Telecom Notice of Consultation CRTC 2019-406, broadband barriers in rural areas
The following is a summarization of the recommendations and conclusions contained throughout my intervention regarding eliminating the potential barriers to the deployment of broadband-capable networks in underserved areas in Canada for your consideration.
It is recommended that…
1.1 Internet be declared an essential service
Build on Telecom Regulatory Policy CRTC 2016-496[i] that redefined “basic service” as “broadband services,” by declaring Internet access a human right and an essential service on the basis that Internet access is a determinant of one’s equal ability to participate in and benefit from our economy and society. The basis for this is that equitable Internet access is intrinsic to rural and remote and lower-income urban Canadians’ Charter Rights to “equality before and under law and equal protection and benefit of law” and “and “pursue the gaining of a livelihood.” [ii] As well, Internet access has been determined a Human Right by the UN, “the promotion, protection and enjoyment of human rights on the Internet,” to be fundamental to, “all Rights under Promotion and protection of all human rights, civil, political, economic, social and cultural rights, including the right to development.”[iii] The Broadcasting and Telecommunications Legislative Review (BTLR) Panel, in their January 2020 Report said, “All Canadians deserve to live a connected life: to connect with ideas, opinions, content, news and information, people, cultures, services and economic opportunities locally, nationally and globally.”[iv] In addition, the Panel stated, “Access to broadband Internet is a necessity for full participation in the digital society and economy. In a society so intensely marked by the omnipresence of instant communication, the effective ability of everyone to truly participate in social and economic life and benefit from the opportunities inherent in the digital society and economy is dependent on the ability to access broadband connectivity. Connectivity is now one of the conditions for the effective exercise of expressive freedoms. [v] It has been widely reported that novel Corona 19 virus pandemic has shown in stark relief just how essential Internet service is and how wide is the growing digital divide for low income[vi] and rural[vii] Canadians. Parents who have been taking their kids to Tim Horton’s for years, so they can do their schoolwork, know this all too well.[viii] “In the face of COVID-19, the way Canadians work is changing rapidly. Working from home is the new normal and it is rapidly spiking the decline of brick-and-mortar retail, education, and commercial real estate, amongst other industries. Broadband infrastructure is essential for working from home, telehealth, education, public safety, and communications…during these unprecedented times, the government needs to immediately step in to ensure broadband infrastructure is available to all Canadians.,” said Michelle Rempel Garner, Shadow Minister for Industry and Economic Development.[ix] For details, rationale and authoritative sources, see Section 2, “Internet is an essential service,” below.
1.2 CRTC mandate TSPs to provide broadband infrastructure data
TSPs be mandated to provide accurate and complete geospatial and tabular data regarding their broadband infrastructure coverage and the operating performance and prices of their broadband services. The CRTC could anonymize some of this data to protect the security of TSPs networks but this data would be made available so legislators, policy makers, funding program staff may accurately size the gaps and develop regulations, policies, programs and funding to close of these gaps and so the public may be assured of transparency. As well, future programs must include validating TSP data by surveying residents and businesses and consulting with municipalities to ground truth the information. Maps and tables of anonymized versions of the data, to protect TSP security concerns, should be made public, so citizens may understand how their broadband Internet needs are being met and how their taxpayer and ratepayer subsidies are being invested. This would also provide greater transparency to the telecom industry and the CRTC, giving consumers and municipalities the ability to hold the regime to account, leading to higher confidence in the CRTC and TSPs from citizens, the media, municipalities and federal and provincial legislators. Importantly, this would enable accurate, surgically targeted taxpayer and ratepayer funding to close gaps that actually exist, thereby more efficiently spending those scarce dollars. For details, rationale and authoritative sources, see Section 13, “Sizing the broadband gaps and costs,” below.
1.3 CRTC mandate universal FTTP and LTE by 2030
The CRTC mandate and coordinate all wireline facilities-based providers to deliver universal Fibre-to-the-Premises (FTTP) and mobile facilities-based providers to deliver Long-Term Evolution (LTE) connectivity by 2030, including: Incumbent Local Exchange Carriers (ILECs), Small Incumbent Local Exchange Carriers (SILECs), cable companies, non-dominant carriers and other facilities-based Telecom Service Providers (TSPs). For details, rationale and authoritative sources, see Section 8, “We don’t need to reinvent the wheel,” below.
1.4 CRTC replace 50/10 universal service objective with 1/1 Gbps universal service mandate by 2030
The CRTC drop the 50/10 Mbps universal service objective by 2030 as it will systemically entrench unequal access to the Internet for rural and remote communities for decades to come on the basis that many higher income urban neighbourhoods have 1/1 Gbps access today, scalable to 40 Gbps and 100 Gbps in the next few years . Replace the 50/10 Mbps objective with a 1/1 Gbps universal service mandate by 2030 on the basis that this will drive FTTP investment of TSPs in geographic and demographic areas where they would otherwise not invest . CRTC to provide ongoing monitoring and periodic regular reporting of deployments against the universal service mandate, taking into account changes in technology and market conditions, and increase the bandwidth target of the universal service mandate as needed. In addition to mandating a bandwidth objective that the CRTC must also mandate targets for scalability, availability, symmetry, differentiation, latency, jitter and mean-time-to-restore, on the basis that useful connectivity is about more than bandwidth (speed x capacity). As part of this broader service mandate Service Level Agreements (SLAs) will be mandated for all subscribers committing retail TSPs to deliver on advertised performance and providing subscribers remedies for non-performance. For details, rationale and authoritative sources, see Section 3, “We’re aiming at the wrong the target,” below.
1.5 CRTC mandate a universal “dig-once” policy
The CRTC, coordinating with federal, provincial and municipal governments, mandate a dig-once policy which includes a set of standards for the construction of duct infrastructure necessary for the installation of fibre optic cable and the requirement to install the conduit infrastructure based on the dig-once standards. The conduit may be accessed by municipalities, land developers, telecom service providers and other entities to construct FTTP connectivity. The policy would apply for all new roads construction projects, or where existing roads are being remediated and other municipal rights-of-way as required. The objectives are to make it easier, faster, and less expensive to deploy fibre optic connectivity throughout the nation. Combined with a universal service mandate and taxpayer and ratepayer subsidies, it is expected that this dig-once strategy will yield the benefits of fibre optic connectivity to all rural and low-income residents and rural small businesses sooner than it would otherwise occur through the current facilities-based competition regime. For details, rationale and authoritative sources, see Section 8, “We don’t need to reinvent the wheel,” below.
1.6 Federal government and provinces commit to funding universal FTTP and LTE
Based on the ISED estimate of $50 billion or $5 billion per year to achieve FTTP ubiquity over 10-years, the CRTC and Infrastructure Canada commit to providing $16.67 billion in taxpayer and ratepayer subsidies to TSPs over the next 10-years to 2030 matched by $16.67 billion from provinces, and $16.67 billion from TSPs to achieve ubiquitous FTTP; including fibre to the tower to enable ubiquitous LTE. By including a national dig-once policy mandate these costs could be significantly reduced and absorbed in road construction and renewal projects.
By ubiquitous it means, to every resident, farm, and business, and every municipal, provincial and government site and asset. This is required in order to provide equitable access to the digital economy and society, as well as enabling smart transportation, smart utilities, smart homes and buildings and smart government services to put Canada at the leading edge of the digital economy versus our Organization for Economic Cooperation and Development (OECD) peers, whom Canada has been falling behind. For details, rationale and authoritative sources, see Section 14, “How we will we pay for universal FTTP,” below.
1.7 CRTC strictly regulate ILEC wholesale access end-to-end
The CRTC strictly regulate wholesale access to facilities-based providers on an end-to-end basis to ensure anti-competitive price and non-price behaviours are stopped and when they emerge, are swiftly halted and offenders penalized. Particular attention must be paid to ILECs due to their market dominance as the only ubiquitous infrastructure owners and history of anti-competitive behaviours. For details, rationale and authoritative sources, see Section 8, “We don’t need to reinvent the wheel,” below and Section 10, “Regulatory oversight of TSPs.”
1.8 Establish a Telecommunications Competition Tribunal
The federal government establish a Telecommunications Competition Tribunal (TCT), with representation from the CRTC and the Competition Bureau working jointly, as recommended by the Telecommunications Policy Review Panel, 2006. The TCT would have the power to investigate, intervene, enforce and punish anti-competitive behaviours in a timely and consequential manner. The TCT operating, “as a telecommunications sector-specific competition authority, assuming responsibility to apply industry-specific competition law based on the civil provisions of the Competition Act.” [x] For details, rationale and authoritative sources, see Section 10, “Regulatory oversight of TSPs,” below.
1.9 CRTC mandate Carrier-Neutral, Open-Access for wholesale access
Integral to the wholesale access regime must be mandated carrier-neutral, open-access to the wholesale networks. Carrier-neutral meaning the wholesale provider will not favour one retail provider over another and open-access meaning that the prices, specifications and agreements for wholesale access are open and transparent and there are significant consequences and penalties to the wholesaler for anti-competitive price and non-price behaviours and timely consequential remedies to the wronged third-party providers. For details, rationale and authoritative sources, see Section 9, “The Carrier-Neutral, Open-Access Model,” below.
1.10 CRTC structurally separate wholesale and retail access providers
The CRTC restructure facilities-based telecom services such that there is “structural” separation between wholesale and retail divisions of vertically integrated telecom companies. By structural it means legal separation that results in separate ownership of wholesale facilities and service from retail services. Structural separation is recommended on the basis that this will eliminate the inherent conflict of interest that afflicts the “operational” separation (Chinese Wall) concept of current facilities-based competition regime which has driven anti-competitive behaviour of incumbents since deregulation in 1993. Canada’s telecommunications industry landscape is not competitive enough to incentivize the market to increase speed and access [in rural areas]. This is evidenced by the fact that investments in rural broadband by successive governments and incumbent providers over nearly two decades have not solved the problem. Investment is needed, but first the system needs to change,” as recently stated by Michelle Rempel Garner, Shadow Minister for Industry and Economic Development.[xi] For details, rationale and authoritative sources, see Section 9, “The Carrier-Neutral, Open-Access Model,” below.
1.11 CRTC adopt a set of Guiding Principles
Bandwidth targets become obsolete the moment they are published. In many jurisdictions, the 50/10 Mbps target is now the ‘new dial-up.’ Rather than picking bandwidth targets as the only attribute driving broadband policy, the Commission should adopt a set of universal, industry standard measures of the effectiveness of an Internet connection that are technology agnostic as a set of “Guiding Principles”. If bandwidth targets are set, they should be reviewed on a regular, periodic basis to maintain relevancy. For details, rationale and authoritative sources, see Section 12, “Guiding Principles,” below.
[i] https://crtc.gc.ca/eng/archive/2016/2016-496.htm
[ii] https://laws-lois.justice.gc.ca/eng/const/page-15.html
[iii] United Nations, General Assembly, Human Rights Council, Twentieth Session, A/HRC/20/L.13, June 29, 2012.
[iv] https://www.ic.gc.ca/eic/site/110.nsf/vwapj/BTLR_Eng-V3.pdf/$file/BTLR_Eng-V3.pdf, page 10.
[v] https://www.ic.gc.ca/eic/site/110.nsf/vwapj/BTLR_Eng-V3.pdf/$file/BTLR_Eng-V3.pdf, page 72.
[vi] https://www.theglobeandmail.com/canada/article-how-the-pandemic-is-highlighting-canadas-class-divide/
[vii] https://www.cbc.ca/news/canada/calgary/rural-internet-alberta-1.5522845
[viii] https://www.cbc.ca/radio/spark/working-from-home-data-surge-a-balancing-act-for-isps-tech-expert-1.5511650/internet-is-the-only-lifeline-they-have-canada-needs-to-confront-digital-divide-amid-covid-19-crisis-1.5513206
[ix] https://mprempel.ca/news/f/connect-canada---call-to-action-on-rural-internet-access
[x] Telecommunications Policy Review Panel Final Report, 2006, page 6.
[xi] https://mprempel.ca/news/f/connect-canada---call-to-action-on-rural-internet-access