Transcript No Slide Title

CANADIAN
TELECOMMUNICATIONS
IN TRANSITION
Ariane Siegel
Telecom 101
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Glossary
Framework
Driving Force
Competition
Constitutional
Telecom Policy
Telecom Players
Telecom Glossary
• LEC= Local Exchange Carrier
• ILEC= Incumbent Local Exchange
Carrier (e.g. Bell Canada)
• CLEC= Competitive Local Exchange
Carrier (e.g. AT&T)
Telecom Glossary
• CISC= Canadian Interconnection
Steering Committee
• BAIW= Building Access and Inside
Wiring
• MTR= Main Terminal Room
• MDU= Multi Dwelling Unit
The Regulatory Framework
FEDERAL JURISDICTION
Railway Act
Telecommunications Act
Broadcasting Act
CRTC
HERITAGE CANADA
INDUSTRY CANADA
Telecommunications
Culture
Radiocommunications
Spectrum Allocation
Introduction of Competition
CRTC LANDMARK
RULINGS ON COMPETITION
LONG DISTANCE
LOCAL
INTERNATIONAL
1992
1997
1998
Driving Forces
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Technological development
Geography
Nature of political system
Commercial needs
Social and community interests
U.S. developments
Globalization
Constitutional Issues
• The federal government’s exclusive power
to regulate communications has been
grounded in several heads of power under
the Constitution Act, 1867 and confirmed
by case law .
• Compelling interests –provincial and
municipal—regarding these fields. Interest
in issues including economic and cultural
issues, regulation of land use, need to
maximize property values and health and
safety
Constitutional Issues
• Telecommunications Act is principal piece
of legislation
• Except for persons landing international
submarine cable, or providing basic
international telecommunications services,
telecommunications service providers
(including telecommunications common
carriers) are not required to hold licences
in order to be able to operate.
Telecom Policy
• 7.
• (a) to facilitate the orderly development throughout Canada
of a telecommunications system that serves to safeguard,
enrich and strengthen the social and economic fabric of
Canada and its regions;
• (b) to render reliable and affordable telecommunications
services of high quality accessible to Canadians in both
urban and rural areas in all regions of Canada;
• (c) to enhance the efficiency and competitiveness, at the
national and international levels, of Canadian
telecommunications;
• (d) to promote the ownership and control of Canadian
carriers by Canadians;
Telecom Carriers
• “telecommunications
common
carrier” means a person who owns or
operates a transmission facility used
by that person or another person to
provide telecommunications services
to the public for compensation”;
Telecom Carriers
• Entities that own or operate transmission facilities qualify as
“telecommunications common carriers” and are subject to
regulation by the Commission.
Entities that use
transmission facilities to provide service to the public
(resellers) would be exempt from much regulation.
• The Commission suggested that only resellers that offer
end-to-end basic telecommunications service by means of
interprovincial services or facilities that they configure, and
where they exercise control over the carriage and routing of
traffic would be caught be the definition of “companies”
operating telegraph or telephone systems under the Railway
Act.
• In June, 2012, Bill C-38 came in force and removed foreign
ownership limits for entities with less than 10% mkt share.
LECs
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Facilities based
Must be Canadian (ownership and control)
What is Canadian
Telecommunications Common Carrier Ownership
and Control Regulations (the “Regulations”). The
Regulations allow non-Canadian to own up to
331/3% of a carrier’s holding company. Together,
the Act and the Regulations bring total direct and
indirect foreign investment limits on Canadian
facilities-based carriers to 46.7%. (Apply only
where entity has greater than 10 % market share).
LECs-Canadian Owned
• Since June 29, 2012, only LEC carriers with greater than
10% market share must meet foreign ownership limits.
• Telecommunications Common Carrier Ownership and
Control Regulations (the “Regulations”). The Regulations
allow non-Canadian to own up to 331/3% of a carrier’s
holding company. Together, the Act and the Regulations
bring total direct and indirect foreign investment limits on
Canadian facilities-based carriers to 46.7%.
Long Distance Providers
• Extent of regulation depends on whether facilities
based
• If yes, must be canadian owned and control
• Subject to Telecom Act
• CRTC forborne from most active regulation
Resellers
• Register
• Pay contribution
• Comply with other requirements e.g. privacy, 911.
International Service Prov
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Register
Facilities based or resale
Licence for provisions of international service
Pay contribution
ISPs
• Extent of regulation depends on whether facilitiesbased
• Lighter regulatory regime
• Pay contribution
Wireless
• Forborne from regulation
• Some exceptions –E911, privacy, ownership of
spectrum
• Ownership of spectrum-radiocommunications
carriers
• Canadian ownership and control requirements
that are the same as those in Telecom Act
• Business of providing wireless-other federal and
provincial laws of general application
• Criminal, Consumer Protection, Competition Act,
Wireless
• Text Messaging
Other Voices
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So far this is about the businesses
What about users
Residential customers
Business customers
Commissioner for complaints- new regime
New players-WIFI, VOIP, Real Estate Owners
CISC