In its first major decision of the year, the CRTC has given the final go-ahead to roll out broadband to more than 350 rural communities across Canada. Decision 2008-1 takes $650M that had been accumulated in excess local fees paid to incumbent local carriers (ILECs) by subscribers in urban markets and uses the money to subsidize rural broadband service.

The Commission has given the ILEC telcos two months to confirm their ability to launch service by the end of 2011 – any remaining funds get returned to urban subscribers – presumably those who have remained with the ILECs, although the CRTC has asked for proposals on how the money can best be returned.

It is a lengthy read, aided by appendices with detailed listings of communities and service areas. The Commission recognized that various technologies, including unlicensed fixed wireless services, will provide quality broadband experiences for consumers.

The ILECs are also spending 5% – or around $30M – on enhancing telecom services for Canadians with disabilities, including some innovative enhancements to classic message relay services.

There will be more to emerge on this file

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Update [January 18, 11:30 am]
Catherine McLean’s story in the Globe suggests that about half the deferral account – around $300M – will be rebated to urban consumers.

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CRTC, rural broadband, ILEC

Alec Saunders has proposed an interesting form of civil disobedience to fight against system access fees – which he calls the ‘drip feed for Canadian wireless carriers.’

He suggests that people should call the customer service lines for their service providers and just inquire about the system access fee.

It costs the carrier $25 to $30 per call to receive my call. Three or four calls per year asking about what that “system access fee” is on my statement will wipe out any profits they make from nickeling and diming me. It’s a little subversive, but it’s just the sort of thing that appeals to the Canadian in me. And perhaps if enough people did the same, the bean counting MBAs who work in product management at Canadian carriers would see the logic of discontinuing this practice.

Will Alec’s suggestion start a national grassroots campaign? We saw the potential rallying power of influential bloggers when Michael Geist triggered his Copyright Canada campaign.

Wireless service providers should start watching their call centre numbers.

Otherwise, consumers should be aware that not all wireless service providers charge the system access fees. Check out the pay as you go plans at some of the independent retailers like 7-11 or Virgin Mobile. You have a choice, and more choice is likely on the way this spring.

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system access fees, Alec Saunders

Michael Binder has been named the interim head of the Canadian Nuclear Safety Commission (CNSC).

Something about telecom policy folks, Alberta, and energy commissions lately. It was just a few weeks ago that Willie Grieve from TELUS was named the head of the Alberta Utilities Commission and now Michael is going to bring to bear his doctorate in Physics (from U of Alberta) and a career in public service to help out the embattled CNSC.

I can attest to the strong work ethic that he brings to the job. Most of the emails that I have received from him are time stamped late at night – he has always made a point of replying. Michael has earned the respect of the his peers in the global community of telecom policy agencies.

Michael has been a source of support since our first event in 2002 – he encouraged us to make The Canadian Telecom Summit into the country’s premiere industry gathering.

There is no doubt that he will bring tremendous strengths to his interim assignment leading CNSC. Still, all of us who have been privileged to work with Michael Binder through the past 20 years of dynamic changes in Canadian telecom policy will miss him.

We have been pulling together a panel for The 2008 Canadian Telecom Summit that will be looking at Net Neutrality, so I have paid closer attention to emails crossing my screen on that subject.

I took special interest last week when I was pointed to a paper by University of Minnesota academic Andrew Odlyzko. For a paper that comes out of an academic institution, I am disappointed that it is insufficiently rooted in fact-based research. Certain assertions jump from the page that I have trouble accepting at face value. For instance,

Contrary to many claims of opponents of net neutrality, networks are not very expensive to build, and some simple calculations suggest that a net neutral communications infrastructure could be viable economically.

If this assertion is true, then why are there so few facilities based market participants?

Still, the paper provides an interesting canvassing of the issues that may help provide food for thought.

We have now confirmed that Professor Andrew Clement from the Faculty of Information Studies at University of Toronto will be joining our special session at The 2008 Canadian Telecom Summit, looking at Net Neutrality.

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Canadian Telecom Summit, net neutrality

Comments in response to Industry Canada’s consultation on amendments to PIPEDA, Canada’s privacy act, are due today. Included in the consultation is an intent to clarify ‘lawful authority’ in accessing information.

I couldn’t help but smile when I read a story last Thursday about FBI wiretaps south of the border. It seems phone companies have cut off FBI wiretaps because the bureau seems to have trouble paying its bills on time.

Law enforcement agencies can have all the authority in the world, but like everyone else, you gotta pay on time.

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FBI, lawful access, PIPEDA