TORONTO – ISED Minister Navdeep Bains opened the 2017 Canadian Telecom Summit with a speech outlining a number of new government initiatives, but there was one overarching message that has to burn the ears of the incumbent network providers in attendance who were listening.
That is, your prices are far too high.
- “The bigger barrier is prices, which are especially high for low-usage cellphone plans,” the Innovation, Science and Economic Development Minister said in his speech to delegates.
- “I get letters regularly from Canadians who are concerned that they are being priced out of the market,” he added in the speech.
- “Our government would like to see more package options and price points offered to all Canadian families,” he continued.
- When asked during a media scrum after his speech what he would tell the wireless incumbents who have other data which show prices in Canada are fair and in line with serving a country the size of Canada? “We talk to Canadians. We have data as well… there’s clear data to demonstrate that amongst our G7 peers, for low usage plans and for high usage plans… we pay more than our U.S. and U.K. and G7 counterparts and we need to deal with those issues around more affordable prices. It really is about lower prices and more choice for consumers and that’s exactly what we’re trying to achieve through these measures that will enable technology to promote more competition and more investment.”
- “What we want to achieve is to say ‘how can we use technology to really provide more affordable prices for consumers’,” he added.
- Finally, in an interview with Cartt.ca editor Greg O’Brien: “This is a real issue that consumers are concerned about… we, on average, pay much more for low usage plans and high usage plans and so (his announcements today) are clearly directed to see how we can bring down prices… and obviously better choice for consumers.”
So let it be known: 1) The Minister knows his talking points; and 2) The federal government thinks the industry charges far too much to provide wireless and broadband to Canadians – and it wants to do something about it (or, say the skeptics, of which there were many on the floor at the Telecom Summit, “to be seen” to be doing something about it.)
When it comes to the measures he outlined, Minister Bains made a number of announcements in his speech which he hopes will make broadband and wireless services more affordable to more low income Canadians.
First, the Government is asking the CRTC to reconsider its March 1st wireless roaming decision (CRTC 2017-56) which excluded Wi-Fi-based service providers from access to roaming services. “This action could potentially open the door to companies that use innovative solutions to provide Canadians with more affordable wireless service options,” he said, using Republic Wireless in the States as such an example. (However, Republic is known to have an MVNO [mobile virtual network operator] contract with Sprint for when its customers roam off Wi-Fi. Any similar new Canadian Wi-Fi operator would have to come to an agreement with a Canadian incumbent, which would not likely be an easy thing. Just ask Sugar Mobile.)
We asked for, but have not yet seen the federal government’s Order-in-Council directing the CRTC to reconsider CRTC 2017-56 (UPDATE: It can be found here), so we don’t know exactly what the government is demanding, yet, but the Minister spoke of trying to walk a fine line in forcing carriers to bring prices down – while maintaining the levels of investment required to keep facilities-based competition strong.
“This is not the 1990s era anymore, this is 2017 and software should be considered a facilities-based play.” – Samer Bishay, Ice Wireless
To that, Ice Wireless, Iristel and Sugar Mobile CEO Samer Bishay said in an interview with Cartt.ca: “This is not the 1990s era anymore, this is 2017 and software should be considered a facilities-based play.”
Bains also said in his speech the government will be releasing its decision on a streamlined licensing framework to support the deployment of next-generation, low-orbit satellites. This will allow more satellite-based providers to enter the market and extend high-speed Internet services to Canadians in rural and remote communities across the country.
The feds will also soon launch a public consultation on the release of spectrum to support the deployment of 5G wireless networks. (For more on this, please see Cartt.ca’s coverage of last week’s 5G Summit in Gatineau here and here).
The Minister also referred to the $13 million set aside by the federal government in the last federal budget to help deliver more affordable wired broadband. While it sounds like a drop in the bucket when compared to the tens of billions of dollars invested in their networks by incumbents over the past number of years (which Bains also lauded), the money is actually going towards setting up a database system whereby low income households can be identified for operators so that they can offer low cost broadband plans only to Canadians who can’t afford it – but where everyone’s privacy is protected. ISED has been working with the telecom industry on this new tool, which is not yet ready to be deployed.
However, moving forward how it has (and apparently not involving any consumer groups in consultations yet) has the Public Interest Advocacy Centre worried. “If you design a program without the input of low income Canadians, it’s going to be selective, it may not be what they need and it might reduce their choice of what they need to participate,” warned PIAC’s executive director John Lawford.
Immediate assistance is needed for those which decreased market prices may never reach, those who are cutting back on food heat or clothing in order to have wireless or broadband, which “is not acceptable in today’s society,” said Lawford.
This is why Rogers, with its Connected For Success low-cost program, and Telus, with its Internet for Good program (both of which offer qualified households broadband for $10/month) should be lauded – and were by the minister. (Ed note: It says here other carriers should already be following the lead of Rogers and Telus.)
Bains also told reporters the framework for the 600 MHz wireless spectrum auction will be released “in the coming weeks.”
Independent network owners and ISPs praised the Minister’s announcements Monday. “It’s a great step forward to bridge that digital divide that we have talked about and witnessed year after year,” Bishay told Cartt.ca. “Here in Canada we have fallen behind all of the G7 countries but the efforts have to be a lot more collaborative. What this shows is there is finally some collaboration because it doesn’t happen often where the minister has to overrule a CRTC decision,” he added.
Cogeco Connexion president Ken Smithard was happy to hear the decision to have the CRTC review the roaming decision because it may well open the door for the cable and broadband company to offer a wireless product with an MVNO, something it has long wanted.
“The announcement of the Wi-Fi-first and re-examining the whole roaming regulations was very interesting for us, particularly – and something that we’re excited about.” – Ken Smithard, Cogeco
“The announcement of the Wi-Fi-first and re-examining the whole roaming regulations was very interesting for us, particularly – and something that we’re excited about,” he said. (For more on Smithard and Cogeco, click here.)
"CNOC (the Canadian Network Operators Consortium) agrees with the Minister's statements about the importance of the availability of competitive service choices and affordable high-speed Internet services to all Canadians," said Matt Stein, CNOC's vice-chair and CEO of Distributel. "With respect to wireless services, new types of wireless services, competitive choices, and increased competition from MVNO service providers are necessary to enable all Canadians to benefit from increased choice, new innovative services and affordable prices."
“This is a fresh approach to kick-starting mobile competition in Canada,” said Teksavvy chief legal and regulatory officer Bram Abramson, in a release. “In other countries, Wi-Fi-first carriers are able to enter the market and help promote competition. There’s no reason we cannot create the same environment that would let Canadian and foreign investors – and attract innovators who make the market more competitive from every direction.”
Canada’s mobile wireless market remains dominated by a few powerful incumbents, added a release from the Canadian Cable Systems Alliance. So far, very few smaller, independent communications companies have been able to offer their often rural and remote customers any form of mobile phone or data services. So, “the task at hand,” said CCSA’s CEO, Jay Thomson, “is to improve the availability and affordability of communications services to all Canadians. To do that, we need an environment that encourages the use of all of the best available technologies and that encourages participation by innovative players, large and small. CCSA looks forward to participating in the initiatives ISED has announced.”
Two of the five big network operators responded to requests for comment from Cartt.ca. “We listened with great interest to Minister Bains’ statements this morning at the Canadian Telecom Summit. The Minister covered many important topics affecting Canada’s future in the digital economy and we appreciate his strong commitment to facilities-based competition and his acknowledgement of Canada’s world class wireless networks. In particular, we look forward to participating in the upcoming proceeding to investigate how a Wi-Fi service could be enabled while maintaining the investment incentives the Minister emphasized and limiting any roaming on the macro wireless networks to incidental roaming only,” said a Telus spokesperson in an email.
Added David Watt, senior vice president, regulatory of Rogers Communications: “We’re encouraged the government has recognized our investments to deliver world-leading networks and the need for continued facilities-based investment. We share the government’s concern about the digital divide for low-income Canadians, which is why we’ve taken action to provide low-cost broadband with Connected for Success and offer a range of wireless plan options through Rogers, Fido and chatr. We look forward to working with the CRTC to examine creative ways to bridge the digital divide and maintain fast and reliable networks.”
Photo by Howard Solomon.
