The Next Chapter of Change in the Telecom Sector Announced by the Canadian Government

As predicted in an earlier issue of E-TIPS® ("Fundamental Changes Looming in Canadian Telecom Policy", Vol 4, No 19, March 29, 2006), the current Canadian government is continuing to implement changes recommended by the Telecommunications Review Panel which are consistent with the government's own strategic goal of reducing regulation in the telecommunications sector. The latest example is the decision to permit competition in local phone markets in which two or more big phone, wireless or cable companies operate. Once again, this expression of government policy is contrary to a position taken by the federal telecom regulator, the Canadian Radio-television and Telecommunications Commission (CRTC). Earlier in 2006, the CRTC had announced that it would forebear from regulating local phone markets only after a former monopoly phone company had lost 25% market share in a defined geographic area. By contrast, the newly announced government policy conditions the introduction of competition on the level of the existing competitive infrastructure, not on levels of market share. According to the announcement by the Minister of Industry, this will accelerate deregulation while still maintaining existing safeguards to protect consumers such as a price ceiling for stand-alone residential services and continuing price regulation in regions where there is little competition. The proposal appeared in the Canada Gazette for a 30-day comment period commencing December 16, 2006. For a copy of the government announcement, a Regulatory Impact Analysis Statement and the proposed Cabinet Order, visit: http://masl.to/?D27E2656E For commentary from The Globe and Mail, see: http://masl.to/?C19E2556E To file comments during the comment period, visit: http://canadagazette.gc.ca/partI/2006/20061216/html/commis-e.html#i4 Summary by: The Editor