CRTC public hearing addresses telco competition in rural Canada

On October 26, 2010, the Canadian Radio-television and Telecommunications Commission began a public hearing to discuss the topic of access to basic telecommunication services. OpenMedia.ca's position has been put forward by the Canadian Internet Policy and Public Interest Clinic for the hearing, which ends next week.

Three measures related to the basic telecommunication services in Canada are being reviewed at the hearing. This framework consists of telephone companies’ obligation to serve, a minimum target for service in residential areas, and a regulatory regime that subsidizes companies that provide local telephone service to rural areas.

The current framework in place was developed more than ten years ago. These potentially outdated measures are under review to evaluate their propriety in today’s dramatically-evolved telecom sector and in the modern conditions of the Canadian economy.

Since the current conditions of the services in residential areas have far exceeded the basic requirements, the pressing issue remains to be local telephone competition in rural Canada. Currently, many rural and remote areas in Ontario, Quebec and British Columbia are served by small independent providers. These providers monopolize their home markets when it comes to local service.

Ever since local competition in these markets were allowed and led to open competition among the three largest markets, competing companies have been requesting to enter other territories currently served by the small independent providers.

CRTC Chairman Konrad von Finckenstein opens up this question to the public: "The panel is seeking views on whether local competition should be introduced in additional markets. If so, should we use the same policies as those that were applied to larger incumbents? Or should they be adapted to the circumstances of smaller providers?"