Industry Committee on Nov. 18th, 2014

[Kurt Eby]

I can't comment on that. If it were right now and by January, I think it would be very tough. They can't update their IT systems in December.

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

So would they say, we'll forgo that $40 million in revenue every month because we can't do it until March?

[Kurt Eby]

I can't comment on how they would respond to that.

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

It's probably safe to say they'd find a way to make it work out; is that right?

[Kurt Eby]

It's possible.

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

Yes, okay.

Christianne, switching gears a little bit—I don't know how much time I have, but I imagine it's not very much—can you give us an example of where this new power involving AMPs would be used?

[Christianne Laizner]

One example would be that if you, as a holder of a mobile service, decided to switch providers and they refused to port your phone number—because you know we all like to keep our phone numbers when we change cellphones—that is something that would be subject to an AMP. There are examples at the wholesale level, at which carriers are to provide a certain quality of service to the smaller players in interconnecting them into central office facilities. Sometimes, if the timeframes for providing that service aren't adhered to, that failure could be another example. Charging for a paper bill, once this legislation comes into effect, would be an example.

[The Chair, Conservative, David Sweet]

Thank you very much.

For those who may be reading a transcript, the acronym AMP is...?

[Christianne Laizner]

It means “administrative monetary penalty”.

[The Chair, Conservative, David Sweet]

Thank you very much.

We go on to Mr. Chan for four minutes.

[Arnold Chan, Liberal, Scarborough—Agincourt, ON]

Thank you, Mr. Chair.

I want to thank all the witnesses for their presentations.

This is a quick question for Mr. Eby.

I was wondering whether, when the government was consulting with you with respect to the proposed amendment, they indicated to you why they were solely speaking to the telecom industry. Did they give you any indication that this regulation might apply more broadly?

[Kurt Eby]

No, none; we were never really directly consulted, in any event.

[Arnold Chan, Liberal, Scarborough—Agincourt, ON]

Okay, that's fair enough.

You talked briefly about seeking a transitional period to the end of March. Is there any particular evidence that you could tender to this committee with respect to concerns from your members explaining why their IT systems can't be amended before that period?

[Kurt Eby]

In particular, the answer is very quick when talking about multiple IT systems beyond wireless—this will cover telecom and Internet and obviously broadcasting as well—because they're not always integrated, as I think many people probably know when they get their bill.

[Arnold Chan, Liberal, Scarborough—Agincourt, ON]

Yes, but we're talking about dropping one line on a bill.

[Kurt Eby]

Yes, but it's a lot more complex than you'd think. What I have been told by all of them is that they cannot undergo IT system changes between, generally, December 6 and January 2 because of how busy the Christmas period is. They can't make those changes at that time, so they would basically have between now and the beginning of December, I suppose.

[Arnold Chan, Liberal, Scarborough—Agincourt, ON]

Thank you, Mr. Eby.

I want to turn to the CRTC with two quick questions.

I was wondering about the impact the CRTC would have on small TV stations, if this bill were to pass. I ask in reference to the possibility of de-bundling, should this bill proceed.

Also, a number of years ago the CRTC removed the requirement of local over-the-air TV stations to carry local news. I'm wondering whether the CRTC would contemplate revisiting this decision in light of the possibility of de-bundling, if it were to go forward.

[Christianne Laizner]

Mr. Chairman, the CRTC currently has a proceeding before it called Let's Talk TV where it's looking at a wide range of issues, including bundling, so we really can't comment on what may or may not happen in that area because the decision of the commission has not yet been rendered, even though the public hearings have concluded.

We do note that under the provisions in this Bill C-43 there is a prohibition on charging for paper bills under the Broadcasting Act, as well as under the Telecommunications Act. So there is the same provision under both acts.

[The Chair, Conservative, David Sweet]

Thank you very much, Mr. Chan.

Now to Ms. Bateman for four minutes.

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

Thank you very much, Mr. Chairman.

Thank you to all of our witnesses this morning. I want to apologize to you, Madam Laizner. We should have moved everyone over and you would have had equal footing, but I'm going to come back to you in a moment with a question. I very much appreciate your testimony and your comments about monetary penalty. I'm going to ask you for an example of that.

I first want to ask Mr. Eby a question.

You have served the industry, it's the industry companies that pay your salary, is that right?

[Kurt Eby]

They do.

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

How much are those companies making? There is a change now; they can't charge for paper bills. What is the impact on their bottom line?

[Kurt Eby]

I don't know. We don't talk about business issues.

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

What do you do? I'm curious. I am a chartered accountant and I am always looking for value for money and I'm curious about what services you provide. If you were serving the industry, you would probably have done some kind of calculation as to impact.

[Kurt Eby]

If we did, we would have to do it separately. We can't go to our members and ask them all to tell us how much they make from something, because we are not allowed to talk about what they make.