Evidence of meeting #29 for Industry, Science and Technology in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was spectrum.
A recording is available from Parliament.
4:20 p.m.
Liberal
The Chair Liberal Sherry Romanado
Rest assured, MP Badawey, there's no challenge on the field. Thank you so much.
Our next round of questions goes to MP Lemire.
You have the floor for two and a half minutes.
4:20 p.m.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
Fortunately, this isn't the case. Otherwise, we wouldn't see Mr. Badawey again.
I'll continue to address my questions to Mr. Scott from the CRTC.
As a result of the proposed acquisition of Shaw by Rogers, do you believe that the auction of spectrum licences in the 3,500 megahertz band should be delayed?
4:20 p.m.
Chairperson and Chief Executive Officer, Canadian Radio-television and Telecommunications Commission
4:20 p.m.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
That's fine, but your opinion is valuable.
In your opinion, should Shaw be withdrawn from the auction of the 3,500 megahertz band? Given its possible acquisition by Rogers, is Shaw eligible?
4:20 p.m.
Chairperson and Chief Executive Officer, Canadian Radio-television and Telecommunications Commission
Is this a question for me? Perhaps it's more suitable for Mr. Dagenais.
4:20 p.m.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
We can ask him the question, but I'm also interested in your opinion.
4:20 p.m.
Chairperson and Chief Executive Officer, Canadian Radio-television and Telecommunications Commission
I don't have an answer for you, since we aren't responsible for this issue. Spectrum policy issues fall under the purview of ISED.
4:20 p.m.
Bloc
4:20 p.m.
Senior Assistant Deputy Minister, Spectrum and Telecommunications Sector, Department of Industry
Thank you for the question.
As I told Mr. Masse earlier, the deadline for registering for the auction was yesterday. Yesterday afternoon, we published the names of the companies that applied to participate in the June auction. Shaw isn't one of them.
So, the issue is resolved. I know that this issue was pending.
4:20 p.m.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
However, I gather that Shaw would have been eligible.
April 7th, 2021 / 4:20 p.m.
Senior Assistant Deputy Minister, Spectrum and Telecommunications Sector, Department of Industry
The company didn't ask to participate.
4:20 p.m.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
Yes, but can you tell me whether it would have been eligible, should a similar situation arise later on and we want to review the precedents?
4:20 p.m.
Senior Assistant Deputy Minister, Spectrum and Telecommunications Sector, Department of Industry
I can tell you that rules define which parties, in merger cases, are eligible and which parties are considered independent. The affiliated parties can't participate independently.
4:20 p.m.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
In terms of affiliated parties, Mr. Scott, do you have an opinion on subsidiaries such as Virgin or Fido that can access their parent company's lower rates and compete with the small players? Do you have an opinion on how they affect competition in the market?
4:20 p.m.
Chairperson and Chief Executive Officer, Canadian Radio-television and Telecommunications Commission
No, again, I'm sorry.
I'm forced to respond in the same way. The issue of the brands and the MVNOs is central to our proceeding, and the decision will be out shortly.
4:20 p.m.
Liberal
The Chair Liberal Sherry Romanado
Thank you.
Our last round of questions will go to MP Masse.
You have the floor for two and a half minutes.
4:20 p.m.
NDP
Brian Masse NDP Windsor West, ON
Thank you, Madam Chair.
I'll go over to Mr. Dagenais with regard to the spectrum auction.
Was anything unique or different done with it that you can comment on, or was it basically a continuation of policy?
4:20 p.m.
Senior Assistant Deputy Minister, Spectrum and Telecommunications Sector, Department of Industry
There are a few things we've done differently.
We've gone to smaller tier sizes. Rather than auction off 17 licences, we're auctioning off 172 licences. Smaller players will have, we think, better access to smaller geographic areas when they're buying spectrum. I think this will probably end up in a diversity of players. We see it from the number of players that have applied to participate in the auction. We have a lot more than usual.
We have also put aside competitive measures. There's a set-aside for new entrants, which is a continuation of policy. It's an important policy, and I think it's something the Competition Bureau has pointed out. When there's a strong regional player, you see lower prices.
The other thing I would point to is that we have pretty aggressive deployment conditions to ensure that those who end up buying the spectrum really abide by a “use it or lose it” policy.
These are improvements that we've made over the years, and they're culminating in the auction that's coming forward in two months.
4:25 p.m.
NDP
Brian Masse NDP Windsor West, ON
What type of revenue do we expect to get with regard to this auction?
4:25 p.m.
Senior Assistant Deputy Minister, Spectrum and Telecommunications Sector, Department of Industry
I can't really say. We don't make forecasts for revenues in spectrum auctions. I mean—
4:25 p.m.
NDP
4:25 p.m.
Senior Assistant Deputy Minister, Spectrum and Telecommunications Sector, Department of Industry
Is there an auction in particular that you're looking for?
4:25 p.m.
NDP
Brian Masse NDP Windsor West, ON
I have the rundown of the previous ones, but I guess the point is that we're looking at billions of dollars here. Is this correct?
4:25 p.m.
Senior Assistant Deputy Minister, Spectrum and Telecommunications Sector, Department of Industry
Yes, I think that's a fair forecast. The 600-megahertz auction that I referred to earlier was in early 2019, and the government collected $3.4 billion in revenue from that auction.
4:25 p.m.
NDP
Brian Masse NDP Windsor West, ON
Is there a time frame on the “use it or lose it” policy? How do you incorporate that?