On Wednesday, I wrote about the manner in which the government has proposed to amend the Telecom Act in order to permit increased levels of foreign ownership of satellite companies operating in Canada.

In effect, I wrote that the proposed language means that it will be possible for a foreign-owned company to be approved as a Canadian carrier – with all of the benefits and obligations associated with that designation – as long as the ownership of transmission facilities is limited to a list set out in Section 16(5): international submarine cables; earth stations that provide telecommunications services by means of satellites; or satellites.

As I wrote, for as little as an investment in a $200 satellite dish, resellers may be able to gain access to Canadian number resources and lower their interconnection costs, thanks to “bill-and-keep” facilities.

What if the government added mobile wireless network equipment and spectrum as a fourth category of section 16(5) exempted apparatus? Would this be a simplified way to introduce liberalized foreign ownership for new entrants who still have fairly basic elements in their network configurations?

This approach could theoretically enable the existing integrated carriers to rearrange their businesses to separate the mobile assets, allowing more foreign direct investment in a purely mobile subsidiary, but it is not clear that there would be sufficient benefits to offset the restructuring.

Just saying.

My conference co-chair Michael Sone and I are excited to announce that The Honourable Tony Clement, Minister of Industry, will be delivering the opening keynote address to The 2010 Canadian Telecom Summit, on the morning of June 7. Our opening remarks are now going to take place at 8:20 am so that Minister Clement can speak at 8:30 am.

Breakfast and registration opens at 7:00 am on June 7. Delegates should be sure to arrive on-time to hear the opening address starting promptly at 8:30.

Now celebrating our 9th year, The Canadian Telecom Summit is Canada’s leading industry event, attracting more than 500 of the most influential people who shape the future direction of communications and information technology and services in Canada.

For 3 days, The Canadian Telecom Summit delivers thought provoking presentations from the prime movers of the industry from around the globe. This is your chance to hear from and talk with them in both a structured atmosphere of frank discussion & high-octane idea exchange, and network in a more relaxed social setting of genial conversation over an espresso or cocktail.

The Canadian Telecom Summit features keynote addresses by leading Canadian and international wireline & wireless service providers, information technology companies, global equipment suppliers, and government policy & regulatory decision makers.

This year’s theme, New Economic Realities, New Approaches: The Communications Industry in Transition, is one that is sure to engender substantive and lively discussion. Discuss what technology and marketing facilities are in development to address changing needs, and how suppliers are positioned to meet customer demands.

Join us June 7-9 in Toronto to hear perspectives on the direction of the industry, with engaging discussions on broadband initiatives & services, mobile service & device development, mobile commerce trends, next generation technology direction, new business models, advanced wireless services, competitive dynamics, content development & adoption and policy evolution, including a special focus on Tuesday, June 8 looking at the development of Canada’s national Digital Strategy.

The 2010 Canadian Telecom Summit opens in two months.

Have you registered yet?

Section 16 of the Telecom Act has the ownership and control provisions. 

A friend pointed me to the proposed changes that are part of the Budget bill [scroll down to Part 23 of the link]:

If the government merely wanted to exempt satellite operators, it seems they need only have changed 16(5) to add “satellites” to the list. But the proposed legislation does more as 16(1)(b) expands the definition of who can operate as a “Canadian carrier.” As a result, it expands the definition of who can receive the benefits accorded only to Canadian carriers. What is the purpose of the proposed new 16(1)(b)? Does it foreshadow further contemplated changes?

So what does this all mean? There are a few implications that I think could be interesting.

Hypothetically, the new rules could allow a number of foreign controlled carriers to become CLECs in Canada. Here’s how – an owner of an international submarine cable, an earth station, or a foreign owned satellite could establish a presence in Canada sufficient to make it “subject to the legislative authority of Canada”. This Canadian presence combined with operations as a telecommunications common carrier (via permitted s. 16(5) transmission facilities) would meet the definition of “Canadian carrier” under the Act.

CLECs have to be Canadian carriers but they do not actually need to own or operate any other transmission facilities to operate as a CLECs – rather, they can (as many CLECs do) lease what they need from the ILECs for interconnection and enjoy all of the CLEC benefits, such as bill and keep interconnection and access to Canadian numbering resources.

The proposed change to Section 16(1) would allow any company – foreign or domestic – to set up a Canadian subsidiary, and for the cost of a $200 satellite dish (an “earth station” under Section 16(5)(b)), under the new 16(1)(b), they are eligible to be Canadian carriers.

Was this the intent of the proposed 16(1)(b), or is it an unintended consequence?

Greg O’Brien at CARTT wrote a tough commentary last week [no paywall required here] on the inevitable impending failure in meeting the August 31, 2011 deadline for ending analog TV over-the-air broadcasting. Last year, the CRTC relaxed the rules, only requiring that broadcasters in markets bigger than 300,000 people as well as the provincial and territorial capitals have to be digital by August 31st 2011.

The broadcasters are almost certainly going to miss that timetable as well.

The spectrum that will be freed up by the digital TV transition has characteristics that are especially valuable for mobile services, including broadband services. The 700 MHz band, which is mentioned in Industry Canada’s workplan for the current fiscal year, was sold in the US in 2008 for about $20B (the US cleared analog TV broadcasting a year ago).

According to Greg’s commentary, Industry Canada is saying that Heritage Minister Moore is prime for this file – responsibility for the Broadcast Act generally falls to that Ministry. But the re-purposing of the spectrum and the auction will be under Industry Canada. The CRTC adds a third set of hands in the national capital region to stir the pot.

If the spectrum availability isn’t uniform because of delays in broadcasters vacating the band, what will be the impact on the rollout of national services? Will this impact the level of interest from mobile service providers? Will Industry Canada wait for new foreign ownership rules to be in place before auctioning off what has been called “beachfront” spectrum because of its especially attractive characteristics?

Greg O’Brien is moderating the annual Regulatory Blockbuster at The 2010 Canadian Telecom Summit, on the morning of June 8. These issues, and more, will be certain to be part of the fireworks. The 2010 Canadian Telecom Summit opens in just 9 weeks.

Prices are going up in May. Have you registered yet?

A Canadian Press story is on the wires talking about an upcoming consultation for Canada’s digital economy. I thought it was telling that the story concluded talking about rural connectivity. A story in the weekend Globe and Mail also talks about the digital divide, looking at connectivity.

As people turn their minds toward Canada’s version of the FCC’s 100M² vision for the United States [100 million homes connected to 100Mbps internet], I was wondering if too many people are too narrowly focussed on plumbing, rather than stepping back to look at the bigger picture. The CP story talks about the federal consultation being broadly focussed – with participation from federal departments.

Clement will be joined by Heritage Minister James Moore for a look at improving digital content, and by Human Resources Minister Diane Finley, who will examine how well Canadians are trained at using and creating new technologies.

This kind of broad perspective is needed. I often find that too many people are confusing specific access technology solutions with requirements. I have written before about how frequently people define their needs in terms of a familiar solution, but that often results in constraints on imagination in developing more creative proposals.

If you go to a hardware store looking for nails, you are never going to consider more advanced, more elegant, perhaps stronger ways to put two pieces of wood together. Nails are only one particular technology that may not always be the best solution.

If we define our broadband needs in terms of a specific technology, we will fail to consider all of the more creative solutions that could possibly be a better fit. So, when people say that we need one particular technology to solve the broadband challenges, we need to find better systems engineers who can more appropriately define the problem in terms of the real requirements.

As Canada approaches its 150th year in 2017, I would like to see a grander vision than just plumbing – especially a focus on a specific broadband access technology. The United States didn’t put people on the moon by saying that it needed to design a Saturn V rocket. That is why we need a broader digital vision – the kind we can hope will emerge from the upcoming consultation. If we think that Canada’s role in the digital economy will be set by just installing plumbing, then we will have nothing more than a high speed outhouse, competing against more broadly based digital strategies.

The 2010 Canadian Telecom Summit opens in two months and it will feature panels looking at International Perspectives on ICT Strategies and progress on the development of Canada’s National Digital Strategy.

Have you registered yet?