Earlier this week, I was asked how Industry Canada should measure the success of its programmes designed to stimulate competition in the mobile wireless market.

After all, at this time a couple years ago, we were preparing for a spectrum auction that set-aside 40MHz that could not be acquired by the 3 largest mobile service providers, Bell, Rogers and TELUS.

Yesterday’s advanced launch by Public Mobile gives Canadians in Toronto and Montreal more choices – although it is important to note that Public Mobile bought spectrum that was not reserved for new entrants, paying bargain basement prices compared to any of their peers.

In response to a question from the media, Public Mobile CEO Alek Krstajic said that liberalization of foreign ownership rules would likely stimulate consolidation among the new entrants. Set-asides and changes to the ownership rules represent disruptions in the status quo, which brings me back to the question of how Industry Canada will measure success of actions intervening in the marketplace.

Will opening Canada’s telecom sector markets to increased foreign investment result in fewer (but potentially stronger) competitors?

Last July, the CRTC issued a joint broadcasting and telecom regulatory policy order [2009-430] setting out certain obligations to improve access to communications services for “persons with disabilities.”

Among the requirements, the CRTC gave telecommunications service providers one year to provide a new relay service – Internet Protocol Relay Service (IP Relay).

In an IP Relay call, the relay operator transmits messages via Internet Protocol (IP)-based text conversation with a person with a hearing or speech disability and via voice conversation with a person without such a disability. The person with a hearing or speech disability communicates using text with the relay operator via the Internet and accesses the IP Relay service through the IP Relay provider’s Web page or an Instant Messaging application using IP-based text messaging supported on a web-enabled device (mobile wireless phone, smartphone, web-capable telephone, etc.).

The CRTC found that IP Relay is technically possible and that there was a significant surplus of funding available from the fees collected to support the old TTY based relay service. On the CRTC’s relay service information page, the Commission describes the modernization plans:

Previously, the CRTC determined that all wireline (traditional), wireless, and Voice over IP (VoIP) service providers were responsible for giving their customers access to TTY relay service. Broadcasting and Telecom Regulatory Policy 2009-430 extends the message relay service requirements. One year from the date it was issued, all phone companies that are required to provide TTY relay service (i.e. local phone companies, wireless providers, VOIP phone providers) will be required to give customers access to IP relay service. [emphasis added]

But let’s look at the actual Order [paragraph 21 of 2009-430]:

The Commission directs all LECs, including wireless CLECs, and VoIP providers that are required to provide TTY Relay to provide IP Relay, 24 hours a day, 7 days a week, by 21 July 2010. [emphasis added]

What about wireless service providers that are not CLECs? The information page creates the expectation among consumers that all wireless service providers will provide IP Relay by July 21, but the actual order does not impose that requirement.

Also, recall the issues surrounding the CRTC’s forbearance of mobile data services that I discussed last week. If IP Relay is determined to be associated with voice services, then under Section 24 of the Telecom Act, the CRTC could order mobile providers that aren’t CLECs to offer IP Relay services. On the other hand, there may be an argument that the mobile provider’s side of the service is actually a mobile data service and the CRTC has forborne from regulating mobile data under Section 24.

People with hearing or speech disabilities should be switching to mobile services and getting rid of their wireline service. When you stop to think about the target community, their best communications device would be a mobile smart phone equipped with plan that has virtually no voice minutes but unlimited text and data. 

Does the CRTC Order fully align with the needs of these consumers?

Earlier in the month, I mentioned a story from Mobile Syrup predicting a “soft launch” for Public Mobile this week.

In fact, at 10:00 this morning, Public Mobile will be releasing new information about its launch date, its customer offers and its advertising campaign plans.

No word yet from the CRTC on the Public Mobile ownership review file. Under the Telecom Act, Public Mobile would not be able to offer “telecommunications services to the public for compensation” until after it has CRTC approval. [Theoretically, under the Telecom Act, a spectrum license holder could give its services away for free without the need for Commission approval. Of course, one might want to ask if selling a handset and then giving away airtime is considered to be offering a telecommunications service to the public for compensation.]

The CRTC had written to Public Mobile (and the other new mobile entrants) in December of 2008 – in advance of Industry Canada granting the first licenses, inviting the companies to begin the process of examination of the ownership and control requirements of the Telecom Act.

The store on the Danforth in Toronto is ready and other retail outlets are being builtout. We’ll learn later this morning if the wait for CRTC approval is what is standing in the way of service getting launched?

Not surprisingly, the FCC’s broadband plan [pdf, 11.5MB, 376 pages] is more inspirational than the disappointing executive summary suggested to me on my first reading Monday evening.

As an aside, I read that an influential thinker was quoted saying that Canada is being left behind because of a “failure of imagination.” I’ll simply agree with an implicit conclusion that Canada will benefit from progress in defining the national digital strategy, which was placed on this government’s agenda in the Speech from the Throne earlier this month. The inability to find details in the Budget should not deter us from expecting to see more in the coming months.

The Throne Speech set a broader scope than the mandate handed to the FCC last year by the US Congress.

The national broadband plan required by this section shall seek to ensure that all people of the United States have access to broadband capability and shall establish benchmarks for meeting that goal. The plan shall also include:

• an analysis of the most effective and efficient mechanisms for ensuring broadband access by all people of the United States,
• a detailed strategy for achieving affordability of such service and maximum utilization of broadband infrastructure and service by the public,
• an evaluation of the status of deployment of broadband service, including progress of projects supported by the grants made pursuant to this section, and
• a plan for use of broadband infrastructure and services in advancing consumer welfare, civic participation, public safety and homeland security, community development, health care delivery, energy independence and efficiency, education, worker training, private sector investment, entrepreneurial activity, job creation and economic growth, and other national purposes.

Contrast this language with the Throne Speech:

To fuel the ingenuity of Canada’s best and brightest and bring innovative products to market, our Government will build on the unprecedented investments in Canada’s Economic Action Plan by bolstering its Science and Technology Strategy. It will launch a digital economy strategy to drive the adoption of new technology across the economy. To encourage new ideas and protect the rights of Canadians whose research, development and artistic creativity contribute to Canada’s prosperity, our Government will also strengthen laws governing intellectual property and copyright.

Looking beyond the plumbing at what it takes to ensure leadership by Canadians in all aspects of the digital economy.

There are a number of reasons that Canada needs to look at a broader range of issues than our friends south of the border. Regardless, the resultant FCC’s plan is instructive. It should be helpful as a resource as Canada preserves its broadband leadership through a more comprehensive national digital strategy. 

On Tuesday June 8, The 2010 Canadian Telecom Summit will be featuring panels looking at International Perspectives on ICT Strategies and progress on the development of Canada’s National Digital strategy.

Have you registered yet?

The FCC offered a handy guide to its National Broadband Plan [pdf, 11.5MB, 376 pages] by way of a series of tweets. For your handy reference, here is what they said about each chapter, with links to the online version of each chapter:

• Chapter 1: It is time to connect America anew. Broadband is today’s great infrastructure challenge. We seek access for all
• Chapter 2: Goals: 100m homes w/ 100mbps; lead in mobile; affordable access; civic 1gbps; public safety network; lead in energy
• Chapter 3: Ecosystem is a cycle: apps & content drive devices drive network services. Many strong points, but can do better
• Chapter 4: Spur competition with spectrum release. Empower consumers with broadband performance labeling, like nutrition info
• Chapter 5: Spectrum: the great enabler. For mobile the need is unmistakable. Think 10 years ahead. Reform allocation system
• Chapter 6: Providers build networks on public lands. Improve utilization of existing infrastructure. Foster further deployment
• Chapter 7: Invest in R&D, long & short term. Use tax credits. Fund 1 Gbps testbeds on military bases. Urge experimentation
• Chapter 8: 2020 universalization target: 4mbps actual. Review every 4 years. Improve USF, form Connect America & Mobility Fund
• Chapter 9: Adoption:Pursue affordability. Consider free wireless. Launch Digital Literacy Corps. Make Web relevant, accessible
• Chapter 10: Healthcare: Incentivize e-care. Get better data & give patients control over it. Get centers connected
• Chapter 11: Education:Develop, broaden online learning; open content. Make use of data. Bolster e-rate for schools & libraries
• Chapter 12: Energy: Integrate broadband into the Smart Grid. Provide access to digital data; will result in lower consumption
• Chapter 13: Economic Opportunity: Small businesses should harness the Web. Promote virtual job training & placement, telework
• Chapter 14: Government Performance: Improve service delivery. Prioritize efficiency. Use government as a broadband anchor
• Chapter 15: Civic Engagement: Advance an open & transparent government. Utilize social media. Innovate. Modernize democracy
• Chapter 16: Public Safety: Create a public safety wireless network. Ensure cyber security. Roll out next-gen 911 and alerts
• Chapter 17: Plan will always be in beta. Establish a Strategy Council, a timetable for proceedings and a Performance Dashboard

More tomorrow – including relevance to Canada.