading edge and our businesses and consumers are early adopters. Where our workers have the skills to thrive in this digital economy, and our companies are the technology manufacturers and suppliers to the world.

How do we get there? How will government leadership influence the velocity of digital literacy and adoption?

Scroll to Top