OTTAWA – Industry Minister Maxime Bernier’s efforts to hasten deregulation of local telephone service have come under fire from Canadian consumer groups.
At a press conference Monday, the organizations charged that the minister’s proposals and policy direction to the CRTC ignore the Commission’s roadmap to competition that took into account the largely dominant position of the established local phone companies and was aimed at permitting the creation of viable competition. Some in rural communities say the directive will stifle competition in smaller markets.
The Canadian Consumer Initiative, a coalition of six consumer organizations, accused the minister of trying to minimize the CRTC’s role of providing oversight in telecommunications and of “substituting political judgement for decisions and frameworks painstakingly arrived at by the CRTC after extensive quasi-judicial public hearings”.
The coalition referred to several actions taken over the past year, including Bernier’s request to the CRTC to reverse a decision on Voice over Internet protocol (VOIP), his directive to rely more fully on the “free market” to achieve deregulation, and his proposal to Cabinet for an order that would lead to premature deregulation of local telephone service.
In a statement, the Canadian Consumer Initiative (CCI) said the minister is “appearing to serve only the interests of the major telephone providers: Bell Canada, Telus, Bell Aliant, SaskTel and MTS Allstream”.
“Contrary to the Minister’s statements, the CCI contends that the proposed rapid deregulation of local telephone service, including removing pricing and quality of service constraints, will not promote competition and will not provide better service or prices to consumers.
“These actions defeat competition before it even starts, and cement the position of the big telephone companies,” said Charles Tanguay, deputy director and spokesman of Quebec’s Union des consommateurs.
The groups said although the draft Order on deregulation called for public consultation, it was unveiled only days before the holiday break and allowed only 30 days for comment – “a strategy designed to discourage comment and which stands in stark contrast to the extensive examination of the issue by the CRTC”.
The CCI said the minister must respect parliamentary process and permit the Industry Standing Committee to examine the efforts at telephone deregulation. The Committee has called for public hearings on the draft direction to the CRTC.
The CCI is made up of the Alberta Council on Aging Services, Automobile Protection Association, Consumers Council of Canada, Option consommateurs, Public Interest Advocacy Centre and Union des consommateurs.
