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Ottawa stands firm on wireless policy

Industry Minister James Moore says the government will โ€œcontinue to stay the courseโ€ despite pleas for a level playing field if Verizon enters the market

The Harper government has made it clear it wonโ€™t change any wireless policy despire pressure from the big three incumbent carriers.

After meeting with all carriers Industry Minister James Moore posted a statement on the Web that the government is unmoved by claims that if Verizon Communications is able to buy a startup here competitors will be put at a great disadvantage.

โ€œSince 2008, our Government has introduced new policies to increase competition in our telecommunications industry,โ€ the statement said.ย  โ€œThe result has been greater choices at lower prices for Canadians.ย  In fact, our actions have driven down the average cost of wireless services by nearly 20 per cent.

โ€œOur governmentโ€™s view is that Canadian families work hard for their money, and they want their government to make decisions that will help them keep more of it.ย  Protecting consumers and increasing competition in the wireless market are priorities for Canadians and our Conservative Government.

โ€œOur policy has been clear and remains unchanged: greater competition and liberalized investment has meant more choices at lower prices for Canadian families.

โ€œOur governmentโ€™s telecommunications policy was not created overnight.ย  It is the result of a vigorous consultation that started in 2008 and continues today. All players โ€“ industry, consumer groups and everyday Canadians โ€“ contributed to this policy.

โ€œWe are committed to ensuring the best possible outcomes for Canadian consumers.ย  We want all regions of Canada to benefit from competitive market forces, which is why more progress must be made.ย  We will continue to stay the course by ensuring Canadians benefit from a competitive telecommunications industry.โ€

The statement was posted on Mooreโ€™s personal web site, jamesmoore.org, ย and not on the Industry Canada site subscribed to by most in the industry.

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This could be seen as a green light to Verizon, which has said it is in discussions here, although only characterized as โ€œan exploratory exercise.โ€ Butย Fran Shammo, the companyโ€™s chief financial officer, also told financial analysts on July 18 that โ€œsome of the cautions here are the regulatory environment, a foreign investor coming into the Canadian market and what does that mean?โ€ย  Mooreโ€™s statement could have cleared away any questions Verizon has about rules changing after it has made an acquisition.
Ken Engelhart, Rogers Communicationsโ€™ senior vice-president of legal affairs, agreed in an interview this morningย the government didnโ€™t allow itself any wiggle room in Mooreโ€™s statement. Still, he said is company will โ€œcontinue to make the point that it makes no sense.โ€

In an interview this morning Thornhill, Ont.-based telecom consultant Mark Goldberg said he isnโ€™t sure the government has closed the door on any policy changes, including altering the rules of the upcoming 700 MHz spectrum auction. Incumbent carriers Bell Canada, Rogers Communications and Telus Corp. say those rules in particular would give a Verizon-sized competitor unfair advantage.

Officially, Industry Canada says that carriers have to file applications to participate in the auction by Sept. 27. But Goldberg notes that the most recent application form is undated; instead they say applicants should watch the Industry Canada Web site for the final date. He agreed that could be interpreted as meaning the situation is still in flux.

Goldberg also said the government should step back and look at the impact of a number of decisions that have recently been made by Industry Canada and the Canadian Radio-television and Telecommunications Commission (CRTC), who share jurisdiction over telecommunications.

Industry Canada has issued rules over spectrum auctions and, in June, the transfer of spectrum licences. The CRTC earlier this year issued new rules over cellphone contracts. โ€œItโ€™s time for a time-out,โ€ Goldberg said.

Iain Grant, managing director of the Montreal-based SeaBoard Group, a telecommunications consultancy, said Mooreโ€™s decision not to change any policies wasnโ€™t unexpected โ€” the Harper government decided in 2007 it wanted more competition in the cellular business, he pointed out.

But he also said the recent headlines sparked by comments from Bell, Rogers and Telus about Verizonโ€™s possible entry in the market hereย were a bit much considering the U.S. carrier has only given โ€œa nod and a winkโ€ about possibly buying a Canadian carrier.

Grant also wondered why Telus [Improving economic competitiveness and vitality: A smarter approach to economic development Sponsor: IBM Canada Ltd
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