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Canadian Telecom Summit 2010: Government vs. Carriers

Christine Persaud


Published: 06/07/2010 10:30:34 AM EST in Features

1 comments

Canadian Telecom Summit 2010: Government vs. Carriers

In the first two keynotes at the Canadian Telecom Summit in Toronto, ON, the Honourable Industry Minister Tony Clement and Rob Bruce, President, Communications at Rogers Communications, discussed regulatory needs that will benefit the Canadian wireless industry.

"We need to facilitate competition that will benefit Canadian consumers," says Clement, echoing sentiments he has held since the Advanced Wireless Spectrum auction wrapped up in 2008 and new carriers were granted licenses.

While Clement is leaning heavily towards adjusting foreign ownership regulations to, in large part, benefit new carriers and afford greater competition, Bruce makes his position known that there must be equal rights for all carriers.

"It doesn't make sense to strengthen the weak by weakening the strong," he says.

This isn't to say that Rogers is not in favour of opening up the industry to foreign investments: the carrier just wants equal rules for all.

"We can't be limited in our ability to purchase spectrum," Bruce adds. "We need large quantities and blocks. And we need it in a timely fashion."

According to Clement, the OECD ranks Canada as one of the most restrictive countries when it comes to foreign telecom investments. Clement stresses that access to venture capital is critical, and outlines some of the moves the government has made to encourage this, including tax changes, and future telecom reform. A Website at www.digiteleconomy.gc.ca encourages consumers to contribute their ideas on Canada's approach to fostering a digital economy, in every aspect, not just foreign ownership.

"We want to ensure that both the incumbents and new carriers have their needs met," he says.

Still, there are hurdles to overcome. Clement's experience with Globalive Wireless, parent company to WIND Mobile, proved representative of a major one. The CRTC denied that company entrance into Canada based on perceived foreign ownership; but Clement begun his move toward reform by overturning the CRTC decision and giving WIND the go ahead to launch. Naturally, incumbents Bell, Rogers, and Telus were furious at the decision, citing that if foreign ownership regulations would be changed for new companies, it should be changed for all.

What's more, Bruce says that Canadian carriers pay too much for spectrum; even more than our neighbours to the south. " We pay the highest in all G7 countries and the third highest in 16 OECD countries." He cites a spectrum fee renewal that the Canadian government plans to enact in 2011 as another issue that needs addressing.

"Let's face it," he advises. "Eventually these costs get passed on to consumers."

Despite the hurdles, both government and carriers share a common goal: boosting the Canadian telecom industry to the next level. And both agree that markets should determine outcomes, not governments.

"Telecom drives economic growth, and fuels productivity," Bruce continued. "It's grease on the wheels of commerce. Everyone wants to lead the world on this front."

Bruce ended his keynote address on a nostalgic note. "If Ted Rogers were here," he said, "he would say ‘let's stop talking and let's start building."





Article Tags:  clement, bruce, carriers, canadian, foreign, telecom, spectrum, ownership, rogers, industry, countries, canada, government, wireless, consumers, needs, benefit, incumbents, decision, changed, reform, highest, company, hurdles, investments, communications,

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Canadian Telecom Summit 2010: Government vs. Carriers








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June 09, 2010, 22:27 pm

While I'm all in favour for fair competition, I find that in every case of dealing with a telecom carrier, or most large corporation, that the customer is at the butt end of the stick. Despite the fact that it's the customer that is meant to benefit from whatever service is provided. Case in point, if I am a Telus client visiting a friend who is a Rogers customer, and if I try to use my telus calling card, or attempt to charge a long distance call to my phone number, I can't because Rogers will not bill Telus and vice versa, leaving me, the client with no service. Yet, I am still obliged to pay my phone bill which includes a variety of well concocted ways of adding extra fees to my account, for which there is no justification, such as 911 fees. ( a mandatory service) If the Canadian Radio and Telecommunication Commission is the governing body for Telecommunication in Canada, why are they having such a hard time getting all carriers to cooperate and actually work for their client? The voting citizen or cash cow as we have become. It's time for both legislation and tax laws to be changed, and this time, to suit the end client whose business these companies are vying for, not the avarice of large business.

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