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Do we offer a sip of water to the thirsty?

Ever since the CRTC released Telecom Regulatory Policy CRTC 2018-377, Development of the Commission’s Broadband Fund, certain critics have campaigned against it, charging (incorrectly) that the Commission has cut its own internet speed targets in half.

It didn’t.

As I wrote a couple weeks ago,

In December 2016, the CRTC set out objectives. As related to broadband service, those objectives were:

  • Canadian residential and business fixed broadband Internet access service subscribers should be able to access speeds of at least 50 Mbps download and 10 Mbps upload, and to be able to choose to subscribe to a service offering with an unlimited data allowance; and
  • the latest generally deployed mobile wireless technology should be available not only in Canadian homes and businesses, but on as many major transportation roads as possible in Canada.

… The 2016 policy set targets for the objective to be met in 90% of Canadian households by the end of 2021, and for 100% of Canadian households, 10 to 15 years following the December 21, 2016 issuance of Telecom Regulatory Policy 2016-496.

A subsequent CRTC decision added additional metrics: “In Telecom Decision 2018-241, the Commission determined that fixed broadband Internet access service is of high quality if it meets a round-trip latency threshold of 50 milliseconds and a packet loss threshold of 0.25%, both measured during peak times.”

The CRTC sought comments on how to distribute its $750M Broadband Fund. Other branches of government, at all levels, have been funding broadband development projects for decades now and still, 1 in 6 Canadian homes lacks access to a service that meets the CRTC’s targets. Some households lack affordable access to any form of broadband internet service.

In its September 2018 funding Policy, the CRTC observed that “A speed eligibility criterion of 25 Mbps download and 5 Mbps upload would likely result in projects covering underserved areas that would deliver a broadband Internet access service that the majority of Canadians use today. Accordingly, the Commission considers that a minimum speed eligibility criterion of 25 Mbps download and 5 Mbps upload would be meaningful and a significant first step towards meeting the universal service objective.”

As a result, it said “that to be eligible for funding, proposed projects that would build or upgrade access infrastructure must be capable of providing a minimum download speed of 25 Mbps and a minimum upload speed of 5 Mbps” but it also added an important condition: “the Commission expects that proposed projects that do not meet the universal service objective-level speeds of 50 Mbps download and 10 Mbps upload will be scalable, meaning that speeds of 50/10 Mbps will be provided to the target community at a future date through capacity upgrades in the access or transport infrastructure.”

The 2016 policy acknowledged that “In some underserved areas, achieving the objective will likely need to be accomplished in incremental steps due to many factors, such as geography, the cost of transport capacity, the distance to points of presence, and the technology used.” [Paragraph 140]

Critics who say the CRTC has lowered the standard set in 2016 are just plain wrong. There has been no change in CRTC policy. The 2016 policy from the CRTC quite clearly did not call for all subsidized internet projects to meet the target speeds overnight, which is why it spoke of “incremental steps” and set a 10-15 year window for the target objective to be met.

Today, some Canadians lack access to affordable broadband at any speed.

They are thirsty for access to the same kinds of services that most Canadians use every day. Some so-called “consumer advocates” believe Canadians should reject anything less than the speeds equivalent to those available in urban centres. That isn’t realistic.

Should we offer a drink of water to those who are thirsty or make them wait until a full bar service is available?

Responding to the new environment

Delayed for a day by storm clean-up, the Broadcasting and Telecommunications Panel launched its consultations earlier today, releasing “Responding to the New Environment: A Call for Comments“.

In its call for comments, the Panel identified four broad themes intended to help guide its work. Each of these themes is accompanied by a number of paragraphs that provide some context for the discussion papers and submissions, as I have attempted to summarize below.

  1. Reducing barriers to access by all Canadians to advanced telecommunications networks;

    Much is packed into this heading, including access to, and adoption of, advanced telecommunications “to connect, communicate, innovate, consume, study, work, and participate in Canadian society and in an increasingly global digital economy.” The consultation mentions both network facilities and digital literacy under this heading.

    In addition, the consultation speaks of facilities based carriers, and incentives and opportunities for investment, while mentioning the contribution of “a number of new entrants… to the rollout of new services and facilities, enhancing both the availability and affordability of services.”

    The section looks at access to spectrum, access to poles and support structures and security. “While openness and ‘net neutrality’—a concept related to the long-standing principle of ‘common carriage’—will continue as key elements of Canada’s legislative and regulatory frameworks, there may be other principles that should be applied in order to balance the need for an open internet with security in the digital context.”

  2. Supporting creation, production and discoverability of Canadian content;

    The panel has apparently already concluded “For Canadian content programming to succeed both domestically and in the international marketplace, there must be clear policies that support quality creation, production and discoverability.”

    Importantly, the call for comments asks “how the legislative and regulatory framework may be modified to ensure that all players, including online players that garner revenue in Canada [empasis added], play a role in the creation, production, and distribution of Canadian content.”

    Further, the role of CBC/Radio-Canada has been added as part of the Panel’s review to consider how its contribution as a local and Canadian source of news and information should be adapted to a global, digital environment.

  3. Improving the rights of the digital consumer;

    Under this heading, the Panel anticipates consideration of affordable access to services, assessing terms of service, “exercising meaningful control” over consumers’ personal information and examining the exploitation of personal information in exchange for services.

    I am still trying to unpack the meaning of a line in this section: “It is challenging to balance the neutrality and openness of the Internet with the protection of privacy and personal security for digital consumers.”

    Another paragraph in this section is certain to attract a lot of commentary, dealing with “the proliferation of false or misleading information presents new challenges. In this context, independent, trusted, accurate, diverse, as well as local and Canadian sources of news and information are essential for an informed citizenry, civic participation, and democratic process.”

  4. Renewing the institutional framework for the communications sector.

    A review of the institutional framework should include the allocation of regulatory responsibilities between the government and the regulator – among other items, this will likely include examining the unimplemented recommendation from the 2006 Telecom Policy Review Panel to move spectrum management to the CRTC.

    The panel will also consider whether new or different legal powers or regulatory tools are needed “to improve the effectiveness and efficiency of the system and the governance of the communications sector in the digital environment.”

I encourage you to refer to the Call for Comments for the full description of each of these themes.

The Panel is chaired by Janet Yale, and it includes Peter Grant, Hank Intven, Marina Pavlović, Monique Simard, Monica Song and Pierre Trudel.

The first round of submissions are due November 30, 2018.

#CTS18: The closing keynote address

On June 6, the closing keynote address at The 2018 Canadian Telecom Summit was delivered by Innovation, Science and Economic Development Minister Navdeep Bains. Following his speech, I had a chance to pose a couple questions to him, as captured in the video.

These are his prepared remarks, provided to media. You can check against delivery:

Last year at this summit, I shared with you my vision for Canadians and telecommunications, and it was focused on three things: quality, coverage and price.

So what progress have we made over the last 12 months?

Let me tackle quality first because we want our telecom services to be fast enough so every Canadian can participate fully in the digital economy.

Parlons d’abord de qualité. Nous voulons que nos services de télécommunications soient assez rapides pour que tous les Canadiens puissent participer pleinement à l’économie numérique.

Improved quality will allow us to innovate whether it be augmented reality, cloud computing, or precision health.

And we’ve done some pretty remarkable things to improve quality. We joined the provincial governments of Ontario and Quebec to launch ENCQOR—an important public-private partnership in the 5G market. ENCQOR, a 5G test bed that will advance the development of 5G networking solutions and next-generation technologies and applications.

I think this group knows better than anyone the impact of 5G, what it means for SMEs and innovators, our economy and Canadians.

While on the topic of 5G, I can tell you that today, we are launching two consultations that will support 5G deployment. We are proposing to release an additional 1 GHz of millimeter-wave spectrum and also launching a consultative process that will advance us toward the 3500 MHz auction. As you know,the 3500 MHz spectrum is going to be one of the preferred bands for 5G services. The consultation reflects our commitment to get this spectrum into the marketplace in a timely way that also supports competition. We know that industry wants access to this spectrum.

Our proposals align with international trends in the band and represent an important step toward ensuring 3500 will be available to meet consumer demand for 5G. More broadly, today my department published our spectrum release roadmap for the next five years. It’s a big part of our commitment to making the right spectrum available at the right time to meet current and future demand.

We plan to hold three spectrum auctions over the next three years to support 5G.

I’m referring to the 600 MHz auction in 2019—a band that has shown potential for 5G wireless and also well-suited for rural and remote areas.

The 3500 MHz auction in 2020, which will also be key to delivering 5G services.

And finally the millimetre wave auction in 2021, which is prime real estate for 5G networks. In the meantime, we have redesigned the developmental licence program to help innovators get temporary access to spectrum.

And it’s working. People have snapped these licences up at a much higher rate, allowing them to test and validate solutions that advance Canada’s 5G leadership.

So the second angle we are focused on is coverage. In other words: Is the service available where I want it?

Over the past 18 months, we have rolled out our Connect to Innovate program with great success. More than 800 rural and remote communities across Canada will soon be fully equipped to participate in the digital economy thanks to this program. Congratulations to the service providers in the room for their incredible interest in this program. It really is a great example of what we can do for Canadians when we work together.

Additionally, the CRTC is pursuing its new objective of getting broadband to homes and businesses with a speed of 50 megabits per second.

Complementing these initiatives is a Budget 2018 commitment to support projects relating to low-Earth-orbit satellites and next-generation rural broadband.

Low-Earth-orbit broadband technologies are still developing, but offer great potential. Our 100-million-dollar investment will allow industry to develop such technologies. Ultimately, this could lead to improved broadband coverage and capacity for Canadians.

The final piece of the puzzle — as it is in many industries — is price.

In the case of telecom: are the high-quality services available to Canadians across the country affordable? That’s what we’re aiming for.

To bring down costs, we all know the CRTC has banned cell phone unlocking fees. Canadians paid nearly 38 million dollars in unlocking fees in 2016.

I’m also pleased to say that, as part of the 600 megahertz auction, we are setting aside 43 percent of the spectrum for regional competitors. That’s a huge push for more competition, and the lower prices that such competition brings. We’re very happy about this.

Finally, with respect to price, I am pleased to announce Connecting Families. It’s a new initiative that will help hundreds of thousands of low-income Canadians get online so they, too, can participate in the digital economy. And we’ll even provide them with a computer if they need it through our Computers for Schools program.

I want to recognize Bell, Cogeco, Rogers, Sasktel, Shaw, Telus and Vidéotron for stepping up—offering low-cost home Internet service plans for hundreds of thousands of Canadians. We truly appreciate your efforts and collaborative spirit.

I need to give a special shout-out to Telus for its leadership.

Ladies and gentlemen, we all agree that all Canadians need access to high-quality, broad-reaching, and affordable Internet services. Mesdames et Messieurs, nous sommes tous d’accord pour dire que TOUS les Canadiens doivent avoir accès à des services Internet de haute qualité, abordables et de longue portée.

And as with any competitive market, more can be done. More must be done.

I won’t rest until we achieve a reality where kids in northern and remote communities have the same connectivity privilege as kids here in Toronto—kids like my two girls. It is imperative that we remember many Canadians are not fully engaged in the digital economy.

Je ne serai pas satisfait tant que nous n’aurons pas agi pour que les enfants des communautés nordiques et éloignées aient les mêmes privilèges que les enfants d’ici à Toronto — des enfants comme mes deux filles. Il faut garder à l’esprit que bon nombre de Canadiens ne participent pas pleinement à l’économie numérique.

Whether it be an issue of quality, coverage or price, I encourage your industry to keep swinging for the fences. Together, we will make this country a global centre for innovation—one that focuses on driving economic growth, creating middle class jobs and improving the lives of all Canadians.

Thank you. Je vous remercie.

#CTS18: Day 3 coverage

Quick summary of coverage in the media from the third day of The 2018 Canadian Telecom Summit:

Over the coming weeks, I plan to post video from various sessions of The Canadian Telecom Summit. Watch this space, and have a good summer.

Connecting families

It was an especially sweet moment for me.

Earlier today, in his closing address at The 2018 Canadian Telecom Summit, Innovation, Science and Economic Development Minister Navdeep Bains announced that 7 internet service providers (Bell, Cogeco, Rogers, Sasktel, TELUS, Shaw and Videotron) will launch a national affordable internet program, providing high speed internet service to low-income households for only $10 per month.

In the opening remarks at The 2008 Canadian Telecom Summit, nearly 10 years ago, that we first started talking about the need for government leadership to help address low rates of computer ownership and broadband adoption among low income households. For 10 years, we included a call for the private sector to find a way to get more households online.

In the opening keynote address at The 2013 Canadian Telecom Summit, Rob Bruce announced that Rogers would be working with Toronto Community Housing to pilot an affordable internet program called Connected for Success. The program was later expanded to include other community housing agencies across the Rogers cable footprint. TELUS launched “Internet for Good” in BC and Alberta in 2016.

A major challenge had been for service providers to identify qualifying households. With the help of the federal government, the program is now able to go national. Thanks to additional service providers voluntarily joining the program, hundreds of thousands of kids will be able to go back to school in the fall with the ability to do their homework online.

The 2008 Canadian Telecom Summit included a concert by Israeli musician Mosh Ben Ari and his band, where he opened with a song called “The Way” which includes the lyric “זה רגע מתוק, זה [It was a sweet moment, that].” Forgive me for flashing back to 2008.

Today’s announcement by Minister Bains was an especially sweet moment. At future events, I guess we will need to find something else to talk about. And that is a good thing.

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