By Christopher Guly
OTTAWA-The federal Liberals campaigned on reducing cellphone and wireless service bills by 25% and reiterated that commitment in the government’s throne speech.
The man to ensure that happens is Innovation, Science and Industry Minister Navdeep Bains, whose ministerial mandate letter, publicly released last Friday, instructs him to “use all available instruments, including the advancement of the 2019 Telecom Policy Directive” issued to the CRTC to advance that price-reduction objective, working with telcos and mobile virtual network operators (MVNOs) in the marketplace.
If the cost target is not achieved within two years, the minister “can expand MVNO rules” along with the CRTC mandate on “affordable pricing,” according to the mandate letter.
Jay Thomson, CEO of the Canadian Communication Systems Alliance, which represents independent internet, television and telephone providers, welcomed that directive.
“We’re very supportive of competition through MVNOs as the solution in dealing with price concerns for mobile phones,” he said, adding that he was heartened to see “continued support for rural broadband,” which is cited in Women and Gender Equality and Rural Economic Development Minister Maryam Monsef’s mandate letter.
Working with Bains, Monsef is to ensure that federal, provincial, territorial and private-sector investments “are coordinated to best prepare rural Canada for success in the digital economy.”
In an email to Cartt.ca, Matt Stein, president and chairman of the Canadian Network Operators Consortium, wrote that “it’s encouraging to see the government putting their intentions around mobile competition in writing, and reiterating their willingness to take action to reduce the cost of telecommunications in Canada.”
“Canadians have long paid the highest wireless prices in the world, and it’s high time we introduce the measures (mandated MVNO) that will make the market competitive, and most importantly bring wireless prices down,” said Stein, who is also the CEO of Distributel.
In a statement to Cartt.ca, Robert Ghiz, president and CEO of the Ottawa-based Canadian Wireless Telecommunications Association, said “wireless prices in Canada continue to decline substantially thanks to vigorous competition among facilities-based players.”
He explained that a study commissioned by the federal government found that in 2018, the average price of a plan with unlimited talk and text plus 2GB of data was about $75. “Today, Canadians can get plans with not only unlimited talk and text, but unlimited data as well, starting from between $50 and $75,” said Ghiz.
“Canada’s facilities-based carriers are investing billions every year and have built some of the best-performing networks in the world, with coverage for the vast majority of Canadians. Government action mandating MVNOs could put this at risk, put Canada behind on 5G, and harm investment in services to Canadians, especially those in rural communities. With this at stake, we hope to move forward with policies that are based on evidence, so Canadians can continue to enjoy some of the best networks in the world.”
Bains’ office also weighed in. “Our government is committed to making telecommunication services more affordable and accessible, so that all Canadians can reap the benefits of a digital world and digital economy,” wrote his outgoing press secretary, Dani Keenan.
“As a result of our pro-competitive approach, including issuing a policy directive to the CRTC that puts consumers first, we’ve already seen rates reduced. Average prices for mobile device plans decreased by almost 18% from 2017 to 2018. And in areas where there is strong regional competition, prices are up to 32% lower.”
Said Keenan: “But we understand Canadians still pay too much in cell phone bills. This is why we committed to reducing cell phone rates by 25% in our recent election platform. By promoting more competition in the telecommunications sector, we will make life more affordable for Canadians.”
The industry minister has a lot more on his plate than just lowering cellphone costs.
He is to “award spectrum access based on commitments towards consumer choice, affordability and broad access,” as well as “reserve space for new entrants.” Thomson said that he hopes that would “open opportunities for smaller independent players anxious to compete in the mobile space.”
Keenan said that during this year’s 600 MHz-spectrum auction, the government “set aside space for providers that had less than 10% of the national wireless-subscriber market share,” [which] was done with the goal of increasing competition – one of the best ways to decrease prices for consumers.” She added that Innovation, Science and Economic Development Canada, for which Bains serves as the lead minister, “will continue to set aside space in upcoming auctions.”
Bains will also work with Mona Fortier, minister of middle class prosperity and associate finance minister, and Seniors Minister Deb Schulte to establish a “Canadian consumer advocate to ensure a single point of contact for people who need help with federally regulated banking, telecom or transportation-related complaints – [and] ensure that complaints are reviewed and, if founded, that appropriate remedies and penalties can be imposed.”
The idea is to “make it easier for people to register and resolve their complaints,” according to Keenan.
The industry minister is also to collaborate on the government’s commitment to deliver high-speed internet to all Canadian homes and businesses by 2030 – an initiative led by Monsef, and which also involves Heritage Minister Steven Guilbeault and Infrastructure and Communities Minister Catherine McKenna.
McKenna’s mandate letter has her working with Indigenous Services Minister Marc Miller to “co-develop and invest in distinctions-based community infrastructure plans, and move forward with addressing critical needs,” such as high-speed internet in First Nations, Inuit and Métis communities by 2030.”
“These plans should also include new investments to support the operation and maintenance of this infrastructure,” but it’s unclear whether these investments would support ISP operations on reserves.
Meanwhile, Bains will take the lead in advancing the Digital Charter and enhancing the powers of the privacy commissioner to oversee it.
At a Dec. 10 news conference following the release of his annual report, Privacy Commissioner Daniel Therrien explained that under the proposed enhancement, his office would have “the authority to stop all operations in a company if we were sufficiently concerned about the privacy risks.” He added that broader order-making powers with fines could better encourage compliance, “ensure the protection of rights” and make “the whole process efficient and effective.”
The government will also create a data-commissioner role that will oversee new regulations for large digital companies “to better protect” personal data and “encourage greater competition in the digital marketplace.”
Bains will head that effort, with Guilbeault’s support.
Additionally, the industry minister will collaborate with Digital Government Minister Joyce Murray to “continue work on the ethical use of data and digital tools like artificial intelligence for better government,” according to his mandate letter.
