Industry Committee on Nov. 26th, 2020

[Brian Masse, NDP, Windsor West, ON]

That's my concern. I think, quite frankly, you have impossible time frames. There needs to be some support for modernizing our approach.

A lot of investment decisions are held up because of the CRTC, not because of the fact that people aren't working there and you don't want to move files along. I have every confidence in your getting work done there. I think that given the fact that Canada wants to expand these services rather quickly—and I know that as New Democrats we've been saying this is an essential service, one that is even connected to people's basic rights—your task is insurmountable to roll it out properly and affordably within a few years with the resources provided.

I don't know if you want to comment on your budgetary resources, and you don't necessarily have to do that, but do you think you have the functions to do—

[The Chair, Liberal, Sherry Romanado]

My apologies, Mr. Masse. You're over time.

[Ian Scott]

Can I make one very quick response, Madam Chair?

[The Chair, Liberal, Sherry Romanado]

Very quickly.

[Ian Scott]

We do have the resources. In fact, we recover the cost of regulating from the carriers. Generally speaking, we do move reasonably briskly. We are referring to some unique processes.

[The Chair, Liberal, Sherry Romanado]

We'll now start our second round of questions, beginning with Mr. Nater for five minutes.

[John Nater, Conservative, Perth—Wellington, ON]

Thank you, Madam Chair, and thank you, Mr. Scott, for joining us this morning.

You mentioned there were about 600 applications in the second round. How many applications were submitted in the first round?

[Ian Scott]

I have to go to my notes, 15 or 16, I believe. Ms. Doiron, is that correct?

[Renée Doiron]

Correct, 15.

[John Nater, Conservative, Perth—Wellington, ON]

Those were focused mainly on areas that are currently served by satellite. Of those 15 applications, were there other companies other than the single proponent that actually received funding, NorthwesTel?

[Ian Scott]

First of all, NorthwesTel did receive funding in four of the projects. There was another in northern Manitoba that was not NorthwesTel in those initial ones. NorthwesTel had some other applications, as did a number of other operators among those 15.

[John Nater, Conservative, Perth—Wellington, ON]

You mentioned that you were working quickly to go through those 600 applications. Is there a timeline you've committed to, to have those applications adjudicated?

[Ian Scott]

No. Again, I hope it doesn't sound defensive, but we don't commit to timelines. Whether it is in assessing the broadband proposals, or whether it is on another file, going back to Mr. Masse's question, our process is to develop a record. We make sure that all parties have an opportunity to file with us, develop the record, and then we make the best decision. That takes, if you will, the time that it takes. We move as quickly as possible on the highest value projects.

[John Nater, Conservative, Perth—Wellington, ON]

I appreciate that, and I'm not going to get into a debate, but the argument and the concerns we hear is that the time it takes to adjudicate puts us in a very tough position, especially for some smaller Internet service providers who simply don't have the time or resources to spend their time doing application after application, while waiting on applications for other applications.

Mr. Masse mentioned a dog's breakfast of different programs supporting broadband across the country. That's a great comparison, because, as Mr. Cumming mentioned, we have this vast array of programs—except your suggestion is that they do different things and focus on different areas. I agree with that in a sense, but at the same time, especially when we're talking about smaller service providers, they're spending massive resources and time doing applications for these different programs.

As a matter of principle, would it not be better if these were streamlined into a single window application, a single organization, a single minister accountable, rather than being spread out across these different programs?

[Ian Scott]

I can only speak to the CRTC's program, and I tried to distinguish earlier why ours is different. It's not a government program; it doesn't come from taxpayers' contributions to a budget. It is from the carriers, and we are quasi-judicial and arm's-length, so ours is different.

To your point, I'm a little confused if you're referring specifically to the broadband process. I'll give you an example. On ours, we took the time to develop an application guide that is very detailed in order to support and assist smaller players so that they wouldn't have to spend a ton of time figuring out how to apply. We really have spent a lot of time and effort to facilitate that process.

I hope that answers your question.

[John Nater, Conservative, Perth—Wellington, ON]

Yes, it does to a degree, and I'm glad there are guidelines and guidance, but it's still time consuming for smaller operations to do multiple applications for different funds. I recognize you are different and apart, and I will leave it at that, because I do want to move on to another question.

How many BITS licences applications do you receive on an annual basis from new proponents?

[Ian Scott]

That's not information I have at hand, but there aren't many applications. They have to be renewed from time to time. Carriers that operate internationally have to have a BITS licence, but it's not a statistic I have at hand. If you would like, I can undertake to provide the committee with a number, but it's not large.

[John Nater, Conservative, Perth—Wellington, ON]

It would be great if you could provide us with a number.

I see that my time is just about up, so maybe I'll ask if you could also provide us with a written response on how many new entrants there are in the broadband market generally on an annual basis.

Thank you, Madam Chair, as I see that I'm out of time.

[Ian Scott]

We'll try to answer that.

[The Chair, Liberal, Sherry Romanado]

Thank you very much.

Mr. Scott, if you could send that information to the clerk, he'll make sure that it circulates amongst the members.

[Ian Scott]

Yes, Madam Chair.

[The Chair, Liberal, Sherry Romanado]

Thank you.

We'll now turn to MP Ehsassi.

You have the floor for five minutes.

[Ali Ehsassi, Liberal, Willowdale, ON]

Yes, thank you, Madam Chair.

I'd like to share my time with the member for Beaches—East York, please.

[The Chair, Liberal, Sherry Romanado]

Go ahead.

[Nathaniel Erskine-Smith, Liberal, Beaches—East York, ON]

Thanks very much, Ali.

Mr. Scott, I recognize that you said you don't want to comment on the current wholesale rates proceeding. That's fair, but you did say that the record is complete in that proceeding. When I read the Federal Court of Appeal's decision that upholds the CRTC's decision overall, there is indication that the company did not provide company-specific information. Can you at least confirm that when you say the record is complete, the companies have finally come forward with company-specific information this year as had been requested?