Evidence of meeting #112 for Industry, Science and Technology in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was prices.
A recording is available from Parliament.
12:05 p.m.
Chief of Consumer, Research and Communications, Canadian Radio-television and Telecommunications Commission
In Quebec, through a combination of our own investments, the investments made through the innovation, science and industry department's programs and the investments made by the province of Quebec, we're on track to ensure connectivity throughout the province.
12:05 p.m.
Conservative
Bernard Généreux Conservative Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Can you tell all the people in my constituency when this will be resolved? What's the target deadline? Is it 2030, 2035 or 2045?
Government programs often encounter delays. I was a mayor and I saw this. In 2020, we were told that things would be ready in 2025. Now we're hearing 2035, and we'll need to keep waiting. The deadline keeps being pushed back. I think that, with the subsidies granted and the money spent, the 100% target should have been reached in Canada. Let's not forget that Quebec stepped up because it felt that Ottawa wasn't moving fast enough. It provided additional funding to speed up the process.
I recently had to go to bat for a company that was asked to spend $85,000 to bring fibre optics within 1.5 kilometres of its building. It's unbelievable that, in a developed country such as ours, a company must spend $85,000 to connect to fibre optics. It's crazy. I still don't understand why we're currently in this type of situation. Please explain.
12:05 p.m.
Chief of Consumer, Research and Communications, Canadian Radio-television and Telecommunications Commission
It's a tremendous task.
We have a vast territory and countless communities to continue to serve. The goal is to have 100% of Canadian households with access to broadband Internet by 2030. According to current projections, Quebec is already very close to reaching that target of 100%. You can talk to the Department of Industry about that. Of course, some places are still left out. We will have to look at the changes in Bell's plan and adjust to them.
12:05 p.m.
Conservative
Bernard Généreux Conservative Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
How are you able to adjust to those changes? You have funds, I imagine, or grants.
12:05 p.m.
Chief of Consumer, Research and Communications, Canadian Radio-television and Telecommunications Commission
Yes, we do have funds for broadband. Our fund represents 2% of all the billions of dollars you mentioned that will be invested. We have funding requests totalling $1.9 billion. We continue to work hard to ensure that all Canadians have access to broadband Internet.
12:05 p.m.
Conservative
Bernard Généreux Conservative Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
I have another question.
Mr. Chair, please be generous.
12:05 p.m.
Conservative
Bernard Généreux Conservative Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Ms. Pratt, Mr. Péladeau came to the committee two weeks ago and told us that he was the champion, across all categories, and that the others were no good or something like that.
I understand that Mr. Péladeau makes a lot of investments. He has made purchases in the west. We agree with that and there is no problem. However, as you just said, he does not have the same infrastructure in the west as he does in Quebec. He just offered $50 for a package at 100 megabits per second, if I understood correctly. Why is he unable to offer that same package in the west, as well, to lower prices there? Is it solely because the west does not have the same infrastructure as Quebec?
12:10 p.m.
Senior Deputy Commissioner, Mergers and Monopolistic Practices Branch, Competition Bureau Canada
It is important to us that competition ensure the lowest prices.
They don't really have there what they have in Quebec to be able to compete as vigorously as they do in Quebec. They don't own the infrastructure and they have to rely on a competitor for it.
12:10 p.m.
Liberal
12:10 p.m.
Liberal
Ryan Turnbull Liberal Whitby, ON
Thanks to all the witnesses for being here today. It's been a really great conversation. I'm learning a lot from you.
Let me start with Mr. Hutton.
You said that wireless prices are coming down. I just want to verify that. Some members on this committee don't like to hear that, but that's basically what Stats Canada has said.
Mr. Hutton, could you confirm that for us?
12:10 p.m.
Chief of Consumer, Research and Communications, Canadian Radio-television and Telecommunications Commission
Prices have been coming down. Using the CPI, they came down for comparative packages by 16% over the last year. They've been coming down since 2017 on that front.
Our position internationally has been marginally improving, but Canadians are certainly feeling that they are consistently paying higher prices. We're fully aware of that and we're fully committed to addressing that concern.
12:10 p.m.
Liberal
Ryan Turnbull Liberal Whitby, ON
I grant that. Canadians do not feel that prices are coming down. Even though, statistically, we know it's true, it's not landing for Canadians in the way that we need it to. They need to feel it, right?
One of the things our government did was reduce switching costs by allowing people to break their contracts with a $50 fee. Do you think this is a helpful tool?
My understanding is that if you are locked into a contract and prices have come down and companies are lowering their prices for different packages, you're not actually able to take advantage of that unless you actually switch, unless you actually break your contract and renegotiate with another supplier.
Ms. Pratt, would you like to speak to whether this is an opportunity for consumer education?
12:10 p.m.
Senior Deputy Commissioner, Mergers and Monopolistic Practices Branch, Competition Bureau Canada
As an organization, we actually want all consumers to see what benefits switching can give them. We've had promotions in which we actually promoted “switch week”. We have seen in particular sectors, including telecommunications, that being your own champion and seeing what deal you can get from other providers can benefit your own bottom line. I think that continues to be something we encourage consumers to do.
12:10 p.m.
Liberal
Ryan Turnbull Liberal Whitby, ON
Great. Thank you.
I know the Competition Bureau provided a submission to the CRTC on mobile wireless services. I guess that was fairly recently.
12:10 p.m.
Senior Deputy Commissioner, Mergers and Monopolistic Practices Branch, Competition Bureau Canada
Yes, it was.
12:10 p.m.
Liberal
Ryan Turnbull Liberal Whitby, ON
In that submission, I believe there were several recommendations, but also several findings. In particular, I wanted to highlight that where the big three providers of wireless services face a disrupter, prices drop significantly.
Is that true, Ms. Pratt?
February 26th, 2024 / 12:10 p.m.
Senior Deputy Commissioner, Mergers and Monopolistic Practices Branch, Competition Bureau Canada
That has been our finding and that's been our observation in addition to this one. It's an intervention that we did several years ago that showed that where we have a strong fourth player, prices in those regions tend to be lower.
12:10 p.m.
Senior Deputy Commissioner, Mergers and Monopolistic Practices Branch, Competition Bureau Canada
I'm not sure.
Ms. Sonley, do you have a range?
12:10 p.m.
Laura Sonley
It varied based on the degree of market share they were able to obtain. I can't remember the exact numbers. I think it's between—
12:10 p.m.
Laura Sonley
That's exactly it.
12:10 p.m.
Liberal
12:10 p.m.
Laura Sonley
In the study in 2019, yes.
