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Lagging or leading

Lag Or LeadFor months now, I have been writing about the disturbing lack of context in respect of some reports examining the state of Canada’s telecommunications industry, especially those that have cited various OECD studies released over the past few months.

As I wrote in June, it has become increasingly clear that the OECD’s analysis is flawed.

The failure by so many to analyse the data appears to confirm what President Barack Obama said recently in a newspaper interview:

I am concerned that if the direction of the news is all blogosphere, all opinions, with no serious fact-checking, no serious attempts to put stories in context, that what you will end up getting is people shouting at each other across the void but not a lot of mutual understanding.

Countless statistics and rankings have been developed regarding the state of broadband networks in countries around the world. Yet, the sum total of all this work may have clouded the issues and caused confusion among policymakers and other stakeholders.

Canada is no exception. While some paint a picture of crisis, others argue that Canada has enviable broadband infrastructure and is well-positioned for the future, despite facing unique geographic challenges.

One matter that is uncontested is that the stakes are high. Countries around the world see information and communication technologies (ICTs) like broadband as key to their economic futures. In Canada, as in other countries, these issues are important to the economic present as well. Canadian telcos, cablecos and wireless providers invest between $8B and $10B each year in advanced communications infrastructure. These investments support $54B in revenues and provide jobs to more than 140 thousand Canadians.

ICT policy sets an enabling foundation for Canada’s participation in a global knowledge-based economy.

A group representing Canada’s largest internet service providers commissioned my firm to study the issue. Today, we are releasing our report [pdf, 944KB] that seeks to clarify the facts, dispel myths and provide the analysis needed to constructively move the issues forward and facilitate a more informed debate.

The report concludes that Canadians benefit from a robust, diversified broadband infrastructure. All Canadians who want to subscribe and pay for broadband can obtain service. We have 100% availability when you consider all the technology choices available. The vast majority of Canadians benefit from a world-leading level of choice in access to broadband technologies, using twisted pair, coaxial cable, wireless (fixed and mobile) and satellite.

Moreover, Canadians have access to some of the most affordable services, while also benefiting from some of the world’s fastest connection speeds for both wireline and wireless broadband services.

In terms of adoption, Canada continues to lead all G-8 countries in adoption of internet services, and ranks in the top ten for most international comparisons on broadband penetration and speeds, contradicting last week’s student project from the Said School of Business at Oxford.

With almost 70% of Canadian households already subscribing, there remains a significant opportunity to expand broadband adoption even further.

The report recommends:

  • As we go through the process of developing a national ICT strategy, recognize the true state of Canada’s ICT infrastructure
  • Continue policies focused on fostering facilities-based competition
  • Build on the past success of private sector investment by removing current policy and regulatory uncertainty regarding investments in next-generation networks
  • Shift more attention to adoption issues (including adoption of next-generation services) and encourage socio-economic research focused on better understanding the obstacles to, and inhibitors of, broadband adoption
  • Consider programmes to improve digital literacy and the use of incentives (tax-based or otherwise) to target and overcome any barriers to broadband adoption

You may download the complete report here [ pdf, 944KB]. It provides the context to enable a better understanding and discussion of the issues for expanding broadband in Canada.

Guiding the future of the internet

OECDYou too can influence the future of the internet.

The OECD is conducting a survey and they are seeking your input.

This type of survey is hardly random and it is not a scientific public opinion survey, so this isn’t a matter of stacking the votes. No “click here” to add your name to the petition. Rather, the effort is part of a global consultation on a variety of issues in advance of a 2008 Ministerial meeting scheduled to take place in Seoul.

We are inviting public comment on the themes for the Future of the Internet Economy Ministerial to help ensure that the meeting will be relevant in addressing the views and concerns of all stakeholders, and will benefit from a wide-range of viewpoints and expertise.

The public consultation is open to all parties wishing to contribute, including in particular civil society groups, representatives of the Internet technical community, individual experts, and business. Members of the general public are also invited to comment.

The questionnaire is structured around four main questions. The first question addresses key principles for the Future of the Internet Economy, and the following three refer to the main themes of the Ministerial: Convergence, Creativity, Confidence.

Follow the link to participate in the Online Public Consultation on the OECD Ministerial Meeting on the Future of the Internet Economy.

The study is only available for input until September 14.

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Accelerating wide open telecom markets

Last December, Minister Bernier announced a variance to the CRTC’s local forbearance decision. This afternoon, the order was finalized, accelerating the deregulation of the industry. According to the Minister, this order is in the interests of customers and taxpayers, to deliver lower prices, recognizing the level of competition in major urban centres across the country.

The order was issued, despite a report from the Parliamentary Industry Committee (INDU) to withdraw the variance order, but it took into account the concerns of parties that provided responses to the consultation process, especially targetting the concerns of smaller cable companies.

The final order maintains the simple test that was set out last December, but clarifies a few points – it broadens and clarifies the definition of who are competitors, tightens the definition of a forbearance region.

The Telecom Policy Review panel had made an extensive number of recommendations to update the industry framework in a competitive global environment. Some of these will require legislative changes and it seems unlikely that the current incarnation of INDU will set aside politics to move forward on policies that should attract bipartisan support. Recall that the TPR panel was created under the Liberal government and its report was delivered to the current Minister. Still, we may need to wait for a majority government to bypass the tone of the committee meetings.

As we have noted before, it strikes me as more than a little ironic that the initial implementations of the TPR’s recommendations are derivatives of cabinet appeals that may not be permitted when reform is completed.

Policy versus politics

I have been following the deliberations at Parliament’s Standing Committee on Industry, Science and Technology (INDU), examining competition in telecommunications. The transcripts of the proceedings are slowly getting added to the committee’s website and they can make for interesting reading.

Michael Geist sat in on the committee’s meeting with Minister Bernier last week and observed:

… much of the discussion fails to distinguish between communications services as the discussion frequently veers between local telephony, long distance, wireless, and Internet access without anyone bothering to distinguish between them.

The sessions also drift in and out of broadcast issues, beyond the telecommunications focus of this committee.

There are lots of opportunities for the committee to examine real policy issues:

  • What are the directions for rural broadband?
  • The role of government in adoption of advanced technologies?
  • Going green through telecom?
  • Strategic purchasing of advanced services by the public sector?

Do any others come to mind?

Will any aspects of communications policy be a part of an election platform?

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Parliamentary industry committee hang-ups

INDU CommitteeParliament’s Standing Committee on Industry, Science and Technology (INDU) has been conducting an investigation into Deregulation in Telecommunications, in the wake of Minister Bernier’s decision to proceed with cabinet’s policy direction to the CRTC and its interventions into a few CRTC Decisions. There are a number of sessions taking place through the month of February.In October, the INDU committee recommending the Minister to delay interventions to the CRTC until the Committee had a chance to conduct more studies.

Yesterday’s National Post had an article about CRTC Vice-Chair Rick French appearing as a witness on Monday. Sheridan Scott, from the Competition Bureau also appeared. There is another meeting scheduled for this afternoon, with witnesses from the cable companies and CLEC community.

With news reports breaking about the government’s position on Net Neutrality, it will be interesting to see if the Committee’s agenda gets side tracked. I published my free-market viewpoint on the story last night. For a contrary view, see Michael Geist.

Playing politics in a minority government is delicate work. If there are to be legislative changes to give effect to the report of the Telecom Policy Review panel, we’ll be watching for a compromise approach to working with the INDU parliamentary committee.

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