Appeared
in the Toronto Star on February 20, 2011 as What to do with the Newly
Surplus TV Airwaves
As public frustration with the state of telecommunications services
such as Internet access and wireless competition mounts, a relatively
obscure government consultation on spectrum deserves far more
attention. Last November, Industry Canada released a Consultation on a
Policy and Technical Framework for the 700 MHz Band and Aspects Related
to Commercial Mobile Spectrum. While the title alone is likely enough
for most to look elsewhere, no issue will have a greater impact on the
next ten years of Canadian digital policy.
The spectrum consultation is linked to this year’s digital television
transition as Canadian broadcasters will switch from analogy to digital
transmissions by August 31, 2011. The move to digital has implications
for broadcasting (some Canadians may be unable to access digital
over-the-air signals), but the bigger policy issues stem from what
happens to the spectrum that will freed-up as part of the changeover.
This spectrum - known as the 700 MHz spectrum – opens up a host of
possibilities for new innovation, competitors, and open Internet
access. It is viewed as particularly valuable spectrum since it
easily penetrates walls, making it ideal for delivering wireless
high-speed Internet services.
While some of the consultation focuses on technical issues such as
whether Canada should mirror the U.S. approach in how it divides the
spectrum (a matching approach would mean devices using the spectrum
would be compatible in both countries), there are five critical policy
questions that will have a big impact on the Canadian digital economy.
First, there are questions about who should be entitled to bid for the
spectrum. Canada’s last spectrum auction featured Canadian
ownership requirements (now the subject of litigation involving
Globalive), thereby limiting potential entrants. This auction
provides a tailor-made opportunity to eliminate foreign ownership
restrictions by opening the market to all bidders.
Second, the government has asked whether the auction should again
feature a “set aside” that reserves certain spectrum for new entrants.
The last spectrum auction included a set-aside, leading to a handful of
new entrants such as Globalive, PublicMobile, and Mobilicity. A further
set-aside may make sense since this round of new entrants may look to
use the spectrum primarily for wireless broadband services, providing a
potential alternative to the cable and telco dominance.
Third, the government asks if it should establish “open access”
requirements, mandating certain openness standards in the use of this
spectrum. For consumers tired of the “walled garden” approach of
current providers that use both contracts and technology to lock-in
consumers, open spectrum policies would spur new innovation and
heightened competition by facilitating greater consumer mobility and
promote the introduction of new services not tied to a single wireless
provider.
Fourth, the government opens the door to allocating some spectrum for
unlicensed purposes. Often referred to as “white spaces”, this spectrum
was previously used by broadcasters to ensure that their analog
broadcasts did not interfere with one another. Today, the same spectrum
could be used for new services without the need for licences or
government regulation.
Fifth, though not part of the consultation document, a key question is
what the government should do with the billions of dollars that will be
generated by the auction. While the proceeds from the last auction went
into general revenues, this auction represents the best – perhaps only
– opportunity to access billions of non-tax dollars for the digital
economy. The money could be used to support broadband
initiatives, digital content creation, and digital skills programs.
If Industry Minister Tony Clement gets this right, the next spectrum
auction could provide the foundation for a more competitive Internet
marketplace with new entrants, innovative wireless broadband services,
and the funding to support digital economy programs.
Michael Geist holds the Canada
Research Chair in Internet and E-commerce Law at the University of
Ottawa, Faculty of Law. He can reached at mgeist@uottawa.ca or online
at www.michaelgeist.ca.
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IMSLP, the International Music Score Library Project, is back in the
news as the NY Times covers
its popularity and pressure from some music score publishers. The site
attracted significant
attention
in 2007 when it received takedown threats from some European
publishers. Note that contrary to the NY Times characterization
of
Canadian copyright as "generally looser", the key legal issue for IMSLP
is the term of copyright protection. Canadian law provides life of the
author plus 50 years, consistent with the requirements in the Berne
Convention.
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The Globe and Mail has a masthead
editorial calling on the government to drop foreign investment
restrictions on telecommunications.
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Peter Nowak has a terrific
post that responds to ten frequently heard myths about usage based
billing.
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