Competition Bureau Canada
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Telecommunications Policy Review Panel:- Introduction

14. The Bureau is pleased to submit the following comments to the Telecommunications Policy Review Panel pursuant to the procedures outlined in the Panel’s Consultation Paper and subsequent letter to parties to the Telecommunications Policy Review.2

15. The Commissioner of Competition is responsible for the administration and enforcement of the Competition Act. The statutory purpose of the Act is to maintain and encourage competition in Canada in order to promote the efficiency and adaptability of the Canadian economy. The Act also aims to expand opportunities for Canadian participation in world markets while recognizing the role of foreign competition in Canada, to ensure that small and medium-sized enterprises have an equitable opportunity to participate in the Canadian economy and to provide consumers with competitive prices and product choices.3

16. In keeping with the Bureau’s mandate and in recognition of the difficult time constraints that the Panel faces in conducting this Review, the Bureau has focused its comments on those areas most relevant to the transition of the telecommunications market from a monopoly environment to one controlled by market forces. To this end, the Bureau has selected only those questions that are particularly germane to its own mandate under the Competition Act, and that relate to the areas in which the Bureau has substantial expertise. The Bureau intends to provide its views on the comments of other interested parties in the second round of this Review and would be pleased to provide the Panel with any additional information or participate in any subsequent proceedings or activities at its request.  

17. The Bureau agrees with the Panel’s observation that “Canada has generally been well served by the policy and regulatory framework that evolved over the last century”.4  Moreover, the Bureau agrees that this framework has allowed for the development of some of the most advanced, ubiquitous and affordable telecommunications networks and services in the world. The Bureau considers as well, that Canada is, in many respects, a world leader in telecommunications development. Canadians are, and should be, proud of our telecommunications innovation and heritage.

18. Over the past twenty years under this evolving policy and regulatory framework, the telecommunications sector has migrated from a monopoly service delivery model to a more consumer-driven market.  As the Panel noted, this migration has generally been quite successful.5

19. Indeed, since the early 1980s the Canadian Radio-television and Telecommunications Commission (CRTC) and Industry Canada have done an admirable job of opening up telecommunications markets to competition. The CRTC has forborne from aspects of regulation in voice and data long distance communications and prices continue to fall. The same applies to terminal equipment, international, broadband, and wireless communications. Industry participants have responded to these opportunities with investment in networks and services to provide choice to consumers. Consumers, in turn, are taking advantage of their alternatives.

20. However, in this climate of globalization, deregulation and rapid technological change, it is incumbent upon governments and regulators to scrutinize policies and regulation to ensure that they are forward-looking, necessary, and as narrowly drawn as possible to serve their needed purpose.  Accordingly, the Review comes at an important time in the evolution of Canadian, and global, telecommunications markets.

21. The Bureau commends the Panel for its work so far in aptly and comprehensively identifying the issues that will be critical to the development of sound policy objectives and an appropriate regulatory framework for telecommunications in Canada and is pleased to provide its views on those issues within its mandate and expertise that it considers most important to the development of competitive telecommunications markets in Canada. 

2. Telecommunications Policy Review Panel, Letter to Parties to the Telecommunications Policy Review Re: Additional information regarding the Telecommunications Policy Review, dated July 7, 2005, online: Telecommunications Policy Review Panel < http://www.telecomreview.ca/epic/site/tprp-gecrt.nsf/en/rx00024e .html > (last modified: 7 July 2005).

3. Competition Act, RSC 1985, c. C-34, as amended, sections 1.1 and 7(1).

4. Consultation Paper at p. 4.

5. Consultation Paper at p. 7.