Earlier this week, I was invited to appear before the House of Commons Standing Committee on International Trade to discuss the benefits of the Trans Pacific Partnership, a proposed trade agreement involving the U.S., Canada, Australia, New Zealand, and a handful of other Asian and South American countries. My comments were critical of the proposed agreement as I focused on two issues: copyright and secrecy. The opening comments sparked a lively debate, with the NDP MPs tabling documents I obtained under the Access to Information Act detailing inside access to TPP information for select stakeholders and the Conservative MPs alternately questioning the validity of leaked texts and providing assurances that draft text could change before the final agreement is concluded. I’ll post the transcript once it is available. In the meantime, my opening remarks are posted below.
News
The Canadian Wireless Debate is Over: How the Incumbent Carriers Lost the Support of the Government
For the past few years, there has been a lively debate on the state of the Canadian wireless marketplace. Consumer advocates and others have argued that Canadian market is not sufficiently competitive and that aggressive policy action is needed to foster greater competition and to adequately protect consumers until market forces can be fully relied upon. The incumbent telecom companies and the CWTA present a far different story, contesting multiple international studies and painting Canada as a market leader.
The events of this week – the introduction of a CRTC consumer wireless code and the Industry Canada decision to uphold its set-aside spectrum policy by killing the Telus – Mobilicity deal – point to the fact that this debate is now over in the minds of the government. Government telecom policy in 2006 was focused on deregulation and a hands-off, industry-led approach. Those days are long gone as the government has now adopted a consumer-focused, populist approach premised on the view that a public fight with the telecom companies is a political winner. Moreover, the government may have shifted, but the incumbent providers clearly have not, failing to adapt to the new policy terrain.
Government’s Wireless Policy Still Not Connecting as it Kills the Telus – Mobilicity Deal
Industry Minister Christian Paradis surprised some analysts this morning by announcing that the government would not approve Telus plans to purchase Mobilicity. The decision is entirely defensible. The government established clear rules on transfers of spectrum that was set-aside in 2008 that prohibited transfer to incumbents within the first five […]
Discussing the CRTC Consumer Wireless Code on CTV’s Power Play
I appeared yesterday on CTV’s Power Play to discuss the CRTC’s Consumer Wireless Code. The video can be accessed here.
CRTC Releases New Wireless Code That Should Eliminate Three Year Contracts
The CRTC released its much-anticipated consumer wireless code this morning. While much of the code remains unchanged from an earlier draft proposal, the headline-grabbing change is that the Commission has effectively brought three-year contracts to an end. The issue of contract length was the top issue raised by consumers, who argued that Canadian wireless contracts were longer than most other countries and that they represented a significant barrier to effective competition.
While the incumbent wireless carriers argued that consumers like three-year contracts, the CRTC sided with consumers. Effective December 2, 2013, consumers will be allowed to terminate their wireless contracts after two years with no cancellation fees. The ability to cancel with no further costs should result in two years becoming the standard for a long-term wireless contract. It will be interesting to see how quickly the carriers implement this change as smart consumers may decide to delay signing new contracts unless they are protected by the new wireless code if the carriers insist on retaining early cancellation fees in the final year of a three-year contract until the code takes effect.
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