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CRTC chair Ian Scott isn’t leaving a legacy behind

Ian Scott took the stage at the Canadian Telecom Summit (CTS) last Monday to deliver what is likely his last speech as the chair of the Canadian Radio-television and Telecommunications Commission (CRTC).

His speech was the only thing remaining before the end of the conference day, and Scott joked that he would take his time on stage. A slight chuckle later, Scott was back in presentation mode, an approach he often took when it came time to talk about the CRTC.

MobileSyrup sat down in a small room steps away from the main stage with Scott soon after. He said he hadn’t done many media interviews since taking on the role in September 2017. Small talk consisted of a couple of chuckles and discourse on social norms, but as soon as the recorder came on, Scott, in typical fashion, got serious.

Pointing at his last five years in the role, Scott labelled a question asking him to describe his time as chair as being too broad before specifying the CRTC has “done important things,” pointing to his CTS speech as an example. One aspect of his speech focused on closing the digital divide in Canada.

“I have no bias. I have no view.”

Scott provided little to no explanation for why any CRTC decision was rendered the way it was, saying chairs are only one of nine votes. The CRTC tries to get as many Canadians to participate in the process, which staff analyze and advise members before making decisions. But every decision will have winners and losers, he said.

Asked how he feels about views stating he did more for telecom companies than Canadians, Scott said he doesn’t agree with the notion that’s been “promulgated by some parties.” He insinuates some of this might also come from the decisions the CRTC makes.

“We render decisions we think balance all of that evidence,” Scott said. “Those who are unhappy with it, whether it’s for economic or other reasons, are entitled to their view, but it doesn’t change anything.”

The one view Scott opted to discuss in the interview involved accusations of bias against him and his previous work with Telus. Once a vice president for the telecom giant, Scott said he doesn’t “understand” what that has to do with his role as chair of the CRTC. He also appeared puzzled as to why people don’t reference his time at other telecom companies, such as Sprint Canada.

“Something about trying to paint a particular picture,” he said. “I have no bias. I have no view.”

When asked about his thoughts on people saying the CRTC is at least partially responsible for the high rates for internet Canadians pay, he said the internet market isn’t rate regulated. “It’s a competitive market, and the commission has never regulated internet rates nor mobile rates.”

He said the only place internet rates were regulated was in the Northwest Territories, where it was found there wasn’t enough competition. “We don’t have intense enough price competition,” Scott said on the matter. The Commission has tried to address this over the past decade through the resale and wholesale model, but it didn’t have the desired effect, he said.

In 2019, the CRTC concluded wholesale internet rates were too high and needed to be lowered. However, the CRTC reversed the decision after telecom companies, including Bell, filed appeals. The CRTC said it ultimately made a mistake in its original decision. Scott’s meeting with Bell executive Mirko Bibic was brought up as a contention for the decision, which Scott strongly denied.

“The rates need to be lower, we need to have more intensive price competition. The commission has and will continue to find the right formula. Right now, the framework that’s there is not producing the desired results,” Scott said.

Scott was originally supposed to vacate his role months ago but had it extended as the government looks for a new chair that’s capable of taking on a role that has evolved since Scott first took it up. The chair’s mandate involves new avenues, such as regulating content through streaming services.

“Our job is to identify the issues, build that record, render decisions.”

It’s not clear if Canadian Heritage, the government department responsible for the hiring, is any closer to finding a candidate. Laura Scaffidi, Press Secretary to Canadian Heritage Minister Pablo Rodriguez, told MobileSyrup that the successful candidate will be announced in “due course.”

If given the opportunity, Scott said he would do this all over again. “It’s an important organization, and it’s important work. I have the utmost respect for it and its staff.”

Asked what he thinks his legacy was, Scott said he doesn’t have one. He said when he started, people wanted to know what his vision was, and now they want to know the legacy.

“Our job is to identify the issues, build that record, render decisions. If we do that well, and if we respect principles of administrative law, [and] if we reach more Canadians than we did previously, then we’ve done a good job.”

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Mobile Syrup

ISPs and advocacy groups say new CRTC policy does nothing to address current sky-high internet rates

The federal government’s new policy direction to the Canadian Radio-television and Telecommunications Commission (CRTC) is a positive move in the long-term but does little to appease the current burden of high-internet rates, advocacy groups, and internet service providers (ISPs) say.

The policy direction doesn’t impact wholesale internet rates currently in place but lists a new set of ideas and objectives the government says will improve competition and affordability. The direction lacks detail about how this will happen and is still subject to parliamentary approval.

It further eliminates two previous policy directions that created conflicts. The first, introduced in  2006, focused on encouraging telecom companies to invest in networks. The second asked the CRTC to focus on affordability, competition, and consumer rights. The Liberals introduced the policy in 2019.

The direction also appears to wipe clean a slate that saw CRTC chair Ian Scott engulfed in a controversy that intensified after meeting with Bell executive Mirko Bibic.

In May 2019, the CRTC found that wholesale internet rates were too high and had to be lowered. ISPs and advocacy groups welcomed the news, but it saw appeals from leading telecom corporations, including Bell.

One week after Bell filed an appeal, Bibic and Scott were pictured in an Ottawa pub having beers. Scott maintained the meeting was on the books, and he followed all the rules. But many said the meeting was inappropriate as a file on the matter was currently open.

The CRTC reversed the decision in May 2021, saying it made it in error. The move led to several appeals, including one by ISP TekSavvy.

TekSavvy

The company says the new policy direction “endorsed higher internet prices and misconduct by the head of the CRTC.” While the ISP acknowledges the approach could lead to competition, it ignores appeals that would see lower wholesale internet rates first outlined in 2019.

“Instead of immediately lowering prices by overturning a bad CRTC decision, it is asking us to hold out hope that the CRTC will do better in the future,” Peter Nowak, a TekSavvy spokesperson, said.
“This lack of action and faith-based policy approach is why competitors will continue to exit the market and Canadians will continue to pay some of the highest telecom prices in the world.”
TekSavvy filed an appeal on May 28th, 2021, asking the government to overturn the 2019 rate and see Scott excused from matters relating to wholesale internet. The new direction didn’t address this. Further comments the Minister of Innovation, Science and Industry, François-Philippe Champagne, made also ignored this part of the appeal.
This may be because Scott’s time as chair is coming to an end. The government appointed him to the position in 2017 for a five-year term. According to the Globe and Mail, Canadian Heritage is currently accepting applications for a new chair to fill the role.

Distributel

Distributel Communications also took issue with the government not acting on the appeals. The company says the new policy direction addressed longstanding issues but does nothing to address high internet rates in the short-term.
“The government had a real opportunity to act on those appeals and mandate lower wholesale rates,” Matt Stein, Distributel’s CEO, said. “[It] would have put money back into the pockets of Canadians. That would have had an immediate impact.”

Other groups

The Competitive Network Operators of Canada (CNOC) said the new policy direction is encouraging, as it offers a plan that will see more competition and lower internet bills. The group also filed an appeal in 2021, asking for the 2019 rates to be restored. CNOC says it’s disappointed the appeal was denied but remains “hopeful that this new and targeted policy direction will make a difference.”

Open Media, an advocacy group that, in part, focuses on internet affordability, shared similar thoughts.

“Our government agreed the CRTC is failing Canadians — yet did nothing immediate to fix it,” Matt Hatfield, OpenMedia’s campaigns director, said. “The good news [the] announcement is that the CRTC we have today is clearly out of step with the government’s new objectives.”

Industry players have sixty days to review and provide comments on the new policy directions.

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Mobile Syrup

Government issues wholesale internet policy direction maintaining current internet rates

Innovation, Science, and Economic Development Canada has proposed new policy directions to the Canadian Radio-television and Telecommunications Commission (CRTC) it says will improve competition in the telecom sector.

The new policy doesn’t impact wholesale internet rates currently in place or reinstate the CRTC’s 2019 finding that rates were too high and needed to be lowered. Instead, it focuses on a new set of ideas that the government says will support its efforts to be competitive and affordable.

Wholesale internet

The new policy will enhance wholesale internet access and competition for affordable internet services by requiring large companies to give competitors access to regulated rates, leading to more options for Canadians. The policy will also see larger companies make speeds demanded by Canadians available to internet service providers (ISPs) who can provide this. The CRTC is also directed to ensure wholesale internet access is available across all markets.

CRTC Chair Ian Scott said the 2019 decision was made in error and was reversed in 2021. This led to a number of petitions that challenged the move, including one by TekSavvy. The company launched a recent campaign telling Canadians the government had until May 27th to respond.

Mobile competition

The policy further directs the commission to make improvements to its hybrid mobile virtual network operator (MVNO) model. Wireless providers under MVNOs don’t own the infrastructure they use to provide services. Little detail is provided but the move is expected to improve wireless competition in a market controlled by the Big Three: Bell, Telus, and Rogers.

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TekSavvy’s new campaign reminds federal government of looming deadline to lower internet prices

TekSavvy is reminding Canadians the federal government has until May 27th to lower their internet bills.

The internet service provider’s (ISP) ‘Pay Less to Connect‘ campaign features a doomsday-like timer counting down the minutes the government has left to speak on its petition to overrule an “arbitrary rate decision” by the Canadian Radio-television and Telecommunications Commission (CRTC).

“The federal cabinet can lower your internet bills. They decide by May 27, 2022,” the campaign’s home page says in big, bold letters.

An image of Bell CEO Mirko Bibic and Chairman Ian Scott is featured underneath. The image was captured after the CRTC released a decision saying larger telecom companies had to lower the wholesale internet rates charged to smaller competitors. The two met in an Ottawa pub in December 2019, the week after Bell filed an appeal to undo the ruling. The CRTC ultimately reversed its decision in May 2021.

The image is featured on the campaign website. Image credit: TekSavvy/screenshot

The May 27th, 2022 deadline originated from a petition TekSavvy filed on May 28th, 2021, asking the government to overrule the CRTC’s reversal.

TekSavvy wants Scott fired, or at the very least, wants him to recuse himself from decisions involving wholesale and facilities-based competition because he has a “clear bias.” In its petition, TekSavvy references Scott’s speech at a Canadian Club Toronto event in May 2021, where Scott said he has “a personal preference or a stronger belief in reliance on facilities-based competition” than wholesale-based competition, linking it to personal experiences in the private sector.

Since the filing, TekSavvy has further revealed Scott met with representatives from telecom companies while a file on internet rates was open, including 11 with representatives from Bell, Rogers or Shaw. The now infamous 2019 meeting Scott had with Bibic is also included.

Scott defended his actions several times. His most recent comes from comments he made at the International Institute of Communications annual conference this week.

“It’s unfortunate that so much is attached to the title of the chair — I don’t make decisions for the Commission,” Scott said about the meeting. He noted 80 people advise on telecom-related issues. “The focus is a bit misplaced.”

The ISP also wants the government to reinstate the CRTC’s 2019 Rates Order and ask the Competition Commissioner to address “anti-competitive activity,” TekSavvy says leading telecom companies in Canada displayed.

Image credit: TekSavvy

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NDP wants CRTC to revisit 2019 ruling on wholesale internet rates

The New Democratic Party is joining TekSavvy, Ontario’s Big City Mayors and others in calling for the reversal of a Canadian Radio-television and Telecommunications Commission ruling that would have reduced the price of wholesale internet rates.

NDP leader Jagmeet Singh weighed in on the debate at a campaign stop in Toronto on September 14th, broadcasted by CPAC.

He announced that the party, if elected, would introduce new policies to force the CRTC to revisit its decision to not adjust the wholesale rates that large carriers — i.e. those that own most of the country’s telecom infrastructure — can charge smaller internet service providers (ISPs).

The decision in question is a controversial reversal of a major study led — funnily enough — by the CRTC itself. In August 2019, the commission found that the larger carriers were overcharging smaller ISPs by a substantial amount — contributing to higher internet prices for consumers — and ordered that the big guys would have to reduce their wholesale rates.

The findings were then challenged at every possible level by Bell, Cogeco, Eastlink, Rogers, Shaw Communications, and Vidéotron. In May 2021, the CRTC ultimately decided to back off and drop its ruling entirely, citing errors in its decision process.

“The CRTC obviously is a regulator, but we can put in place laws that indicate where we want to go with things, in terms of where our priorities are,” said Singh, referring to the NDP’s election promise to lower internet bills for Canadian consumers.

TekSavvy, an independent ISP, has made the wholesale rate decision an election issue by encouraging Canadians via online petitions and lawn signs to ask their local candidates demand the CRTC reinstate its original 2019 ruling.

Image credit: @jagmeetsingh

Source: CPAC