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Industry committee  I can tell you that our position on liberalization of foreign ownership restrictions is that it should be permitted in the case of infrastructure--and that would be telecommunications as well as cable--but not in the area of content; it would be carriage, but not content.

October 19th, 2006Committee meeting

Janet Yale

Industry committee  The fact of the matter is that nobody is suggesting that deregulation is appropriate where there aren't competitive market forces. So let's draw a clear distinction between where there is and isn't competition. That is the first point. The second point is to say that where you create cheap access to somebody else's infrastructure, there is no incentive to build your own.

October 19th, 2006Committee meeting

Janet Yale

Industry committee  I think it will actually enhance our ability to do that. The tax efficiencies associated with the conversion will actually give us more money to invest. As we have said many times, we are a capital-intensive industry. We've invested over $42 billion since 2000 in capital operating expenses and acquisitions.

October 19th, 2006Committee meeting

Janet Yale

Industry committee  I was just going to add that the TPR exercise was really an opportunity to catalogue the issues associated with the current regulatory environment, and we think the direction is an important first step in implementing reform. But I think the comprehensive nature of the recommendations in that report and the legislative package that is associated with it are really kind of the blueprint for addressing the key defects that we see in the current regulatory environment.

October 19th, 2006Committee meeting

Janet Yale

Industry committee  Maybe I can start. I think the reality, which a number of the panellists have pointed out, is that in the current regulatory environment, we are actually held back in a number of ways from making our best offers to customers. This in turn takes the pressure off our competitors; they don't have to be as sharp in their offers because they know there are certain ways we are unable to respond.

October 19th, 2006Committee meeting

Janet Yale

Industry committee  In three minutes or less?

October 19th, 2006Committee meeting

Janet Yale

Industry committee  That's a very important question. The direction will apply more in the regions where there is competition. It's important that there be protection and regulations where there aren't any. As regards the regions where there is no competition and not yet any broadband service infrastructure, in particular, a way must be found to ensure that all Canadian consumers have access, regardless of where they are in Canada.

October 19th, 2006Committee meeting

Janet Yale

Industry committee  Maybe I can start. Certainly our experience in western Canada has been the explosion of wireless as an actual substitute for local telephone service. As I said in my opening remarks, we're in a situation now where 10% of households in the Vancouver area do not have a wire-line telephone service, notwithstanding the obligation of all telephone companies to have a line to every home.

October 19th, 2006Committee meeting

Janet Yale

Industry committee  —of people who use it exclusively. On top of that, you obviously have the explosive growth in wireless services. It's not to say it's the only form of competition, but it's certainly meaningful competition and broadly available to most consumers in Canada. It really is important to recognize that in many markets today there are three facilities-based alternatives: the telephone company, the cable company, and at least one, if not multiple, wireless providers who are not affiliated with the telephone company in the marketing question.

October 19th, 2006Committee meeting

Janet Yale

Industry committee  You can't look at national averages and draw conclusions about the competitiveness of particular markets.

October 19th, 2006Committee meeting

Janet Yale

Industry committee  In urban centres, obviously, we're at or near the 25% threshold mentioned by the CRTC, in many markets, particularly if you include wireless only. It's our position, as you know from our appeal to the cabinet, that this threshold itself is too high.

October 19th, 2006Committee meeting

Janet Yale

Industry committee  Thank you, Mr. Chairman and members of the committee. When Parliament enacted section 8 of the Telecommunications Act, it intended to permit the Minister of Industry and the cabinet to take responsibility for a matter that should clearly be their responsibility, and that is the fundamental policy of the government in this critical sector of telecommunication.

October 19th, 2006Committee meeting

Janet Yale