Right.
Evidence of meeting #46 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 rural.
A recording is available from Parliament.
Evidence of meeting #46 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 rural.
A recording is available from Parliament.
4:40 p.m.
Conservative
Bev Shipley Conservative Lambton—Kent—Middlesex, ON
Then it doesn't get deregulated. And that wasn't the impression I was left with, based on some of the comments that were made by you, that it would just fail.
4:40 p.m.
President and Chief Executive Officer, Access Communications Co-operative Limited
But isn't the third leg in the test the existence of a facilities-based provider? I mean, that happens day one. We launched telephone service in Regina two weeks ago. As of that moment, without one single customer, then we met the test. Then deregulation happens. Then the win-back restrictions are removed and the rest of it.
So the minute we launch and spend the money in Weyburn or in Estevan or in North Battleford, we satisfy the test. I can tell you that we're not going to spend the money.
4:40 p.m.
Conservative
4:40 p.m.
NDP
Brian Masse NDP Windsor West, ON
Thank you, Mr. Chair.
I'd like to pick up on that, on the test that's been offered out there. You're correct that these are some of the practical problems of just putting out the three test. Also, they have issues related to if one of the groups actually leaves the market or folds from the market or is bought out from the market.
I do want to give you an opportunity, though, to explain a little bit more about that in terms of entering into a market, what it really costs to do so. I think that's important. We haven't talked enough about the practical elements of actually launching into a market and the front-end costs.
I think we know that it's not like other businesses. You're dealing with a monopoly in the past, for years, and you're having to actually buy space on their services and then compete with them in a very unusual way.
Maybe you can articulate a little about that. When you actually move into a market, what are the full things that have to be done to make it successful?
4:40 p.m.
President and Chief Executive Officer, Access Communications Co-operative Limited
In Regina, for example, the consumers are looking to buy telephone service. They don't want to differentiate by product or by type of service. A telephone is a telephone is a telephone. But they have certain expectations: that it works in the event of a power outage, and that they're not competing with Internet traffic in terms of their regular primary-line service. That requires an investment of standby power, that requires an investment in managed networks.
In my case, we spent $3.5 million in Regina, up front, before we had one customer. Now there's customer-premise equipment and installation in the neighbourhood of $300 per customer to get them connected. So as we add customers, the marginal rate or the incremental rate is $300 per customer--and I spent $3.5 million getting into the business to start with.
4:40 p.m.
NDP
Brian Masse NDP Windsor West, ON
If the regulations stay the same, where we continue down the path that was previous to the minister's intervention, was there any intent of any further investment into the market? Was that really the intent of all your businesses? That if the rules were going to remain towards that and the CRTC was moving towards this pattern of deregulation that it has, was that the intent of operators here, to actually continue their investment?
4:40 p.m.
President and Chief Executive Officer, Access Communications Co-operative Limited
Speaking for my company, we had a 24-month plan to roll out primary-line telephone service to the vast majority of our customers in Saskatchewan. In the next 24 months, 98% of our customer base would have access to primary-line telephone service, under the preceding regime, under the rules.
4:40 p.m.
President, Bluewater TV Cable
Yes, absolutely. We were committed to this.
We're a going concern. We're going to spend the money and we want to be successful.
4:45 p.m.
President, Distributel
In our case, our model is more based on resale. We're not a cable company. We're doing it using the telephone company's infrastructure. But without the wholesale tariffs, as they're called, we just don't have an offer to the public. We don't have a way to reach them.
4:45 p.m.
NDP
Brian Masse NDP Windsor West, ON
The reason I asked that question is that one thing that's really difficult, I think, for many of us on the opposition side with regard to this is that the minister hasn't brought forth any legislation. This has been done through interpretation of CRTC decisions from his point of view. But there hasn't been legislation presented in front of us, despite a report being concluded about a year ago. The minister could have, at any point in time, presented legislation to this committee and to the House of Commons.
Would it be a more comfortable process, with a full accountability to the Parliament of Canada, to actually follow through with any type of telecommunications redrawing in Canada?
4:45 p.m.
Persona Cable
Here's the straight goods on this one: the longer it's delayed, the better, because I'll be launched in more markets and I'll have a fighting chance. That's the reality of it.
4:45 p.m.
Chief Financial Officer, Telesat Canada
That would be counter to our interests. Deregulation in Canada can't happen fast enough for us.
4:45 p.m.
NDP
Brian Masse NDP Windsor West, ON
Would you prefer that it happens under actual law, or would you prefer that the minister of the day has his or her own rules and decides upon them, and they could be something today and something different tomorrow?
4:45 p.m.
President and Chief Executive Officer, Access Communications Co-operative Limited
Anything is better than what we have now.
