The Minister of Heritage has appointed Judith Larocque as interim Chair to “ensure the continuous and efficient operation of the CRTC.” The 4-month appointment will give the government a little more time to fill the increasing number of vacancies on the Commission and perhaps prepare a new mandate letter for the new Chair.
To assist in that process, I have blacklined the mandate letter that was given to the previous chair, underline indicates new text, strikethrough indicates deletions. I encourage you to add your comments to assist in crowd-sourcing the direction from the government to the new Chair.
The government is currently recruiting 4 positions to fill vacancies at Chair and among Commissioner positions at the CRTC. The government may want to refer to the CRTC’s website to see when the terms are expiring for a number of other Commissioners, in order to start the recruitment process a little earlier next time around.
DRAFT
Chairperson
Canadian Radio-television and Telecommunications Commission
1 Promenade du Portage
Gatineau, Quebec
J8X 4B1
Dear Mr Chair
I would like to take this opportunity to welcome you to the position of Chairperson of the Canadian Radio-television and Telecommunications Commission (CRTC). You are appointed at a challenging time for the Commission. Thank you for your willingness to serve in this capacity. I am confident that your skills and experience have prepared you for the struggles ahead.
As you are aware, the CRTC is an independent regulator that operates at an arm’s length from Government. Within these boundaries, I hope that we can work together on issues of mutual interest, while maintaining an appropriate level of distance between our two organizations. Likewise, I want to let you know that my office door is always open should you wish to discuss any intersecting issues.
Conversely, please do not hesitate to push back when you detect political interference in areas that are clearly CRTC jurisdiction. I trust you will not wait until the end of your term to protest matters that can be dealt with in a more timely manner. In particular, if we cross the line, feel free to chirp back a reply message to “STFU.”
Over the years, I have watched the broadcasting activities of the CRTC and believe that the Commission could do a better job to ensure consumer participation and focus on its core duties. I would like to see the Commission comprehensively address consumer affordability and service complaints, ensure consumers are aware of and able to participate in broadcasting proceedings, and regulate broadcasting undertakings only to the extent necessary.
Please do not confuse click-tivist special interest groups with the broader consumer interest. Perhaps some of your social media promotional budget could be re-allocated to measure broader consumer sentiment.
Consumers should have access to more programming choices and affordable choices across all distribution platforms, including radio, television, broadband networks and mobile devices, as well as avenues for recourse. Consistent with the Broadcasting Act, the CRTC should ensure that regulation is targeted and transparent, and that alternatives to regulation are considered. In implementing the Act, the Commission should be mindful of the original intention of legislators.
With respect to telecommunications, the Government’s objectives are to promote competition, investment, innovation and consumer choice. Consistent with the Policy Direction and the focus on consumers through the establishment of the Commissioner for Complaints for Telecommunications Services (CCTS), a light approach to regulation should be taken to achieve these objectives, with continued attention to consumer protection and participation. I really mean it: if we wanted the CRTC to ignore the Policy Direction, we would rescind it.
As you know, the Government recently tabled its Economic Action Plan 2012 which remains focused on an agenda that will deliver high-quality jobs, economic growth and sound public finances. All over government we have been reducing expenses.As you know, the Government recently tabled its Innovation Agenda which remains focused on plan to create good quality, high-paying jobs for the middle class and those working hard to join it. In your administration of the CRTC I would like to see a strong commitment to look at expenses, set priorities and make choices resulting in greater efficiencies.
Please keep in mind the CRTC is a body of Commissioners, each of whom have been selected for their positions by the Governor-in-Council because of the perspectives and expertise they bring. I trust you will create an environment that fosters vigourous debate of issues within a climate of respect for all viewpoints, establishing a workplace celebrating the diverse mosaic that defines Canada.
I look forward to working with you in your new capacity.
Sincerely,
It is remarkable how much of the previous mandate letter continues to apply.
The opening address to The 2017 Canadian Telecom Summit was delivered by The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development. The following is my transcript of his address.
Thank you very, very much for that kind introduction. And thank you Mark Goldberg and Michael Sone for your leadership and all that you do in terms of really helping promote the telecommunications sector. And it’s great to be here this morning, and it’s just, as I was talking to my team and driving here for this particular Summit, I realized it’s just slightly outside the boundaries of Mississauga-Malton, the constituency I represent. So, for me, I am going to say welcome to Mississauga-Malton for those of you who are out-of-town. And thank you for inviting me to kick off this yearâs summit.
As you know, your sector has been at the forefront of our digital revolution.
In fact, Canadians were pioneers, starting with the Communications Research Centre. It established the first international connection to the precursor of the Internet. Who would have predicted then that high-speed Internet would become the backbone of a global and digital economy?
Increasingly, the prosperity of Canadians depends on their access to high-quality, high-speed Internet. Affordable wireless and broadband services are no longer luxuries. They aren’t luxuries we should take for granted; they are basic and essential tools for all Canadians,regardless of where they live.
They need this service to do business, learn new skills, and more importantly, build communities.
So Iâm here today to talk about the strengths of this really critical sector and how we can work together to ensure that Canada remains a global leader in telecom technologies.
And I also want to talk about areas where this sector can improve and what those of you in this room can do to help.
So, first of all, let me start off by thanking you.
Because of your investments, Canada has some of the worldâs most advanced and efficient telecom networks. Very high-speed Internet is available to more than three-quarters of Canadians. Thatâs up from 2011, when only a quarter of Canadians had this service. As well, virtually all Canadians are covered by the latest wireless technologies. And Canadaâs wireless networks are fast. They rank second among G7 countries for average connection speeds. And Canadian telecom network investments (and this again is a point of pride) exceeded $56B between 2011 and 2015. So these high speed networks enable Canadians to do more online, whether itâs buying and selling, collaborating on work projects, or staying in touch with their kids and grandkids in other parts of the world.
These networks turn consumers into producers, observers into participants and users into innovators. So our government understands that Canadians want three things from their telecom services.
Quality. Is the service fast enough to do what I want it to do?
Coverage. Is the service available where I want it to be?
and lastly, Price. Is this service affordable?
These three areas are clearly where providers need to compete and thatâs why our Government is doing our part to promote competition and investment. The goal is very clear. We want to improve quality, coverage and price for all Canadians.
So, to improve quality, we have doubled the amount of spectrum available for next-generation wireless networks. That means Canadians will have access to faster, more reliable networks, regardless of traffic load.
And to expand high-speed Internet coverage, we recently in our budget Budget committed to 500 million dollars for the Connect to Innovate program. This program will build the digital backbone that enables Canadians in rural and remote communities to have access to high-speed Internet. Up to 300 communities across Canada will benefit from this program. And, I am delighted to say that Canadaâs Internet service providers have expressed overwhelming support for this program. You know, Connect to Innovate is heavily over-subscribed because of your interest. And that means our government can select the best proposals with the greatest benefit to consumers. And thatâs great news for Canadians in rural and remote communities.
But thereâs still more to do. For example, too many Canadians still feel like they are being left behind, either because they live in parts of the country where high-speed Internet and fast wireless networks are still not available, or because they canât afford to pay for those services.
Only about one in four Canadians in rural communities has access to high-speed Internet. But access isnât the only challenge.
The bigger barrier is price, which are especially high for low-usage cellphone plans. Subscribers pay more for basic cellphone service in Canada than for similar services in the United States and the United Kingdon. I get letters regularly, just like my colleagues do, from Canadians who are concerned that they are not receiving the best possible prices and they are being priced out of the market. People like the father of three, whoâs struggling to keep up with the high cost of his familyâs cellphone bills, which keep rising every single year.
Low-income Canadians spend a higher share of their household income on cell phones and internet bills than high income Canadians. So itâs not surprising that only six out of ten low-income households in Canada have Internet access. By contrast, virtually all households that earn $125,000 annually have it.
The digital divide is unacceptable and it represents a real barrier to continued prosperity for all Canadians. You know, every child whoâs unable to do school assignments or download music online is one less consumer of your products and services. Each one of these children is potentially one less software developer for your industry, and one less job creator for our country.
We need every Canadian to be innovation ready. Ready to spot opportunities, imagine possibilities, discover new ideas, start new businesses and create new jobs. All Canadians need access to high-speed Internet, regardless of their income level, or postal code. Until we bridge this digital divide, Canadians will not reach their full potential.
Some of you have taken first steps to address the issue, as mentioned earlier.
In particular, I’d like to take this opportunity to acknowledge Rogers and TELUS who have introduced a service that charges low-income households ten dollars a month for basic Internet.
More providers need to follow their lead and our government is doing its share.
That is why, in our most recent budget, we proposed to invest up to $13M to facilitate all service providers (that’s everyone) to offer these programs to low-income families. In fact, our government would like to see more package options and price points offered to all Canadian families, particularly in the wireless sector.
Other countries have benefited from service innovations that support low-cost options for consumers as well.
Innovations such as Wi-Fi first applications have created a new low-cost business model in the wireless market. This particular model depends far less on routing signals through commercial wireless networks. Instead, Wifi based service providers route phone calls and data primarily through Wifi networks. It only falls back on a commercial wireless network when customers are out of Wifi range.
South of the border, Republic Wireless offers such a plan for as low as US $15 per month.
This new Wi-Fi first model could benefit Canadian consumers as well, especially those with low incomes who are not well served by existing plans. So, ladies and gentlemen, middle-class Canadians and those working hard to join them, are concerned about the rising cost of their Internet and cellphone bills. And I’ve mentioned that I’ve heard this from constituents and Canadians from across the country. They deserve more affordable options. They deserve more options and choice.
Thatâs why our government is taking action. To that end, I am directing our national telecommunications regulator to reconsider one of its recent decisions and launch a new proceeding. On March 1st, the CRTC issued rules for regulated wholesale roaming by wireless providers and this decision excludes Wifi based providers from access to regulated roaming services. And that effectively prevents Wifi based providers from offering their low-cost plans to consumers. And this lack of choice does not benefit Canadians and for this reason, I am directing the CRTC to rethink its decision and reconsider the Wifi-first model. This model could provide Canadians with more choice and affordable prices. As the CRTC looks at this model, I will also ask it to maintain a strong investment environment that supports, and I want to be clear about this, that supports facilities-based competition.
Thatâs how Canadians will benefit from faster more reliable services across the country.
But thatâs not all. Fees that providers charge to unlock cellphones are a major irritant for consumers as well and this is an issue again that I’ve heard directly from Canadians. Last year, Canadians paid nearly $38M to have their phones unlocked. I know that the CRTC is looking at this issue, and our government will closely monitor the results of the CRTCâs review.
We will continue to do everything possible to promote more competition and choice for consumers.
To that end, Iâm pleased to announce today that our government has made changes to its licensing process for satellite-based providers of high-speed Internet. This action will encourage these next generation providers to enter the market. Thatâs good news for Canadians living in rural and remote communities, because new low-earth orbit satellites have the potential to revolutionize the delivery of rural broadband.
Our government will continue to manage spectrum in ways that benefit all Canadians, because the goal is to improve the quality and capacity of our wireless networks. Especially since Canadians have a never-ending love affair with these wireless devices – trust me, I have 2 daughters – which has triggered an explosion in demand for more data and faster networks.
Demand is also surging as advanced devices merge with networked sensors and software, which is ushering in the age of connected cars and the Internet of Things.
And again, that is why our government is making low-frequency spectrum in the 600MHz band available for wireless service providers. The 600 band will improve the quality and range of wireless coverage for Canadians. In particular, it will extend more wireless signals to Canadians living in rural and remote communities.
And let me be clear about our approach to the 600MHz auction. It will provide an opportunity to support more competition, lower prices, and encourage investment.
But thatâs not all. For Canada to be a world leader in innovation, our country needs to develop and use emerging technologies, such as 5G wireless networks. The 5G market is expected to be worth $36B globally by 2020. Canada must be ready to compete. 5G would allow Canada to become a global leader in emerging technologies such connected cars and smart cities, both initiatives that this government supports.
Thatâs why I am pleased to launch a public consultation on releasing spectrum to support the development and deployment of 5G mobile networks.
Thatâs how Canadians will have access to faster, more reliable networks, regardless of traffic loads.
Ladies and gentlemen, there is no difference anymore between the digital economy and the rest of the economy.
The digital economy is the economy.
For that reason, our government is taking steps to reflect Canadaâs digital economy. We will review the Telecom and Broadcasting Acts as we announced in the most recent budget. These two acts were written before the Internet became an ever-present part of our lives. These acts need to be examined through the lens of current and future trends of technology. But above all, we must respond to the changing needs and expectations that Canadians have.
The Minister of Canadian Heritage and I will work together to review both of these acts. The goal is to position Canada to be a global in the digital economy. Thatâs how we will create better jobs and better business opportunities for all Canadians. Thatâs how we will encourage more Canadians to be developers of content and content creators for the Internet.
Our government looks forward to co-investing with you in the digital future.
Thank you very much.
Minister Bains and I discussed aspects of his address for a further 10 minutes, captured in the accompanying video.
For the first time in recent memory, the Federal Budget [pdf, 2.6MB] released yesterday looks at measures to increase adoption of internet services. Typically, the government has allocated money toward stimulus of rural and remote broadband, without considering the more significant challenge of increasing the demand side in urban and rural communities.
Open Media was quick to criticize the lack of additional funding, “Itâs a real letdown to see the government discuss innovation without any new funding commitment for Internet infrastructure, despite the CRTCâs historic ruling in December that every Canadian should have affordable, reliable Internet access.” However, the budget maintains the $500M in support for rural internet infrastructure announced last year, the vast majority of which is set for spending beginning in the 2018-19 fiscal year. In addition, the CRTC established its own rural internet support programme, setting up $750M in new funding, so it is difficult to see how the Federal Government could have responsibly gone beyond its current level of commitment.
I have said before, what is needed most from Ottawa doesn’t take money, we needs leadership. Yesterday’s Budget is promising from the perspective of starting to say the right things and starting to send the right signals.
According to the Economist Intelligence Unit, Canada is tied for 8th out of 75 countries in terms of Internet inclusivity. Canada does particularly well on measures of Internet affordabilityâranking first overall. Canada is also successful in terms of Internet quality and availability and in terms of having local and relevant Internet content. An area where Canada can improve, however, is by addressing digital divides that result in some Canadians being underserved by the digital economy. The Digital Literacy Exchange and Accessible Technology Development programs proposed in Budget 2017 will enable Canada to make progress in this important area.
An entire section of the Budget is entitled “Making Home Internet Access More Affordable for Low-Income Families”
Since 2008, the pages of this blog have been calling for government leadership to promote low income options for internet service and home computers. Income verification has been among the biggest challenges for service providers that wanted to offer a discounted service to low income households. Up until now, the Federal Government was unwilling to help, leading service providers to work with provincial and municipal agencies to identify qualifying households. The Budget represents the first time the Federal government has acknowledged its role in promoting such solutions.
Access to the Internet opens up a world of opportunitiesâfrom social connections with friends and family to new ways to learn and work. Most Canadians are already online, but many low-income families face financial barriers to access, such as the cost of purchasing a computer and the high cost of an Internet connection at home.
Budget 2017 proposes to invest $13.2 million over five years, starting in 2017â18, in a new Affordable Access program, which will help service providers offer lowcost home Internet packages to interested low-income families.
As the cost of computer hardware is also a barrier for some families, a target of 50,000 computers refurbished through the existing Computers for Success Canada program will also be distributed to families, along with the low-cost Internet packages.
In October, I wrote “Building a broadband research agenda,” calling for “serious research into why people donât subscribe to broadband.” The budget has allocated $5M to begin the process.
To better understand how Canadians use digital technology, Budget 2017 also proposes to allocate $5 million over five years, starting in 2017â18, for Statistics Canada and private sector-led surveys on the impact of digital technology in Canada.
The Budget also promises “to review and modernize the Broadcasting Act and Telecommunications Act.”
In this review, the Government will look to examine issues such as telecommunications and Canadian content creation. Further details on the review will be announced in the coming months. s review, the Government will look to examine issues such as telecommunications and content creation in the digital age, net neutrality and cultural diversity, and how to strengthen the future of Canadian media and Canadian content creation. Further details on the review will be announced in the coming months.
I try to be a “glass half-full” kind of guy, tainted with a healthy measure of cynicism. Canada’s telecom policy has been drifting aimlessly for more than a decade, with random measures introduced into legislation absent a cohesive digital strategy. In other posts, I have suggested that Ottawa has delivered “Inconsistent messages; predictable turmoil.” But I am optimistic that a new review of legislation will provide the opportunity for a fresh start.
As I have suggested before: Set clear objectives; Align activities with the achievement of those objectives; Stop doing things that are contrary to the objectives.
A few years ago, in a post called “Building a digital economy dashboard,” I cited a Peter Drucker principle: “you canât manage what you canât measure.” Scorecards or operating dashboards are basic, yet important management tools.
The Canadian Government is focused on an innovation agenda, as I noted last month in “Building an innovation economy.” Massive levels of expenditures, frequently called “investments” in the government press releases, are being made in schools and businesses across the country.
How do we measure the effectiveness of this spending? The CRTC’s Basic Service Objective decision describes some of these measurements: what percentage of the population has access to high speed broadband connections? How many have access to an unlimited data plan?
The CRTC’s regulatory policy opened with the statement “This decision sets out the actions the Commission is taking to help meet the needs of Canadians so that they can participate in the digital economy and society.” But what was notably missing was any action to increase basic adoption among vulnerable low-income Canadians, or low-income households with school children.
the Government of Canada is currently examining these affordability issues in the context of its Innovation Agenda. As the Government of Canada has stated, everyone has a role to play. In the Innovation Agenda, ISED indicated that Canada must do more to give rural communities and low-income Canadians affordable high-speed Internet access services so that they can participate fully in the digital and global economy for a better quality of life. As stated in the Commissionâs submission to the Innovation Agenda, the Commission supports concerted efforts from a variety of stakeholders as essential to making progress in this area and encourages other stakeholders to follow suit.
The issue of broadband adoption by low-income Canadians figures more prominently in the CRTC’s submission to the Government of Canadaâs Innovation Agenda consultation in the form of a letter dated December 21 from the CRTC Chair to ISED Minister Bains. The day before that letter was released, the CRTC gave approval to Bell’s acquisition of MTS broadcast distribution undertakings. Two months later, ISED granted approval to the Bell, MTS transaction. As I noted last week, the CRTC and ISED missed the opportunity to have a low-income broadband solution developed for Bell and MTS territories.
Recall that during the hearing that led to the Basic Service Objective determination, CRTC Chair JP Blais interrupted the proceeding and said “Every day that goes by without a more robust Canadian broadband strategy means a Canadian who is socially and economically vulnerable continues to be profoundly disadvantaged.”
What gets measured gets done. Having a broadband strategy simply isn’t enough; we’re long overdue for setting an objective for universal adoption by low-income households with school-aged children. It isn’t enough for broadband to be available; every household with kids needs to be online.
My “Building an innovation economy” post referred to the Global Competitiveness Index from the World Economic Forum (WEF) [pdf, 12.2MB], where Canada’s ranking dropped in the past year from 13th to 15th place. An objective might be to improve Canada’s standing in certain international indices, but that should be a result of achieving independent objectives.
How should Canadians measure our innovation agenda? How do we define and measure success? How do we know that we are heading in the right direction?
The 2017 Canadian Telecom Summit [June 5-7, Toronto] will look at “Competition, Investment and Innovation: Driving Canada’s Digital Future.” Early Bird savings for conference registrations are in effect until the end of February. Register now to save.
[Update: February 22, 2017] ICTC has announced an initiative to develop a national measure for digital innovation. In the next couple of months, ICTC will be producing white papers and consulting on the specific parameters that go into building this national digital innovation indicator, guided by four key factors: Innovative Climate Index, Innovative Capacity Index; Innovation Outcomes/impact Index; Innovation Confidence Index.
In an interview with the Financial Post, Commission Chair JP Blais had hinted his next big ruling â a decision on basic Internet service â will be his most disruptive yet. Earlier today, the CRTC issued Telecom Regulatory Policy CRTC 2016-496 “Modern telecommunications services â The path forward for Canadaâs digital economy” [TRP 2016-496] and it is difficult to see the level of disruption.
The financial markets expressed relief with the decision, Barclays calling it ‘benign’ and Scotiabank saying ‘logic actually prevailed… the absence of retail price regulation renders this decision a ânon-eventâ from the capital marketâs perspective.’ From a consumer perspective, describing broadband as a basic service without imposing an obligation to serve creates a high likelihood that the basic service objective will not be much more than a score card bound to disappoint. The Regulatory Policy describes the former obligation as “The obligation to serve requires the incumbent local exchange carriers (ILECs) to provide telephone service to (i) existing customers, (ii) new customers requesting service where the ILECs have facilities, and (iii) new customers requesting service beyond the limits of the ILECsâ facilities.” [paragraph 3, TRP 2016-496]
Later, at paragraph 180, the obligation to serve is credited by the CRTC as having led to successful fulfillment of the voice basic service objective:
As stated earlier, there is currently near-ubiquitous access in Canada to the level of service set out in the basic service objective. As a result, the intended goal of the basic service objective has been achieved.
But, rather than impose an obligation to serve on this aggressive broadband objective, the obligation is largely being eliminated. The obligation is being replaced by financial incentive programs, an industry-funded $750M pot, starting at some undefined point in the future. This is nothing new. More than 10 years ago, the Report of the Telecom Policy Review Panel recommended “that affordable and reliable broadband services should be available in all regions of Canada by 2010.” An entire chapter of the report was dedicated to “Connectivity: Completing the Job.” Chapter 8 recalls “In 2000, the federal government set a policy goal of ensuring that broadband networks and services would be available to businesses and residents in every Canadian community.”
Recommendation 8-1
As a key part of its national ICT strategy, the federal government should
ensure that Canada remains a global leader in the deployment of broadband networks, and
immediately commence a program to ensure that affordable and reliable broadband services are available in all regions of Canada, including urban, rural and remote areas, by 2010 at the latest.
That recommendation was made more than 10 years ago. There have been hundreds of millions of dollars spent since then by successive federal and provincial programs. The CRTC got into the rural broadband subsidy business once before when it set up its Deferral Account.
A week after ISED Minister Bains announced a $500 million broadband program (“Connect to Innovate”), today’s CRTC decision sets up yet another funding program. These are taking place ten years after the report of the Telecom Policy Review Panel, 16 years after the government first set its policy goal.
The most disruptive ruling yet? Kindly excuse my cynicism. What is disruptive here?
In the hours before the policy was released, I prepared a series of Tweets on what I might consider to be disruptive regulation. They are reproduced below for your consideration over the holidays. Perhaps we’ll see more innovation in the New Year.
1/8 #CRTC Chair: "decision on basic Internet service â will be his most disruptive yet" https://t.co/wF0X4XKjjS
