[Facil] Telco deregulation no reason for celebration in rural and remote areas.

[Stéphane Couture]

Alternative Telecommunications Policy Forum
News Release
Dec. 18, 2006


Telco deregulation no reason for celebration in rural and remote areas.

The recent decision by Industry Minister Bernier to deregulate telephone 
service in areas where consumers have three choices of service has 
raised concerns among the 40% of Canadians who will not benefit from 
this ruling.

"There will be less reason for any further development in the rural and 
remote parts of the country.  The big players will need all their 
resources to create and maintain their share of the traditional market." 
said Brian Beaton, Coordinator of K-Net Services in Sioux Lookout, 
Ontario. "It is an old business model that mostly supports those who 
conform to preset  requirements."  It is not clear, for example, how 
those communities who seek ownership and control of the local 
communications infrastructure would benefit.

"This is not really competition," adds Andrew Clement, Professor of 
Information Studies, University of Toronto and principal investigator of 
the Canadian Research Alliance for Community Innovation and Networking 
(CRACIN). ""Oligopolies of our large telephone and cable companies will 
mostly be engaging in creative poaching. It is not necessarily in their 
interest to undercut each other in price and thereby destroy the markets 
they own together."

But the decision comes as no surprise to organizers of an Alternative 
Telecommunications Policy Forum held in Ottawa in October, 2006.  
Participants, who were considering some of the recommendations of the 
Telecommunications Policy Review Panel, felt that far too much faith had 
been placed in market forces.

Serious concerns were raised about the proposed changes to section 7 of 
the current Telecommunications Act which would eliminate various 
important policy goals such as the need to provide "reliable and 
affordable telecommunications services of high quality accessible to 
Canadians in both urban and rural areas in all regions of Canada".  The 
proposed new version requires the only promotion of affordable access, 
not its delivery.  "We appear to be abandoning our historic compact with 
our rural neighbours that has made high quality services in all areas an 
obligation.  The market will not look after these areas and there is no 
other plan on the table" says Marita Moll, a CRACIN co-investigator and 
one of the Forum organizers.

In this rapidly changing environment, the recent CRTC public notice 
initiating a proceeding to redefine 'essential service' only adds to the 
concern.  Within the context of facilitating competition and 
interoperability, the CRTC is asking "what definition of essential 
service would be appropriate and contribute best to the achievement of 
[the] policy objectives [of the Telecommunications Act.]"  With those 
policy objectives, i.e. section 7 of the Act, apparently hanging in the 
balance and few voices other than the major competitors contributing to 
the process, the future for communications in the public interest is 
murky at best.

More information about the Forum can be found at 
<http://www.cracin.ca/>www.cracin.ca

For further information please contact:

Diane Dechief,
CRACIN Administrator
Tel: 416-978-4662
E-mail: <mailto:cracin at fis.utoronto.ca>cracin at fis.utoronto.ca

-- 
Stéphane Couture :: http://stephcouture.info