Evidence of meeting #42 for Industry, Science and Technology in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was market.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

  • Jean Brazeau  Vice-President, Telecommunications, Shaw Communications Inc.
  • Yves Mayrand  Vice-President, Corporate Affairs, COGECO Inc.
  • Kenneth Engelhart  Vice-President, Regulatory, Rogers Communications Inc.
  • Luc Lavoie  Executive Vice-President , Corporate Affairs, Quebecor Inc., Vidéotron Ltée
  • Ted Chislett  President and Chief Operating Officer, Primus Telecommunications Canada Inc.
  • Chris Peirce  Chief Regulatory Officer, MTS Allstream Inc.
  • Joe Parent  Vice-President, Marketing and Business Development, Vonage Canada Corp.

5:15 p.m.

Liberal

Scott Brison Kings—Hants, NS

In fact, with the blackout on winback for a period, as he levels the playing field, and as he restores it to a common business practice approach in some ways, giving a capacity for a competitor to make that sort of offer—

5:15 p.m.

President and Chief Operating Officer, Primus Telecommunications Canada Inc.

Ted Chislett

Absolutely. The example I think I used the last time I was here was that if Air Canada knew who had a ticket on WestJet and called them and offered a special rate to cancel the reservation and fly on Air Canada, we'd say, hey, that's anti-competitive. That's what winbacks are. Because of the nature of the network, you know when they leave and who they are and you can target them individually.

5:15 p.m.

Liberal

Scott Brison Kings—Hants, NS

Go ahead.

5:15 p.m.

Vice-President, Marketing and Business Development, Vonage Canada Corp.

Joe Parent

I was going to say that the issue of winback, from my perspective, is not so much reverting back to new business practices but the fact that the objective of the policy is to deliver the benefits of competition to the wider audience. Winback delivers cost savings to a very select group of high-risk customers without running the risk of delivering all the benefits of competition to the market at large. We feel that is the issue with winback, that it will not deliver the benefits of competition as espoused in the policy direction.

5:15 p.m.

President and Chief Operating Officer, Primus Telecommunications Canada Inc.

Ted Chislett

You end up with two different classes of customers: those who have received special offers and left, and those who don't have those offers available to them. And that's not fair.

5:15 p.m.

Liberal

Scott Brison Kings—Hants, NS

If they take a more aggressive pricing strategy in more competitive markets, in some of the larger markets, is there the potential, from a profit perspective, for the incumbents of large telcos to actually raise prices in some of the less competitive markets? Is there that potential in some of the rural and smaller-town communities?

5:15 p.m.

Conservative

The Chair James Rajotte

Just briefly, Mr. Peirce, we're running out of time.

5:15 p.m.

Chief Regulatory Officer, MTS Allstream Inc.

Chris Peirce

You already heard a sort of analog to that, on Monday, with Bell's rate increases. Bell has applied to increase rates by 80¢ a month for all its subscribers and is removing its service connection fee to those who are moving. It says it's doing that to meet competition. It describes that as revenue neutral. It's not lowering prices, it's raising prices across the gamut to deal with those instances where it feels it needs competitive advantage.

5:15 p.m.

Conservative

The Chair James Rajotte

Thank you.

We'll go to Mr. Arthur, for five minutes.

February 7th, 2007 / 5:15 p.m.

Independent

André Arthur Portneuf—Jacques-Cartier, QC

Thank you.

Let's see—

5:15 p.m.

Bloc

Paul Crête Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC

On a point of order, Mr. Chairman.

5:15 p.m.

Conservative

The Chair James Rajotte

Mr. Crête.

5:15 p.m.

Bloc

Paul Crête Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC

I agree to letting Mr. Arthur speak.

5:15 p.m.

Conservative

The Chair James Rajotte

Thank you, Monsieur Crête. It's very kind of you to allow Mr. Arthur to speak, but he has every right to speak, as a member of this committee.

Monsieur Arthur.

5:15 p.m.

Bloc

Paul Crête Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC

He is entitled to speak, but I am giving my consent so that he can speak during this round.