CRTC defends regulatory policies in Senate, asserts lower prices for consumers

The CRTC defended its telecommunications mandate before a skeptical Senate panel Tuesday, telling the transport and communications committee that past practices are leading to lower prices for consumers. The committee is looking at telecom measures contained in the federal budget and the legislation to implement it, Bill C-69. “We promote choice and affordability for Canadians, encourage investment in reliable and high-quality networks, and work to improve access to telecommunication services in Indigenous, rural and remote communities,” Scott Hutton, chief of consumer research and communications for the commission said in French. He stressed that the regulator takes consumers very seriously. Hutton pointed to the wireless code introduced in 2013 and the internet code brought in back in 2019 as concrete steps to help customers. “We continue to explore ways that we can improve the codes to protect consumers from unreasonable charges and improve their ability to choose plans that best fit their needs,” he stated. Paula Simons of the Independent Senators Group asked what powers the legislation would give the CRTC that it does not already possess. Hutton responded that the commission would have additional policy cover, providing enhanced legislative support and clearer guidelines. Policy cover and precision will help the regulator do its job, he added. Hutton engaged in a lively back and forth jousting with committee chair Leo Housakos. The Conservative senator said the wireless providers have become a powerful oligopoly over the past few years. “Why have you failed and why has this happened under your watch?” he asked. Hutton explained the changing landscape of the wireless market. “Our country does pay some of the highest rates in the world, as you indicate,” he said. “We’re also amongst the highest levels of investment across the world. We’re at the forefront of technology deployment and coverage, although there’s a lot that needs to be done.” Canada is no longer the most expensive nation when it comes to wireless pricing, he added. Prices in the United States have risen while Canadian rates have fallen. When Housakos posited that the CRTC may not be the right agency to guide the telecom sector, Hutton rejected the premise. “The CRTC is the right body on this front,” he asserted. The commission came under attack earlier in the day from other witnesses. Matt Hatfield, executive director of OpenMedia, said the competition model the CRTC has been promoting is doomed to failure. “It should be as easy as possible to switch carriers. The proposed changes may help,” he stated. “They may even have a very modest pro-competition impact. But we’re still moving chairs around on the deck of a deeply tilted system.” It is not easy to switch carriers if there are no new carriers to switch to, he opined. Quebecor Inc.’s Videotron, which purchased Freedom Mobile from Shaw Communications, has advantages Shaw did not, but also faces disadvantages, he added. Also endorsing the government bill was the Public Interest Advocacy Centre. Executive director and general counsel John Lawford urged the senators to pass the legislation. “This bill is a very strong indicator to the CRTC to do its job. We heartily agree,” he said. The proposal will improve telecom markets for Canadians and give them much needed control, he claimed. – Reporting by Paul Park at ppark@thewirereport.ca

CRTC defends regulatory policies in Senate, asserts lower prices for consumers

News | May 28, 2024

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CRTC defends regulatory policies in Senate, asserts lower prices for consumers

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