Canada Sets Out to Revamp Telecom Framework

In a recent article in The Globe and Mail, the newspaper speculated about the implications of a major federal legislative review of telecommunications regulation. In the 2005 Federal Budget Plan, which was released last week, several initiatives were announced that will change how Canadians interact with the industry. The Budget Plan and comments in a recent speech by the Minister of Industry have given rise to speculation about the future role of the Canadian Radio-television and Telecommunications Commission (CRTC) and of foreign ownership restrictions in an era that has seen new technologies, especially the Internet, seemingly outpace the set of rules and structures in place for many years. In particular, the CRTC has been criticized as being too slow to respond to issues, and generally powerless to enforce its rulings. A government source indicated that Industry Minister David Emerson will create a review panel of three people who will be expected to report back to him before year-end with concrete advice. The reviewers, according to the Budget Plan, will be eminent Canadians, who will have the mandate of making recommendations to modernize the telecommunications regulatory framework to the benefit of the industry and consumers. The panel will also address the issue of foreign ownership of telecommunication companies, but not until some time in 2006. In the meantime, the Budget Plan makes a call to give the CRTC the ability to fine companies, which would give the agency more power to enforce its directives. The Budget Plan also briefly highlights some other changes, including making wireless phone numbers portable between companies and areas, so that customers can take their number with them an initiative which has been implemented in some US jurisdictions already. 2005 Federal Budget Plan: http://www.fin.gc.ca/budget05/bp/bpc4ee.htm. The full text of the newspaper article can be found at: http://www.friends.ca/News/Friends_News/archives/articles02230501.asp. Summary by: James Kosa