The 5G Canada Council (5GCC), together with the Canadian Wireless Telecommunications Association (CWTA), is launching a monthly series, 5G Canada: What’s Next, “exploring how the next generation of wireless technologies will transform the way Canadians live, work and prosper.”

5GCC describes itself as “a multi-stakeholder Council with a membership base that includes Canadian wireless carriers, network equipment providers, academia and other product and service providers in the 5G ecosystem.”

The 5G Canada: What’s Next? monthly event series will host leading experts to discuss digital innovations in key areas of Canadian society, including the connected home, education, healthcare, automotive, industry 4.0, and public safety, and how 5G will serve as a key enabler for Canadian innovators.

The first session in the series is taking place at noon (Eastern Time) on Tuesday March 30, featuring guest speakers:

• Luciano Ramos, SVP of Core Networks and Engineering, Rogers
• Bruce Rodin, VP Wireless Technology, Bell Mobility
• Chris Pearson, President, 5G Americas

There is no fee, but you need to register in advance.

“Wholesale telecom services are a lot like selling the big guys’ hand-me-downs.”

That’s how a then-independent telecom journalist described the non-facilities based service providers a few years ago.

On paper, the wholesale scheme seems to make sense: Big network owners are forced to provide airtime to any and all commercial interests at regulated terms and rates, which other companies then resell to consumers at whatever prices they see fit.
…
But in the grand scheme of things, it’s worth asking whether the whole wholesale regime has really accomplished anything.

He concluded with “If the government is going to consider regulated wholesale wireless access, it would have to ensure that it doesn’t just enable hand-me-down services. Realistically, though, that hasn’t happened elsewhere so there’s no reason to expect it would in this situation.”

The 2013 article speaks of the ineffectiveness of a 10% market share for US mobile resellers (Mobile Virtual Network Operators, or MVNOs) as “the best reason for why the Canadian government shouldn’t be – and probably isn’t – thinking of wholesale service as a solution to what ails the country’s wireless market.” [CRTC figures show that Canada’s wholesale-based internet service providers still have less than 10 percent market share [xlsx] after well over a decade of regulated access to wholesale highspeed internet service.]

In the years subsequent to this article, we have seen the capital intensive nature of telecommunications globally drive consolidation in the MVNO marketplace. The two largest US MVNOs, Tracfone and Cricket, have been acquired by Verizon and AT&T, effectively turning these two MVNOs into flanker brands of the mobile giants.

MVNOs continue to exist in Canada on a non-mandated basis and Telegeography data (filed by CWTA in its Wireless Review intervention [pdf]) shows that the market shares of Canada’s flanker brands (own-brand MVNOs) combined with MVNOs is among the highest in the OECD.

Last summer, Cabinet told us “Canada’s future depends on connectivity”, signalling quite strongly that the CRTC’s August 2019 rates “do not, in all instances, appropriately balance the policy objectives of the wholesale services framework and is concerned that these rates may undermine investment in high-quality networks, particularly in rural and remote areas.” Throughout its statement, Cabinet was clear in stating that preserving incentives for network investment was missing from the August 2019 wholesale framework.

A great body of economic evidence and observations from markets around the world has been provided to the CRTC to assist in its deliberations on varying its wholesale internet rates decision and its review of wireless services.

As reported here a couple weeks ago, a recent communiqué from the Telecommunications Working Group of the C. D. Howe Institute (chaired by the Dean of McMaster University’s DeGroote School of Business) concluded “Investment in the telecommunications sector is vital for ensuring Canada’s next generation digital infrastructure.”

Balancing Quality, Coverage and Price. It takes investment, massive levels of private sector investment, to drive quality and increase coverage. Prices have been coming down thanks to facilities-based competition.

MVNOs can continue to exist without regulatory intervention (like in most countries), where carriers and operators are able to identify business opportunities that make sense.

As that former journalist wrote, wholesale telecom services aren’t the solution.

Canada’s premier tower industry event – the annual STAC Conference & Exhibition will be held virtually April 12-16, 2021.

Structure, Tower and Antenna Council (STAC) is a Council of the Canadian Wireless Telecommunications Association (CWTA), reporting to the CWTA Board of Directors. The Council is member-driven, and is directed by an eleven-member steering committee representing the communications network infrastructure market.

STAC 2021 is dedicated to safety and other best practices in the communication tower industry and will bring together industry professionals from across Canada. Expected attendees include representatives from wireless carriers, broadcasters, oil and gas companies, utility providers, tower engineers, contractors, manufacturers, safety trainers and safety equipment suppliers from across the communications and tower industries.

Improving access to education and training resources can help all workers in the communications antenna construction industry remain as safe as possible. This collaborative approach helps ensure all have access to the best possible training and educational material.

The annual STAC conference is the premier event dedicated to Canadian tower safety and is devoted to sharing the important information and best practices that will help maintain Canada’s world-leading tower safety record. STAC brings together experienced professionals from across the industry to help identify optimal guidelines and best practices for all aspects of communications antenna construction. Attendees will learn about new industry practices and technologies and will receive exclusive information about the development of STAC best practices and other industry resources that are normally only available to STAC Members.

The STAC Conference & Exhibition will bring you valuable safety content, opportunities to network, and an engaging virtual exhibit floor. Registration includes a delegate bag shipped directly to you!

I look forward to seeing you there.

This morning, Rogers announced significant expansions in eligibility and available speeds for its Connected for Success broadband program, that aims to bridge the digital divide for up to 750,000 lower income households.

Recall that Rogers was the first Internet provider to offer a program targeting disadvantaged households, announcing Connected for Success in the opening keynote address at The 2013 Canadian Telecom Summit. Initially, Connected for Success was aimed at residents of community housing systems across the Rogers footprint until the Federal Government established a qualification system as part of its support for Connecting Families five years later at The 2018 Canadian Telecom Summit.

Today’s enhancement significantly expands eligibility for Rogers Connected for Success to help bridge the digital divide for even more Canadians in Rogers service areas in Ontario, New Brunswick and Newfoundland. In addition Rogers is now offering more speed options to help support evolving connectivity needs beyond the 25 Mbps speeds provided in the basic Connected for Success package, with new packages exceeding governmental targets for broadband access.

Eligible customers can apply through the Connected for Success website and they must provide verification they receive government financial assistance under one of the qualifying programs:

• Rent-Geared-to-Income housing assistance
• Maximum Child Care Benefit
• Ontario Works,
• Ontario Disability Support Program (ODSP),
• New Brunswick Social Assistance Program,
• New Brunswick Disability Support Program,
• income and disability benefits through Newfoundland’s Income Support,
• and for seniors receiving the Guaranteed Income Supplement (GIS).

With today’s enhancements to the program, Rogers will now offer a 75 Mbps option for $25 per month, and a 150 Mbps option for just $35 per month, in addition to its basic 25 Mbps service for $10 per month. All three speed options include unlimited data. Rogers plans to offer a 50Mbps option in the Spring for $15 per month.

A Rogers customer experience specialist will contact every qualified customer to do a needs assessment, helping determine which speed service meets their household’s needs best. The program provides free installation and modem rental, unlimited data and no credit checks. According to Rogers, “This personalized experience will ensure the unique needs of every customer are met, including online schooling, accessing online social supports and job searches, attending virtual medical appointments, and combatting social isolation by staying connected to loved ones virtually.”

The Rogers media release quotes Daniele Zanotti, President & CEO, United Way Greater Toronto, “We know that COVID-19 is having a disproportionate impact on vulnerable populations and those living in poverty in Canada – with a growing digital divide in who can access much needed supports. For an isolated senior trying to book their vaccine, a mom reaching out for crisis counselling or a furloughed worker trying to re-enter the workforce, digital access is no longer a luxury – it’s a necessity.”

The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry said

The COVID-19 pandemic has highlighted how much we all rely on digital connections now. It has reinforced the importance of access to affordable high-speed Internet as, now more than ever, Canadians are working, learning and communicating with friends and family from home. It is a priority for our Government to ensure that all Canadians get connected, and we are counting on our partners in the private sector to help us achieve that goal. I congratulate Rogers on expanding its Connected for Success program, now helping even more Canadians with their connectivity needs, and further bridging the digital divide.

Today’s service enhancements to Connected for Success provide a clear path forward for affordable broadband. It meets the primary criteria set out by deputants during Toronto’s ConnectTO presentations – delivering affordable broadband now. Not tomorrow. Now.

I recently wrote that some have hijacked the term “affordability” to match their own agenda. With expanded eligibility and expanded low-priced options, Rogers Connected for Success is delivering affordable broadband to even more households today.

Rogers first launched Connected for Success in 2013, becoming the first service provider to offer a broadband solution to low income families. With today’s enhancement to the program, offering faster speeds to a broader range of eligible households, Rogers is continuing to demonstrate its commitment to developing more inclusive broadband solutions for those facing economic challenges.

For the past couple years, I have frequently referred to the tension between the government’s telecom policy objectives, balancing quality, coverage and price. Think of it as a three legged stool. All three legs – Quality, Coverage, and Price – must be maintained in some form of balance to achieve stability in the marketplace.

Last September, in “Yes, it’s time to reboot Canada’s digital agenda”, I wrote that Cabinet’s determination in its review of the CRTC’s August 2019 Wholesale Internet rates was consistent with its stated policy priorities when it expressed concern “that these rates may undermine investment in high-quality networks, particularly in rural and remote areas.” I wrote:

as should be evident to most Canadians over the past 6 months, the pandemic has helped elevate awareness in the importance of Quality and Coverage, the other two legs of the Minister’s priorities. The government called for improving the balance to preserve incentives for investment, the key input to ensure Canadians have access to world leading network quality, covering urban and rural areas.

Cabinet was right to be concerned.

Last August, I prepared a bried tutorial on “The economics of broadband expansion”. There exists a boundary that defines the digital divide: where the total expected revenues from wholesale and retail services are unable to support traditional investment in infrastructure. On one side of the boundary, usually the more urban side, the private sector can line up investors willing to support broadband expansion. On the other side of the boundary, the more rural side, a different approach is required. The households on the other side of the line are candidates for government rural subsidy programs.

What happens if wholesale rates are lowered by a regulatory decision? The total expected revenues for the project logically drop and the result is that more homes end up on the wrong side of the digital divide. More homes are left having to wait for government rural broadband funding; total government funding would have to increase.

Cabinet understood this logical progression. Cabinet told the industry – and the regulator – “Incentives for ongoing investment, particularly to foster enhanced connectivity for those who are unserved or underserved, are a critical objective of the overall policies governing telecommunications, including these wholesale rates.”

As we saw in the C.D. Howe communique last week, “the federal government must provide facilities-based providers will a clear and predictable regulatory framework that coherently balances vigorous price competition with incentives for ongoing investment to improve network and service quality.”

CRTC figures show that the major facilities-based carriers in Canada invest nearly $10B per year in wireline capital, contrasted with just $50M (0.5%) invested by the wholesale services based ISPs.

Simply put, extending the reach of broadband networks (the Coverage leg) requires massive levels of investment, as does the need to maintain Canada’s leadership in the Quality of our networks (Canada’s wireless and wireline networks are consistently rated among the world’s fastest). Government rural broadband funds are simply unable to replicate the investment capacity of the private sector.

The Court appeals looked at very narrow issues of law and jurisdiction, as stated by the Court at paragraph 23:

[23] Significantly, neither section 62 nor subsection 12(1) circumscribe the types of questions that may be raised before the CRTC or the Governor in Council. This stands in contradistinction to the prescription in subsection 64(1) that limits this Court to reviewing questions of law or jurisdiction.

For that reason, no one should expect the Courts’ rulings to be harbingers of the outcome of the CRTC’s review of wholesale rates. The CRTC’s scope is much more broad than that undertaken by the Courts, and must carefully consider the policy considerations set out by Cabinet and the legislative framework under which it operates. The message from Cabinet was very clear: “Canada’s future depends on connectivity.”

If Canada’s future depends on connectivity, the corollary is certainly that Canada’s connectivity future depends on billions of dollars of continued private sector investment. We can expect CRTC to keep this in focus in how it makes determinations in both of the key proceedings under review at this time: wireless services and wholesale internet rates.

Canada’s future depends on connectivity.