Coming back to bite

January 25, 2017

The Government handed down a final policy direction to the CRTC on December 18. A direct impact of that direction is being demonstrated in a letter recently sent to parties participating in the Bell and TELUS review and vary proceedings.

The CRTC has asked for comments on the disposition of these application in light of the Policy Direction.

Again, as I commented on New Year’s Day, it is interesting that the Minister’s interventions, designed to accelerate market forces, has the immediate effect of slowing down the CRTC’s review of two more files.

CRTC driving wholesale access to NGN

January 26, 2007
CRTCA series of Telecom Orders released by the CRTC yesterday point to the Commission driving an agenda that fosters the availability of wholesale DSL and advanced network access, thereby enabling a more competitive broadband marketplace.

In Telecom Order 2007-20, the CRTC sets out requirements for a wholesale ethernet access service as well as transport and connection services:

The Commission determines that the incumbent local exchange carriers (ILECs) shall provide to competitors, as part of their Ethernet services, an Ethernet access service, together with the Ethernet transport service and the Ethernet central office (CO) connecting link service.

Telecom Orders 2007-21 through 2007-25 set out determinations to provide wholesale DSL services by each of the major ILECs across the country, including substantial changes to the originally proposed tariffs.

All of these Orders contribute to simplifying the ability for competitors to offer a uniform suite of services to business and residential consumers. The Orders appear to be a significant win for MTS Allstream and other competitors by getting rid of volume commitments and contracted terms. The Orders directly address concerns about ethernet, next generation networks and the broadband internet market becoming a virtual duopoly.

There is an underlying subtext that needs to be explored at another time. The CRTC found that wholesale ethernet and ADSL are non-essential services, yet the Commission is imposing rates and terms that differ from those initially proposed by the ILECs. Contrast this to the Minister’s direction that requires the CRTC to determine the extent to which regulation of non-essential services should be phased out. Your comments are always welcome.

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CRTC to be headed by Konrad von Finckenstein

January 25, 2017

At last, the CRTC has a new Chair, Konrad von Finckenstein.

Speculation had been that it would be difficult to fill the position, given the interventionist actions by Cabinet in the last year, with an unprecedented policy direction and the over-turning of a couple decisions.

In a converged communications environment, broadcast distribution looks pretty similar to telecom.

The new Chairman’s background as the former head of the Competition Bureau would be consistent with the government’s direction to use a competition law approach to the regulation of increasingly competitive and converged markets for telecom and broadcasting.

We’ll certainly have more in the coming weeks.

TV fund under attack by cablecos

January 25, 2007
CTFShaw and Videotron have both announced that they have stopped sending their contributions to the Canadian Television Fund until there is a review of its accountability, implicitly calling for an overhaul of the governance structure.

While the direct target is CTF, this may be viewed as an indirect challenge to the CRTC. The CRTC’s Broadcast Distribution Regulations require cable and direct-to-home satellite operators to contribute a portion of their gross annual revenues to the CTF. In Shaw’s case, this amounts to $5M per month.

CTF’s governance structure had 3 representatives from the CCTA, a cable industry association that dissolved last year. Videotron had not been a member of CCTA for a number of years and so it had no way to influence the direction of its contributions. CTF’s January 12 news release says that it “has requested that the CCTA nominate a candidate to ensure proper representation from the BDU community on the CTF Board of Directors.”

Did CTF miss the news of CCTA’s demise last year? Exactly who at the non-existant CCTA did CTF approach “to ensure proper representation from the BDU community?”

Pierre Karl Péladeau, president and CEO of Videotron parent Quebecor said:

Fund managers pay little heed to the main private-sector contributors to the Fund and give little consideration to their point of view in decision-making.

We fully intend to continue being a leading contributor to the financing of Canadian production but we have decided to withhold our monthly contributions to the Canadian Television Fund until significant changes are made to its management and direction.

It seems that CTF has fallen out of touch with its funding community.

Update: [January 25, 9:15 pm]
Heritage Minister Bev Oda has called a meeting of the funders of CTF.

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