Evidence of meeting #55 for Industry, Science and Technology in the 40th Parliament, 3rd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was bell.
A recording is available from Parliament.
February 8th, 2011 / 5:20 p.m.
President, Board of Directors, Oricom Internet
Yes, it's the same thing.
Conservative
The Chair Conservative David Sweet
Thank you very much, gentlemen. That concludes our time there.
Now we'll go on to Monsieur Bouchard, pour cinq minutes.
Bloc
Robert Bouchard Bloc Chicoutimi—Le Fjord, QC
Thank you, Mr. Chair. Good afternoon, ladies and gentlemen, and thank you for being with us this afternoon.
My first question is for Mr. Bergeron. Mr. Andersen might also be able to add to the answer.
Mr. Bergeron, in your presentation, you said the CRTC has to change its approach to regulation. My colleague asked you a question about the order in council governing communications. Do you think that order is in part responsible for the recent CRTC decision?
President, Board of Directors, Oricom Internet
Unfortunately, I'm not an expert in orders and legislation. I can only tell you the effect I see. The rates charged at retail by Bell Canada and by Vidéotron in Quebec have to be the same as what I have to charge. In my opinion, I don't think a government policy should impose that on the market and a competitor should have to follow what the dominant company does.
President, Board of Directors, Oricom Internet
Has the market changed? I really can't identify a reason, I'm not an expert in regulatory matters. But I can tell you that the effect is that we have to follow what the dominant company charges its individual customers.
President, Board of Directors, Oricom Internet
It's an unfortunate outcome, in my opinion, but I don't know what caused it.
Bloc
Robert Bouchard Bloc Chicoutimi—Le Fjord, QC
You aren't able to say that the recent CRTC decision is a result of the government deregulation order?
President, Board of Directors, Oricom Internet
I can tell you at least that I do not agree with the government order being interpreted that way. If I had interpreted it, I would not have done it that way.
President, egateNETWORKS Inc.
I'm a small-business owner with a regulatory staff of zero, so I have to do this on the side myself. I can't claim to be an expert on the policy direction I think you're referring to.
I'm not sure if it's so much the direction as the interpretation. If I understand it correctly, it's in market forces where it makes sense. We first have to ensure there's a healthy market for competitors that are on solid footing, and that we have access to cost-based facilities. Until you have that, it could be premature to allow market forces in.
I can't speak for why the CRTC went that way, but to me it seems there could be an interpretation problem.
Bloc
Robert Bouchard Bloc Chicoutimi—Le Fjord, QC
I'm asking both of you again, Mr. Bergeron and Mr. Andersen. I noted a comment by Mr. Andersen who said the incumbents wanted to dictate a business model.
Do you think the CRTC has given in to the incumbents' demands in making telecommunications rules?
Mr. Bergeron, what do you have to say?
President, Board of Directors, Oricom Internet
I tend to agree with you on that.
President, Board of Directors, Oricom Internet
Bell asked, for example, to be able to impose usage-based rates on the market. It agreed to that, although I can see no rational reason for doing it. So it would seem that Bell's arguments are better than what I can understand.
Bloc
President, Board of Directors, Oricom Internet
I want to respond to what Mr. Bibic told me, a few months ago, at a CRTC hearing. He told me, directly, that his company had invested $9 billion, and so it got a say.
That is what Mr. Bibic, from Bell, told me.
Bloc
President, egateNETWORKS Inc.
I believe that when the chairman was here before you last week, he said that their acceptance of the caps was based on the proposal from Bell, because it matched the retail. Obviously I have a problem with that. I think, as I said in my statement, that a wholesaler should not be charged.... What's appropriate for charging a wholesaler is not necessarily the same as what an end user or a retail pricer would be charged.
Conservative
Bloc
Robert Bouchard Bloc Chicoutimi—Le Fjord, QC
Mr. Bergeron, when you answered the first question, you said you would not have interpreted the government order that way. How would you have interpreted it?
President, Board of Directors, Oricom Internet
When I read the order I thought it was fine. After several interpretations, in some cases, the order is fine, but in other cases, it is not how I would have interpreted it. That is what I mean.
Conservative
