OTTAWA – When it comes to wholesale access services, the CRTC should no longer make incumbent telephone companies share parts of their networks with competitors in the residential telephone market, recommends an independent report released Monday by the Commission.
The author of the report, competition and commercial litigation lawyer Michael Osborne, makes the recommendation for areas of the country where large cablecos are emerging as big telephone players.
In business markets, Osborne suggests the CRTC adopt an ex post regulatory approach to allow wholesale access-dependent competitors to demonstrate that mandated access must be continued, because there is less facilities-based competition in this market than the residential one.
The report also states the Commission should mandate access to essential telecommunications facilities and services, with “essential” being based on a test derived from U.S. jurisprudence but allowing for modifications that make it consistent with Canadian competition law. Osborne though notes that a review of Canadian law pertaining to dominance suggests it isn’t certain whether denial of access to an essential facility can constitute an anti-competitive act, or what the test should be.
The report states that it is “clearly in the public interest that the CRTC should continue to mandate access to interconnection services.”
Osborne, a partner in the law firm Affleck Green Orr LLP, also notes there appears to be general consensus that access to support structures should continue to be mandated.
The report also recommends that the CRTC phase out mandatory access to non-essential services.
The Osborne report was commissioned by the CRTC as part of the regulator’s review of its wholesale telecommunications services policies. Comments on the report must be submitted to the Commission by November 30. The review also includes a public hearing that begins on October 9.
The CRTC is looking at a revised definition of essential service, and the classifications and pricing principles for essential and non-essential services offered by incumbent telephone companies, cable carriers and competitive local exchange carriers to other competitors at regulated rates (wholesale services).
