Cable / Telecom News

Telecom Policy Review: Mixed reaction


OTTAWA – Reaction to Wednesday’s report of the federal government’s telecom policy review panel was mixed, including polar opposite opinions from two incumbent phone companies.

MTS Allstream said the recommendations were “hopelessly complicated and impractical,” while Bell Canada called the document “a detailed blueprint for change.”

The CRTC, apparently befuddled by a report that, at 400 pages, is even longer than one of its own policy review documents, said virtually nothing at all.

“The recommendations in this report do not bode well for the pace of competition or innovation in Canada’s telecom sector,” said Chris Peirce, Chief Regulatory Officer at MTS Allstream. “In the near term, we see no practical effect on our business. Longer term, the recommendations appear hopelessly complicated and impractical. They appear based on the rather implausible notion that greater bureaucracy will result in greater efficiency for Canadian consumers and businesses.”

Peirce said the company will go ahead with growth strategies in Manitoba and hope the regulatory framework will foster that. “The good news is that these are recommendations, not policy. We will work with the federal government in the coming months toward the development of policy that creates a fair environment for all competitors and fosters true, market-driven innovation. As always, we remain focused on growing our business.”

Things couldn’t be more different at Bell. “This is a landmark report that will ignite a key driver of Canada’s economy,” said Lawson Hunter, Executive Vice President and Chief Corporate Officer of BCE and Bell Canada. “The panel has acknowledged the rapid change taking place in the telecommunications and ICT sectors and set out a comprehensive framework for Canada to not only catch up with our major competitors, but move ahead. Just as important is their recognition of the urgent need to allow market forces to prevail in order to ensure Canadian consumers and businesses receive the full benefits of competition and innovation,” he said in a statement.

“The Government of Canada now has a detailed blueprint for change and a method and timetable for action,” Hunter went on to say. “This panel has done cutting-edge work. Their report positions Canada well to take a world-leading role in this dynamic and critical sector of the economy. It is in the interests of all Canadians that the government act quickly and decisively on the report’s recommendations.”

While the CRTC was mentioned frequently in the report, it didn’t have much time to digest the tome before issuing a generally worded, brief statement.

“Although we have not had the opportunity to review the report in detail, the CRTC would like to recognize the panel’s diligence in undertaking this timely study of Canada’s telecommunications framework,” said chair Charles Dalfen. “The CRTC welcomed the opportunity to participate in this review and submitted a discussion paper. We believe the review has provided Canadians with an opportunity to think about where Canada has been, where it is now and about where it should go in telecommunications in the context of a global information society.”

The CRTC statement said the commission looks forward to “further dialogue and discussion” about the report’s recommendations.

Among other things, the panel report recommended the CRTC take over spectrum management from Industry Canada, and reduce the number of commissioners from 13 to five.