Page 108 - SAMENA Trends - January-February 2023

REGULATORY & POLICY UPDATES SAMENA TRENDS

CRTC Gets New Policy Direction to Prioritize Telecom Competition,

Affordability

The Ministry of Innovation, Science and Economic Development in January that the current wholesale wireline model isn’t working.
outlined those priorities in a new policy direction to the CRTC. The The big telecoms criticized the draft policy direction when it
document tells the CRTC what to consider when issuing decisions was released in the spring. In written comments, Bell told the
and making policy involving issues such as wireless and wireline government the document “provides directions that are so specific
internet services. The government told the CRTC to consider how its and prescriptive that they lie beyond the powers” the government
decisions encourage “all forms of competition and investment” and has under the Telecom Act. Officials told reporters in a background
how they “foster affordability and lower prices,” as well as how they briefing the government “flat out” disagreed with those arguments
“enhance and protect the rights of consumers in their relationships from the big telecom companies. Consumer advocates took issue
with” telecom companies. Among other key objectives, the CRTC with the draft policy direction from the other side, arguing it was
must look at ensuring the availability of “affordable access to high- too permissive. The Public Interest Advocacy Centre called it a
quality, reliable and resilient telecommunications services” in all “largely toothless instrument,” and said it should be rewritten “to
regions of Canada, and reducing barriers to market entry for new be directive, not suggestive.” Appearing at the House of Commons
and smaller telecom companies. The policy direction from the industry committee Monday afternoon, Innovation Minister
Department of Innovation, Science and Economic Development François-Philippe Champagne said the policy direction is “the first
is focused on telecom-related issues. The CRTC will receive a one in many, many years, which puts competition and price at the
separate policy direction from Heritage on how to implement the center of that directive.” He said “we want to see better prices,
Liberal government’s controversial online streaming legislation, Bill more competition, and we want to see innovation in the sector.”
C-11, at a later date. The previous version of the policy direction Champagne was also questioned about the $26-billion Rogers-
told the CRTC to “rely on market forces to the maximum extent Shaw deal, which would see two of Canada’s five biggest telecom
feasible.” That has been removed now that the new direction is in companies merge while spinning off Freedom Mobile to Quebecor.
place, officials confirmed in a technical briefing. The final version Freedom Mobile has been credited with driving down prices as
of the direction released Monday is largely similar to a draft version the fourth competitor in Ontario, Alberta and British Columbia.
released in the spring, which was supported by small telecoms Champagne has final approval over the deal, but he said Monday
who depend on wholesale access to the networks of the largest he’s not in a hurry to make the decision about whether the merger
incumbent telecom companies. Five of Canada’s largest telecom will go ahead or not, even as the companies have extended a self-
companies earned 87 per cent of revenues in 2020. The CRTC has imposed extended deadline to Feb. 17. He said he’s not bound “by
in recent years been under criticism from consumer advocates for any artificial deadline. I’m the regulator. I will make my decision
its handling of the wholesale internet regime, who blame the CRTC whenever I come to the conclusion that we have looked at every
for a wave of acquisitions in the sector that have seen independent aspect… I want to be very clear with Canadians there is no deadline.”
ISPs bought by big telecoms. The regulator’s new chairperson,
Vicky Eatrides, told National Post shortly after starting in the job

Bouygues Telecom Ordered to Pay EUR308m in Damages to Free

Bouygues Telecom has been ordered by the Paris Commercial
Court to pay rival Free Mobile EUR308 million (USD328 million)
in damages stemming from Bouygues’ business model. Back in
2014, Free Mobile opened legal proceedings against its main rivals
Orange and Bouygues Telecom over the pair’s handset subsidy
offerings, which it claimed bind customers into a long-term
commitment with a single operator. It initially sought damages
worth EUR1.5 billion from the two companies. The ruling states
that there must be ‘immediate execution of the judgement’, which
Bouygues Telecom believes is incorrect given the proceedings
were initiated before 1 January 2020. Bouygues Telecom says that
it ‘disputes this ruling in the strongest possible terms and considers
that its bundled offers are legal’, adding that ‘the company acted
in strict compliance with the law.’ The company will appeal the
decision at the Paris Court of Appeal.

108 JANUARY-FEBRUARY 2023