The Honourable Christian Paradis, PC, MP
Minister of Industry
Ottawa, Ontario
November 29, 2011
Speaking Points
Check Against Delivery
Thank you, Mr. Lord, for the kind introduction.
I am happy to be here with you today.
Now I know there has been a lot of interest and speculation about what I may have to say to you today.
Let me be crystal clear, or as we say in French: clair, net et précis.
I have consulted with my Cabinet colleagues … we have deliberated … and I can tell you that Rick Mercer will not be the next Chairman of the CRTC.
But seriously … I am really pleased to be here and share my thoughts with you.
I have had the pleasure of meeting with most of you, or senior representatives of your companies, this past summer.
Those were very important meetings for me as Minister of Industry. They were meaningful, forthcoming and informative, and they added to my knowledge of an industry sector that will play a vital role in the economic and social future of our country.
And they were in advance of significant decisions that we have before us, concerning spectrum allocation, foreign investment rules, tower sharing, roaming and how best to serve Canadians wherever they live.
And, as I have committed on the public record and in these private meetings: our government wants to get the decisions before us right, so that Canadian consumers have access to a wide range of products and services at competitive prices.
There are many competing definitions of what is the right decision.
But our government has consistently outlined a desire for the following broad outcomes:
- A robust and competitive wireless telecommunications market;
- World-leading deployment of communications options and broad access for all Canadians;
- Effective and vibrant services — things like fast download speeds and high call quality;
- Globally competitive prices for consumers, which will flow from these fundamentals; and
- A strong telecommunications sector and strong businesses.
This is a tall order to accomplish. When you look around the world, it is pretty clear that no country has a monopoly on perfection and that challenges in other places mirror those we are facing here in Canada.
So I have spent some time learning about telecommunications and about the wireless industry.
It is amazing to see how far the industry has come over the last 20 years. From one incumbent wireline telephone company to a market with numerous alternative technologies — wireless devices, Voice over Internet Protocol telephony — and as many as half a dozen competing companies in many markets. Now consumers have vast amounts of new technologies to access information from.
We have seen prices decline, while service offerings have multiplied. And with these changes have come growing complexities and convergences.
As a minister, this is a complex environment to navigate. We are not looking at one discrete policy decision but rather a balance of interconnected decisions that must be considered in concert. This is what I am weighing.
So, some of this isn't likely new to any of you, but …
The 700 MHz spectrum is very valuable. I know my colleague Jim Flaherty has his eye on the revenues this might bring.
Being focused on the bottom line isn't something new for finance ministers or business. But let's consider the other ways this spectrum is so valuable.
The engineers tell me that this spectrum has great propagation characteristics and thus can travel long distances; it can penetrate buildings — that means it is great for data and cellphone users in the city — it is also great for data and cellphone users in rural areas. Our government believes that Canadians should receive the same services wherever they live.
There can be fewer towers and antennas needed to cover an area since it travels such long distances. These are some of the reasons the spectrum is so valuable.
When it comes to the U.S., we need to ensure that our decisions recognize that Canadian companies are operating in North America and in a global market.
Especially with our relatively small Canadian market and our shared border with the United States, we need to make sure that our companies have a harmonized approach.
To do otherwise could limit access to affordable equipment and could complicate options for phone and data roaming.
The other spectrum — 2,500 MHz — brings its own unique value. It has different characteristics, but there are well-developed devices and technologies that can use this spectrum to increase capacity and quality, especially in dense urban areas.
As we look over the horizon to the future, it is pretty clear that this spectrum will increasingly be used in new ways, meaning its value will only grow as new forms of technology get out of R&D labs and into the hands of Canadian consumers.
I have also heard a number of concerns raised by all of you, regarding tower sharing and roaming. When it comes to these, the truth very much depends on who you speak to.
I can tell you that finding the balance here is not easily done, but it's something we are seized with.
Finally, this is, after all, a gathering of international telecom players. Canada already enjoys the benefits of substantial foreign investment in our telecommunications sector.
After all, it is clear that telecommunications is a capital-intensive industry. Your companies invest and reinvest in technologies at a furious pace. I recognize that this industry requires considerable capital if we are going to keep our edge as a country.
All of these pieces can fit together in a number of ways.
These decisions can and will have a major impact on both industry and Canadian consumers.
To that end, over the last couple of weeks, I have noticed a lot of market and media excitement about the spectrum file.
Some of you may be looking for an early Christmas present today … but I am afraid I am going to be a bit of Grinch.
Given the importance and the serious impact this will have on the lives of Canadians for years to come, this is not a decision that I or this government will be taking lightly.
It is a decision that we will get right, and it will be based entirely on how best to meet those objectives that I outlined at the beginning of my remarks, which were:
- A robust and competitive wireless telecommunications market;
- World-leading deployment of communications options and broad access for all Canadians;
- Effective and vibrant services — things like fast download speeds and high call quality;
- Globally competitive prices for consumers, which will flow from these fundamentals; and
- A strong telecommunications sector and strong businesses.
And when we make those decisions, we will announce them — clearly and directly.
Again, thank you for inviting me here. Merry Christmas and happy holidays to you all, and I look forward to seeing more of you in 2012.
