Renewed Telecommunications Policy Direction to CRTC

Summary#

This is a proposed Order Issuing a Direction to the CRTC on a Renewed Approach to Telecommunications Policy published in the Canada Gazette on June 4, 2022. It would tell the CRTC what the federal government wants it to prioritize — for example, keeping required wholesale access for home Internet, boosting competition in wireless, and strengthening consumer protections. The public has 45 days to comment on the proposal.

What it does#

• Repeals the two earlier policy directions (the 2006 and 2019 orders) and replaces them with a single new direction under the Telecommunications Act.
• Tells the CRTC to keep a mandatory wholesale access framework for fixed (home) Internet services and to maintain both the current aggregated model and a new disaggregated model until competition is clearly sustainable without them.
• Directs the CRTC to speed up how it sets wholesale tariffs and to monitor and adjust the wholesale framework when needed.
• Confirms a facilities-based approach to mobile wholesale access (for MVNO-type arrangements), but asks the CRTC to review and expand or extend that approach if it does not produce enough competition, especially in remote areas.
• Asks the CRTC to improve consumer protections, including:
  • strengthening the Commission for Complaints for Telecom-television Services (CCTS) (more capacity, better governance, more public awareness);
  • tackling bad sales practices and unclear pricing;
  • making it easier to cancel, transfer or change services; and
  • improving accessibility for people with disabilities.
• Requires more public information on service performance, including testing of fixed Internet speeds and better mobile coverage reporting.
• Directs the CRTC to keep supporting universal access (including a funding mechanism) and to consider prioritizing funding for mobile services and some operating costs to improve service in underserved areas.
• Sets cross-cutting expectations for the CRTC: be evidence-based, transparent, timely, proportionate, and monitor market trends.

Who's affected#

• Consumers across Canada, especially people in rural and remote areas who may lack service choices.
• Incumbent telecom companies and cable operators (those that own networks).
• Wholesale-based Internet service providers and smaller or regional ISPs that rely on mandated access to compete.
• Mobile wireless competitors and firms that might operate as MVNOs.
• The CRTC (the regulator) and the CCTS (complaints body), which would have new or reinforced expectations to follow.
• Telecom industry members who help fund the CCTS or must run network performance tests; the government estimates any additional costs tied to these changes would be limited (under $1 million annually in total).

Why it matters#

• Keeping mandatory wholesale access aims to preserve more than just a couple of retail providers for home Internet. That can protect choice and help keep prices down for consumers.
• Stronger consumer protections and clearer price and performance information could make it easier for people to compare offers and avoid misleading sales tactics.
• Faster, more predictable CRTC decisions and clearer policy direction are intended to reduce regulatory uncertainty that can slow investments and limit new competitors from entering the market.
• A focus on rural and remote coverage means the changes target the long-standing gap in access and affordability outside urban areas.
• This is a proposed direction, not a final law. It would bind the CRTC only if and when the order is registered. Public comments during the 45-day consultation could still affect the final text.