Question Period Note: CRTC POLICY DIRECTION

What is the Government of Canada doing to enhance competition, consumer interests, and affordability for telecommunications services?

• The Government of Canada has been clear that greater affordability, competition, and reliability in the telecommunications sector have never been more crucial for Canadians.
• That is why the government has taken action to make services more affordable, including introducing spectrum policies that promote competition, holding service providers to account for their pricing, and issuing a policy direction to the Canadian Radio-television and Telecommunications Commission (CRTC).
• This policy direction requires the CRTC put in place rules to improve competition and support consumers, resulting in lower prices and better, more reliable services.

The policy direction to the Canadian Radio-television and Telecommunications Commission (CRTC) aims to:

Enhance wholesale Internet access and competition for more affordable Internet - The policy direction requires large companies to continue to give access to competitors at regulated rates and take action to have more timely and improved wholesale rates available. It directs the CRTC to preserve and strengthen the wholesale framework through the introduction of a new access model, taking into account new technologies such as fibre-to-the-home networks, at a variety of speeds. Since the launch of the proceedings, the CRTC has moved in a timely manner, issuing an expedited decision in November 2023 mandating wholesale access to fibre-to-the-home networks in Ontario and Quebec using the new access model and expanding that mandate nationwide in August 2024. The CRTC will decide on interim wholesale rates by the end of 2024, with final rates to follow.

Increase mobile wireless competition for more affordable cellphone plans - The proposed policy direction directs the CRTC to improve its hybrid mobile virtual network operator (MVNO) model as it is being implemented over the coming years. The government is prepared to move to a full MVNO model, if needed, to support competition in the sector. The CRTC has completed final offer arbitration processes to enable competitor access to MVNO, which has enabled more wireless competition including in Manitoba.

Improve consumer rights so Canadians can make better-informed choices - The policy direction requires the CRTC to implement measures to address unacceptable sales practices and improve transparency and clarity of service pricing, making it easier and more affordable for consumers to change or cancel services. Furthermore, it requires service providers to implement mandatory broadband testing so Canadians will know that the service they’re getting is what they’re paying for. The policy direction also directs the CRTC to improve accessibility of telecommunications services for Canadians with disabilities, to improve consumer protection in the event of a service outage, and to strengthen the Commission for Complaints for Telecom-television Services (CCTS). The CRTC is also required to take steps to raise the public awareness of the CCTS and its powers to resolve disputes for consumers.

Speed up service deployment and universal access - The policy direction requires the CRTC to improve access to telephone poles and similar infrastructure so service providers can deploy new services more quickly and continue implementing and adjusting its Broadband Fund to meet connectivity needs across the country in coordination with other programs. The CRTC implemented new rules for access to poles in February 2023 and launched a review of its Broadband Fund in March 2023.

Build better regulations - The policy direction requires the CRTC to use the tools available to gather the necessary information to make sound decisions while being more proactive in strategic planning and market monitoring. Furthermore, it directs the CRTC to ensure that its regulations are efficient and proportionate to their purpose, balancing economic regulation with competition and investment considerations. The CRTC separately enhanced its resources which will improve decision timeliness.

Policy Direction

• The policy direction supports the Government of Canada’s efforts to ensure that telecommunications services are innovative, competitive, reliable and, most crucially, affordable.
• The policy direction provides specific instructions to the Canadian Radio-television and Telecommunications Commission (CRTC) to enhance and improve wholesale Internet access and competition, along with giving the CRTC improved support to better regulate going forward.
• The Government is also providing the CRTC with clearer direction on a number of important matters, including measures to support wireless competition, improve consumer rights, speed up service deployment and universal access, and build better regulations for a world where telecommunications are essential.
Wholesale Access to Internet
• The Government of Canada has heard from wholesale-based competitors that it is difficult for them to compete.
• The policy direction demonstrates a firm commitment to an effective and sustainable wholesale regulatory framework. It also instructs the CRTC to be more timely and proactive.
• On March 8, 2023, the CRTC launched a review of its wholesale framework and has been quick to issue decisions to provide wholesale access to fibre networks.
• In terms of Bell’s petition to the Governor in Council on access to fibre, the Government is following the process required under the Telecommunications Act and will issue its decision in due course.