In mid December, Statistics Canada released the 2009 survey of Household Spending which showed that 78% of Canadian Households have an internet connection.

What wasn’t released in the Daily was that only 81.7% of Canadian Households reported having a personal computer. So this would seem to imply that more than 95% of households with a computer are connected to the internet.

Our biggest challenge in driving increased digital connectivity appears to be getting more computing devices into the hands of Canadians.

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?

It has been a quiet 10 days where I have been in a form of electronic isolation, recharging my batteries while enjoying some time with the family.

No cell phones, no email, no daily newspapers or browsing headlines on the web. It felt good to get away, but it also feels good to be back on the air.

It is now 2011 – a year that promises to bring continued development of Canada’s digital future. Happy New Year!

Yesterday, the CRTC delivered its new rules of procedure, which can be considered to be a guidebook for participation in broadcasting and telecom regulatory processes [press release, full ruling]

3.      In recognition of the significant changes in the industries it regulates and in the technology available to conduct its proceedings, the Commission initiated a public proceeding to establish the new Canadian Radio-television and Telecommunications Commission Rules of Practice and Procedure (the Rules of Procedure). The objectives of the Rules of Procedure are to:

• enable informed and effective public participation in Commission proceedings;
• ensure the efficient, transparent and predictable conduct of Commission proceedings;
• eliminate unnecessary costs and delays in the regulatory process; and
• provide a comprehensive set of rules applicable in most Commission proceedings, while maintaining the flexibility necessary to address the specific circumstances of each proceeding.

The detailed manual is a readable, step-by-step guide to participation in regulatory proceedings. As you assemble various toys over the holidays, think of the instruction manuals. CRTC 2010-959 is like an IKEA guide without the pictures.

And hopefully, you won’t end up with any little pieces left over.

Enjoy the holiday reading. I’ll see you back here in the New Year!

The business plan for Australia’s National Broadband Network was released and it confirms that Canada is $41B and a decade ahead [pdf, 3.4MB].

Once the government invests $27.5B in equity and raising a further $13.4B in debt, in the year 2020, Australia will still have 3% of its population served by satellite-based broadband service with an additional 4% served by fixed wireless service. That is 7% of the population that won’t be reached by wired facilities after 10 years and more than $40B.

At last month’s Obligation To Serve hearings, we heard considerable discussion about how to reach the final 5% of Canadians who are beyond the reach of telco or cableco facilities.

John Maduri of Barrett Xplore criticized a proposal to create a new $7B fund for Canada:

7703   Instead, MTS would prefer you ask them to spent $7 billion on wires. The sad part of their proposal is that even with a $7 billion of wires, you will probably still need a satellite to fill in the inevitable gaps in coverage.

7704   I point to the Australian example again where with $40-plus billion to get to 90-plus percent and the balance even with that significant investment, [there is still] the need for satellite and wireless.

The NBN business plan confirms these statements. We have a vast country with many people choosing to live in sparsely populated areas. The private sector is continuing to invest in network upgrades to meet evolving demand.

In the new year, I would like to see the focus on the 20% of Canadians who don’t own a computer. As you have read on these pages [eg. here and here], I would like to see a connected computer in every household with school aged children.

I have thoughts for how this can be done in a competitively neutral manner.

Who wants to join the campaign?