Speaking Points
The Honourable Christian Paradis, PC, MP
Minister of Industry
Ottawa, Ontario
June 4, 2013
Check Against Delivery
Good morning everyone.
Welcome back to Industry Canada.
And thank you for joining me this morning.
Telecommunications is one of the fastest moving sectors of our economy.
And I am proud that Canada is home to a quarter of North America's fastest-growing wireless companies.
We have world-leading strengths in mobile software development.
We have first-class infrastructure.
And we have some of the most Internet-savvy citizens in the world.
We need to use those strengths to deliver cutting-edge technologies to Canadian families at affordable prices.
The basis of a strong economy is a competitive marketplace.
Consumer choice leads to better prices.
That is why our government is working to build a more competitive wireless sector.
In 2008, we set aside Advanced Wireless Services—or AWS—spectrum for new entrants to help them break into the market.
We also introduced roaming and tower-sharing policies to give them access to infrastructure.
In 2012, we provided access to capital by lifting foreign investment restrictions for companies with less than a 10-percent market share.
In 2013, we strengthened cell tower sharing rules to limit proliferation and deliver better services to consumers.
We required all companies to let competitors roam on their networks so that Canadians would benefit from better coverage.
We took steps to ensure that at least four players in every region will be able to acquire spectrum in the upcoming spectrum auctions.
And we launched a review of how the government considers licence transfer requests with the objective of promoting a more competitive environment.
These efforts are providing Canadians with access to the latest technology at better prices.
Since 2008 we have seen an 18-percent decrease in average prices for wireless services.
Our efforts are paying off.
And we will not allow this progress to be lost or undermined.
That starts with enforcing the measures we have already put in place to promote competition.
We want to see at least four wireless providers in every region of the country.
On May 16, TELUS filed an application with Industry Canada to obtain Mobilicity's AWS spectrum licences.
These licences were specifically set aside for new entrants in the AWS auction.
I have been clear.
The Government has been clear.
Spectrum set aside for new entrants was not intended to be transferred to incumbents.
That is why we had put in place restrictions on the transfers of the set-aside spectrum.
That is why I will not be approving this—or any other—transfer of set-aside spectrum to incumbents ahead of the five-year limit.
In addition, going forward, proposed spectrum transfers—including AWS spectrum transfers—that will result in undue concentration and therefore reduce competition will not be permitted.
And, to increase transparency and accountability, Industry Canada will be releasing all decisions publicly.
In the coming weeks, I will be posting this policy, which is based on recent consultations with industry and with Canadians.
It will give industry the clarity and predictability they need to chart the future of their companies.
In light of these decisions, the timing for the upcoming auction of 700 MHz spectrum will be updated.
The application deadline will be September 17, 2013, and the auction will start on January 14, 2014.
These new dates will provide companies with additional time to consider today's decisions and finalize their approaches to the auction process.
Spectrum is a public resource.
It is also a finite resource.
We will ensure spectrum is available, and allocated appropriately, to allow for robust investment in the wireless sector.
And we expect providers who are allocated spectrum to make the best use of it in a timely manner to the benefit of Canadians.
Our government will continue to put consumers first.
We will continue to promote a stronger, competitive wireless sector that allows Canadians access to the latest technologies at affordable prices.
We are seeing results.
I believe the actions we have taken will continue to promote lower prices and increased choice for Canadian families. And so I'm glad to see the CRTC is also taking action with the release of its Wireless Code of Conduct.
But let me be clear—our government will not hesitate to use any and every tool at our disposal to:
- protect consumers;
- promote competition; and
- promote at least four wireless providers in every region of the country.
Thank you.
I am happy to answer your questions.
