Evidence of meeting #20 for Industry, Science and Technology in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was trademark.
A recording is available from Parliament.
Senior Director, Industry Framework Policy, Department of Industry
I would point back to the measure that we pointed to earlier in terms of the 10 times factor. This will have a significant impact on wholesale roaming rates, and that will support competition.
Liberal
Judy Sgro Liberal York West, ON
Again, what kind of mechanisms will be in place to make sure this happens and any savings are actually passed on to the consumer?
Senior Director, Industry Framework Policy, Department of Industry
The measure relates to wholesale roaming rates. It doesn't relate to retail roaming rates. As was said in some of the earlier comments, the factor of wholesale roaming rates has been quoted by new entrants as being a significant factor in their ability to provide Canadians with competitive services. Obviously prices and services in the market are a function of that competition.
Liberal
Judy Sgro Liberal York West, ON
The wholesale rates also currently have a big impact on our smaller providers. I would imagine it would be quite a significant impediment for many of them that are currently in the market. They still have to pay an awful lot more because of the wholesale rates.
Senior Director, Industry Framework Policy, Department of Industry
That's what the legislation does address. The legislation would cap those wholesale roaming rates.
So in terms of—
Conservative
The Chair Conservative David Sweet
Thank you, Mr. Johnstone. I'm sorry, but you'll have to go with that much of an answer.
Mr. Van Kesteren, for five minutes.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Thank you for coming here this afternoon.
I have a quick question. Before this legislation unfolds, what will happen to the existing contracts?
Senior Director, Industry Framework Policy, Department of Industry
The legislation imposes a cap. It says in the legislation that this clause would come into force on royal assent. As of that date, that would be the amount that would be the cap under law.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Would the change happen once the act became law?
Senior Director, Industry Framework Policy, Department of Industry
Once it receives royal asset, that cap would be in place.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Okay, thanks.
I want to talk about the review by the CRTC. What triggered the whole process of the review by the CRTC?
Senior Director, Industry Framework Policy, Department of Industry
What triggered this, or the CRTC's review?
Director General, Telecommunications Policy Branch, Department of Industry
The CRTC often do fact-findings to establish the evidence base. In mid-2013 they did a fact-finding on the issue. On the basis of that, they decided to go ahead with a proceeding. Their first proceeding is on unjust discrimination, undue preference, and their second proceeding is a review of wholesale mobile wireless services.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
The review has been going on since 2013. Is that correct?
Director General, Telecommunications Policy Branch, Department of Industry
They started with a fact-finding, and then on December 12, 2013, they launched their process, which is called CRTC 2013-685. That is their process on unjust discrimination, undue preference.
Then in February of this year they started the second process, which is 2014-76, the review of wholesale mobile services.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Could you clarify those issues again? What are the things that the fact-finding will focus on? Just give those to me. I think you gave me three.
Director General, Telecommunications Policy Branch, Department of Industry
The first one is a fact-finding.
The second is a procedure that looks at whether there is unjust discrimination and undue preference. It's looking at a specific part of the Telecommunications Act, section 27.
Then they're going to have a broad review, a review in general, of wholesale mobile wireless services. The second review is a broader review.
Conservative
Director General, Telecommunications Policy Branch, Department of Industry
It was launched in February 2014. The date for submissions is May 15. There has been a notice of hearing established of September 29, 2014.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Okay.
Will this review complement what's happening in the act at all? Are there other ramifications?
Senior Director, Industry Framework Policy, Department of Industry
The act is a first step. Again, in terms of what the government has stated, the government announced in December 2013 and the budget plan indicated that the measure in the budget legislation will be in place until the CRTC makes its decision on roaming rates. It completely envisions that the CRTC is looking into the matter and will make a decision.
Conservative
The Chair Conservative David Sweet
You're welcome, Mr. Van Kesteren.
Ms. Quach, you have the floor. You have five minutes.
Anne Minh-Thu Quach NDP Beauharnois—Salaberry, QC
Thank you, Mr. Chair.
I'd like to thank the witnesses for being here today.
Like my colleague, Peggy Nash, I feel that this process isn't overly legitimate. Given that Bill C-31 is an omnibus bill, any of the amendments we propose won't even be voted on in committee because the Standing Committee on Finance will pass the entire bill. There's a real lack of transparency and democracy there.
That said, I do have some questions for you.
You and my colleague discussed the fact that these changes will allow the CRTC to impose monetary penalties on companies that don't adhere to wholesale roaming rates. Which provisions would allow the CRTC to impose such penalties? Are there currently any measures that are imposed on companies that break the rules?