OTTAWA, June 6, 2005 -- The Telecommunications Policy Review Panel today launched its formal stakeholder consultation process by releasing a consultation document inviting input from interested stakeholders. The panel hopes to obtain a wide range of submissions to gain a better understanding of the pressing issues concerning telecommunications policy, such as telecommunications regulation, and the access and adoption of advanced information and communications technologies. The goal is to develop recommendations that will provide for the best long-term telecommunications policy and regulatory framework for the benefit of all Canadians. The panel has been asked to deliver its report by the end of 2005. Due to this short timeframe, the panel will rely on submissions from interested parties as its primary means of gathering information. The first round of the consultation period ends August 15, 2005, followed by a 30-day period for parties to reply to the submissions of other parties, ending September 15, 2005. The consultation document can be viewed at http://www.telecomreview.ca, which is also where interested stakeholders can register to make submissions or obtain further information on the panel's work. The Web site is intended to provide a forum for furthering the dialogue on the development of a new telecommunications policy and regulatory framework for Canada. The Telecommunications Policy Review Panel was established by the Minister of Industry on April 11, 2005. Dr. Gerri Sinclair, Hank Intven and André Tremblay were the members appointed to the panel. - 30 - For further information, please contact: Media Relations Industry Canada (613) 943-2502 BACKGROUNDER Telecommunications Policy Review Panel Releases Consultation Paper The Telecommunications Policy Review Panel was established by the Minister of Industry on April 11, 2005 to conduct a review of Canada's telecommunications policy and regulatory framework. The Minister appointed Dr. Gerri Sinclair, Hank Intven and André Tremblay as the members of the panel. The panel has been asked to deliver a report by the end of 2005. Due to the short time frame for the completion of its report and to the breadth of its terms of reference, the panel will rely heavily on submissions from the public to assist in the development of its recommendations. The panel has developed a Consultation Paper to assist in focusing submissions on the areas it has been asked to review -- namely, the telecommunications regulatory framework, access, and Canadian adoption of information and communications technologies (ICT). This Backgrounder highlights some of the main areas in which the Consultation Paper invites submissions. The Changing Telecommunications Environment The paper describes the changes taking place in telecommunications technologies and markets and discusses likely future developments. It provides some perspectives on those changes and developments and seeks comments on whether those perspectives are accurate. More generally, the paper invites submissions from industry stakeholders and others on how telecommunications technologies and the industry will change over the next 10 years. The premise of the paper goes beyond the question of whether the current policy regulatory framework needs to be fixed. It also asks whether changes should be made to this framework to better equip Canada to reap the future benefits from developments in telecommunications and other ICT as these become more powerful enablers in the lives of Canadians. The Regulatory Framework The paper asks fundamental questions about the nature and purposes of regulation -- and the possible need to change the regulatory framework to respond to technological and market changes. It seeks submissions on why governments should intervene in telecommunications markets, what policy objectives should apply to such intervention, and what types of economic, technical and social regulation may be required to implement such objectives. The paper questions whether the current objectives set out in the Telecommunications Act should be changed, and if so, what should the objectives be? On economic regulation, the paper seeks submissions on whether the objectives and approaches to economic regulation set out in the Telecommunications Act, and developed by the Canadian Radio-television and Telecommunications Commission (the CRTC) are still appropriate, in light of changing technologies, and changing telecommunications and ICT markets. The paper considers such issues as the appropriateness of the traditional public utility principles to regulate modern telecommunications markets, the best way to regulate the remaining 'market power' of the previous telephone monopolies, and the right mix of advance regulatory prescription of market behaviour ("ex ante regulation") and after-the-fact review of possible abuses of market power ("ex post regulation"). Technical regulation is described broadly in the paper, to include regulation of the radio-spectrum, technical standards and equipment by Industry Canada; access to telecom infrastructure, such as towers, poles, rights of way and wiring in multi-unit buildings; and the regulation of interconnection and telecommunications numbers by the CRTC and industry organizations to which it has delegated responsibility. Submissions are sought on the best way to deal with a range of issues that relate to such forms of technical regulation. The term 'social regulation' is used in the paper to address a variety of issues related to social values, such as consumer protection, privacy, access by disabled consumers and public safety. The panel seeks submissions on the appropriateness of the current regulatory framework for social regulation, and on changes that may be required to respond to changing technologies, increased competition and evolving telecom markets. Regulatory Institutions After asking why governments should regulate, the paper moves to a discussion of how different government bodies should operate -- and co-operate -- to implement the regulatory framework, especially taking into account changes in the telecommunications environment. The paper considers the different types of policy-making and regulatory functions of government and regulators -- such as, policy development, rule making, authorization, dispute resolution, enforcement and appeals. It asks how those tasks should be allocated among government and regulatory bodies. The paper asks what steps could be taken to improve the efficiency and effectiveness of policy-making and regulation. It also asks whether there are ways to clarify and reduce overlap between the regulatory responsibilities of Canada's current regulators of telecommunications markets, including the CRTC, Industry Canada, and the Competition Bureau. The paper asks that submissions take into account the changes, including convergence, of communications technologies and markets. Canada's Connectivity Agenda The panel's terms of reference ask it to recommend mechanisms to ensure Canadians continue to have an appropriate level of access to modern telecommunications services. In this regard, the paper starts by asking for submissions on the current and future level of Canadian access to broadband and advanced ICT. It then asks whether government or regulatory intervention is required to expand Canada's network connectivity -- or whether such expansion should be left to market forces. If further government or regulatory measures are warranted to increase Canada's connectivity, the paper seeks comments on where it is required and on the types of social and economic benefits that would justify such measures. Assuming more government or regulatory action is required, the paper also seeks submissions on what specific policies and fiscal or regulatory measures are needed to provide affordable broadband access to all communities. ICT Adoption The panel's terms of reference ask it to review the appropriateness of Canada's current level of investment in ICT. In this regard, the paper refers to the generally acknowledged relationship between ICT investment and productivity -- and asks for further data to support the existence and implications of this link. Submissions are also sought on whether Canadian telecommunications networks, businesses and governments are under-investing in ICT, given the need to maintain and increase Canada's international competitiveness. Assuming that there is a demonstrable relationship between ICT investment and Canadian productivity and competitiveness, the paper seeks submissions on what specific government and regulatory measures would be appropriate to increase investment and productive use of ICT in Canada. Other Issues The panel's terms of reference ask it to study and report on any other issues it considers essential to creating a modern telecommunications framework. The paper invites comments on such other issues. Implementation Finally, the panel asks for comments on how to implement its recommendations. Options include policy, legal and other regulatory framework changes. Given the broad range of issues raised by the panel's mandate to review the telecommunications policy and regulatory framework, the paper invites comments on what should be the priorities for its recommendations. The paper also seeks comments on the appropriate phases and timelines for implementing its recommendations. Call for Submissions Industry stakeholders and the general public are invited to respond to any or all issues identified in the Consultation Paper in accordance with their interests and expertise. The paper emphasizes that submissions that provide facts, analyses, concrete action items and other specific suggestions would best assist the panel in developing its recommendations. The panel invites interested parties to provide their views on the issues raised in the Consultation Paper no later than August 15, 2005. Parties will be able to view other parties' submissions on the panel's website (http://www.telecomreview.ca) and will have until September 15, 2005 to file comments on those submissions. Interested parties are requested to provide their submissions in electronic format to the following email address: telecomreview@ic.gc.ca. Written submissions should be addressed to the Executive Director, Telecommunications Policy Review Secretariat, Room 1031, 280 Albert St., Ottawa, Ontario, K1A 0C8. Obtaining Copies Copies of the Consultation Paper are available electronically on the panel's website (http://www.telecomreview.ca) or in hard copy from the Executive Director, Telecommunications Policy Review Secretariat, Room 1031, 280 Albert St., Ottawa, Ontario, K1A 0C8
