Evidence of meeting #28 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 amendments.
A recording is available from Parliament.
Conservative
Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON
So again, enforcement is based on complaint or reported interference. Who reports this? To whom would an individual or a company report this?
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
In most cases the report would go to Industry Canada.
Conservative
Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON
Okay. If telecoms are non-compliant with paper billing, or an individual or company experiences spamming, who do they report to?
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
In that case it would be the CRTC. The CRTC is the regulator that handles the majority of regulations under the Telecommunications Act.
There are a few instances where it's the minister, things like certification of equipment; undersea submarine cable licensing is another one for the minister. The vast majority of the regulation falls under the CRTC and that's who does the enforcement.
Conservative
The Chair Conservative David Sweet
Thank you very much, Mr. Scott and Madam Gallant.
Now to Mr. McKay.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
Thank you, Chair.
Under clauses 191 and 192, do you have an estimate of how much these measures would save consumers?
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
The best estimate that I've seen is the one I referenced before and is prepared by PIAC, the Public Interest Advocacy Centre.
November 6th, 2014 / 9:10 a.m.
Liberal
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
PIAC, the Public Interest Advocacy Centre. Their estimate is that the current fees generate between $315 million and $554 million.
Liberal
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
Yes, it is a substantial amount of money.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
What in this legislation prevents Bell or Telus, or anybody else, from switching and making up some other fancy fee to make up for the two bucks they're charging for the paper bill?
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
The legislation prevents a very specific...it's narrow in the sense that it prevents a specific annoyance from occurring in areas where the rates are regulated. There still are some rates that are regulated by the CRTC. Companies would not be able to increase those rates.
In other areas rates are primarily dictated by market forces and it would be a business decision.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
So to to kill the two bucks from Bell, I may have some protection, but if I'm getting a bill from Home Depot and they're sending me an additional $2 charge, I have no protection whatsoever.
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
From Home Depot for telecommunication services?
Liberal
John McKay Liberal Scarborough—Guildwood, ON
I'm sorry, that's wrong. Yes, okay. That's not telecommunications.
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
Right. If you are receiving a bill from a telecom service provider whose rates are not regulated, they are not allowed to charge you an increased fee based on your choice or your preference of type of bill.
Yes, they are free to set their non-regulated rates according to the market.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
Can you give me an example of that? It's not clear to me.
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
Let's talk about kind of basic home phone service that we all have. You could get that service from Bell and they currently charge you, say, $30. At present you would probably pay a $2 fee if you want to receive a paper bill. Once the new legislation is in place, they would no longer be able to charge you the $2.
If Bell made a business decision that it wanted to increase its rates across the board in non-regulated areas, it could do that.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
What would be the non-regulated areas, though, on my phone bill?
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
The vast majority of retail services are not regulated, apart from some small geographic areas where, in the commission's view, there is not enough competition yet to deregulate. Primarily we are talking about smaller communities that haven't seen new companies come to the market. It's really those smaller geographical areas that would—
Liberal
John McKay Liberal Scarborough—Guildwood, ON
The smaller communities are the most vulnerable, then, to whatever telecommunications provider switches something from one side of the ledger to the other.
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
And that vulnerability is precisely the reason that those rates remain regulated: so that there is that check in place.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
My second question has to do with clauses 193 through 210 and the effect of the amendments on voter contact calling services and provisions in the Fair Elections Act.
How will this effect work?
Director, Business and Regulatory Analysis, Telecommunications Branch, Strategic Policy Sector, Department of Industry
This area makes up a large portion by volume of my section of the bill. The drafting instructions are strictly to ensure that when our portion of the bill comes into effect, it amends the paragraphs that we intended it to amend. The Fair Elections Act has some amendments that, while passed, have not yet come into force and will be modifying the numbering of the corrected bill.
This is just a very technical drafting exercise. It does not have a substantive impact on the Fair Elections Act.