The Supreme Court has upheld the CRTC’s authority to determine how to dispose of the Deferral Account, providing a rebate to consumers of portions not approved for broadband expansion. Judge Rosalie Abella, writing on behalf of the nine-member panel, said:
A deferral account would not serve its purpose if the CRTC did not also have the power to order the disposition of the funds contained in it. The CRTC did exactly what it was mandated to do.
The CRTC’s hearings into the compliance with Canadian ownership and control requirements for Globalive open next Wednesday at 9:00 am.
In a letter earlier this week, the Commission identified the key issues to be explored during the hearings as:
Financing arrangements of the Globalive venture
The level of Orascom’s economic participation in the Globalive venture
The relative experience of the shareholders
Shareholder rights
liquidity rights
Thresholds for veto rights
Boards of directors
Nomination and appointment
Role of Independent Directors and Independent Canadians
The management and governance of Globalive
Advisory services agreements as between Globalive and Orascom
I was asked by a reporter if the incumbents are using the regulatory processes as a means to block or impede competitive entry into the market. I replied that I don’t see the regulatory approvals as being on the critical path to launch. It is a parallel process.
As we described when the CRTC set up this process in July, the focus can be expected to be Section 16(3)(c) of the Telecom Act: “the corporation is not otherwise controlled by persons that are not Canadians.”
It seems reasonable to ensure that all carriers are operating under the same rules. There is a cost associated with restrictions on foreign investment. If there are new ownership structures that conform to government rules and can permit greater access to capital from abroad, then all service providers should be able to lower their cost of money.
When it created a set-aside for new entrants to acquire spectrum, the government did not elect to relax restrictions on foreign ownership – which would have been another lever to incent increased competition.
We’ll learn next week about how far the boundaries can be stretched.
XM Radio has a station called “The Bridge” – channel 27 – that has become a fixture in my car. It may not match your taste, but the playlist defines my college listening and I can’t help feel that someone has programmed it just for me.
Sure, I could load up an iPod and play my tunes, but I don’t own everything from that period – every so often, there is a cut inserted that reminds me of a missed purchase from 30 years ago.
That is the real point of this posting. In a universe of digital radio or digital TV, it is more possible for programming to target micro-markets. Not all entertainment – music or video – can or will necessarily be pulled by users. Such a model misses the opportunity to be introduced to the unknown.
My kids are part of a download on-demand generation. My son hasn’t subscribed to a broadcast TV service for 6 years. While touring the beaches with him this past weekend, I mentioned a Malibu-based TV series that he had never seen, despite the show being a hit for years. We spent part of Saturday night watching the pilot and the first few episodes. He had no idea what he had been missing. Streaming is letting him catch up.
Broadcasting, on-demand streaming and bulk file transfers: the interplay of these modes of acquiring content generates significant implications for networks, not just content distributors.
As user tastes shift, will network operators have sufficient flexibility to deliver content the way users want? Flexibility in technology, in policy, in dealing with users’ requirements.
Ontario’s driving while phoning is coming into effect soon. Mobile Syrup reported on a new Angus Reid study, commissioned by Sony Ericsson, that shows 90% support for the ban on hand-held communication and entertainment devices while driving.
Michelle Digulla, General Manager for Sony Ericsson Canada, was quoted saying:
Our experience shows that legislation of this sort creates a rush on handsfree mobile phone accessories as drivers try to find a solution that fits their needs. We anticipate sales to increase dramatically given our wide range of handsfree options and leadership in Bluetooth technology.
There are a bunch of interesting technology choices out there.
Last year, I wrote about an interesting solution by Waterloo-based IMS providing handsfree integration with Blackberry mail functions.
I have recently started using a Bluetooth equipped rear-view mirror, from Montreal-based Bluesky Tech. It can broadcast over FM or use built-in speakers. An earbud is magnetically attached on the side of the mirror if you need to switch to a more private conversation.
Forbes had a commentary last week that takes aim at the flawed OECD wireless study. I have written volumes about how various groups have ignored the methodological errors that resulted in the US being ranked as having the highest cost of mobile services – with Canada not far behind.
The report, which gained considerable attention last month, is deeply flawed, its startling conclusion essentially worthless.
At what point will even the most strident critics of Canadian communications policy acknowledge that citing the outcome of such an error-filled report is an embarrassment.
