CANADIAN TELECOMMUNICATIONS IN TRANSITION Ariane Siegel.

CANADIANTELECOMMUNICATIONS

IN TRANSITION

Ariane Siegel

Telecom 101• 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 ActTelecommunications Act

Broadcasting Act

CRTC

Telecommunications

INDUSTRY CANADA

RadiocommunicationsSpectrum Allocation

HERITAGE CANADA

Culture

Introduction of Competition

CRTC LANDMARK RULINGS ON COMPETITION

LONG DISTANCE

1992

INTERNATIONAL

1998

LOCAL

1997

Driving Forces

• 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• 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• Register• Facilities based or resale• Licence for provisions of international service• Pay contribution

ISPs• Extent of regulation depends on whether facilities-

based• 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• 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