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The CRTC: to solve or dissolve?
The movement to break down the CRTC

“In my view, the CRTC has become a burden on the Canadian public,” reads an email from Mike. “I don’t want to see the commission completely dissolved and gone forever. We want the members of the commission to be dissolved.” 

“Mike” is Mike Lerner, a twenty-three year old software company employee Ottawa and a man who, if successful, may alter Canadian communications forever.

Frustrated by the regulatory incompetence of Canadian Radio-television Telecommunication Commission, Lerner founded dissolvethecrtc.ca earlier this year. The website since has become the rallying point for all dissatisfied Canadian internet users seeking change: He’s recruited 2000 members on Facebook and garnered more than 6500 online signatures. Should he collect 10,000, Canadian Heritage Minister James Moore  has promised to take the proposal to the floor. 

“The CRTC is not at all acting in the interest of the public,” Lerner tells me. “I don’t believe we can make any changes to the CRTC’s current state because they are not able to adapt to the changing markets they regulate.”

There’s much lurking in Lerner’s prognosis. Delving into the reasons behind the CRTC’s seeming inability to regulate is like opening up a computer: a reticulated mess incomprehensible to the decidedly un-techno laity, where one wire invariably leads to ten.

Take, for example, the recent decision to allow Bell Canada to implement usage-based billing, stunning for its lack of vision. In Canada, a company such as Bell Canada (wholesaler) sells access to the infrastructure (called Gateway Access Service or GAS) which independent ISPs then use to sell internet access to customers. One of the ways independents have been able to distinguish themselves in a market place dominated by looming tele-co giants, is to set their bandwidth ceiling very high—higher than Rogers or Bell. That is, until the CRTC passed an interim decision in August allowing Bell Canada to effect usage-based billing.

“One of the rationale behind usage based billing was that usage-based billing was already being applied to cable, and the regulation of cable shouldn’t be different from the regulation of broadband,” says Catherine Middleton, who as Associate Professor at the School of Information Technology Management at Ryerson, has been examining how Canadians use wireless broadband networks.

“But the practically side of that is that there is very little provision of broadband over cable,” she says.

Very little. In Canada, internet is effectively a duopoly.

But, the story of usage-based billing goes further than corporate bullying. Wrapped up in UBB is piracy, privacy, net neutrality—really, the question is existential: what are we on the internet and how ought the internet be used?

--

A question so large ought to, and most likely will, be never answered, only revisited continually by future generations. However, the discussion must first be fostered.

Enter the terms “CRTC” and “Net neutrality” and it soon becomes evident that the once stalwart guardian of Canadian broadcasting and guarantor of Canadian content, is now perceived by many as more corporate lackey than corporate watchdog. A string of controversial decisions, such as CRTC’s decision last week to release the names of three companies in violation of the Do Not Call List, widely regarded as a mishandled attempt to deflect scrutiny away from larger violators, has reinforced this view.

How did the CRTC come to this? And why is it so powerless to effectively regulate?

A part of the problem lies in the outdated documents the CRTC consults. The two documents, The Broadcasting Act and the Telecommunications Act, are both over a decade and a half old, with the former being conceived in 1968, long before the internet existed. (The Broadcasting Act was amended in 1991, but more or less retains its original form.)

“The Broadcasting Act reflects effectively the policy concern at the time and that is whether or not they would carry enough Canadian content,” says Michael Janigan.

Michael Janigan, the Executive Director and General Counsel of the Public Interest Advocacy Centre, has been involved with telecommunication issues, amongst others, since the seventies.

“Nobody ever imagined the idea that it would become an important service or a platform for the launch of other services like the internet,” he says.

As crucial as internet services are, our ruling documents contain nothing about the rights of the consumer or reasonable rates.

“CRTC doesn’t have the power to regulate in the way most people want them to regulate,” says Janigan.

Some of that could be attributed to former industry minister Maxime Bernier, who, in 2006, directed the CRTC to proceed with a “light regulatory touch,” adding that consumers would benefit “from greater choices and improved products and services” stemming from increased competition in the  marketplace.

Since Bernier’s tenure, complaints regarding the CRTC have increased.

“It turned everything on its ear,” says Janigan. “The policy objectives of access and affordability are being compromised in order to de-regulate.”

“Now we’ve got a whole raft of things that are being de-regulated and not being looked at, like quality of service. And it’s all being done under the aegis of Bernier’s policy directive.”

--

When asked what the ideal CRTC would look like, Mike Lerner responded, “The ideal CRTC can  understand new business models, listens and acts on public’s interests and not in favour of the media or telecom companies. A commission that is transparent and open with the Canadian public.”

Whether a commission encumbered by outdated guiding documents and a crippling policy directive can emulate Lerner’s ideal remains to be seen. It’s necessity, however, is very apparent.

“How do we want a public network to be used? The provision of a broadband network across Canada has to be looked upon in the same way as the provision of railroad was a hundred years ago. And whether or not these policies are commodious to the development of the country,” says Janigan.

“These products and services will shape the growth of this country for a long time to come.”

Sep 10, 2009 at 07:37 AM
Copyright 2010 NOW Communications
Comments
Posted by Beavertail on 09/10/2009, 10:13 AM
The sense of entitlement and get something for nothing mentality got to go. CAIP is just that. Want bandwidth but do not want to pay for it. Want entitlement to a piece of the pie without working for it. It is a big market out there. CAIP can find niche markets other than the only selling point - all you can eat bandwidth. CAIP doesn't build network, hence they don't understand the engineering of a network which traffic management is a must. Otherwise, for an unlimited bandwidth to work, you would need to connect point-to-point, a star network. This is a nightmare network. Go educate yourself before crying like a baby about bandwidth. Think like an adult of how to compete in other ways rather spreading garbage against CRTC decision. By the way, there is a lot of competition in the market place as is...Bell, Telus, Rogers, MBT, Shaw. Bell Aliant. Saying it is going to be a monopoly without CAIP is a load of CRAP.

Posted by Hexodis on 09/10/2009, 10:51 AM
I find it hilarious that there are still people who defend the CRTC after the blunders we've seen. How is it that people talk about unlimited bandwidth and its impossibility when other countries are getting along just fine with unlimited bandwidth. I am talking about South Korea, which is a model of how things can work when people and government work as one. They enjoy an AVERAGE speed of 75 MB/S. You never once hear about limitations on that kind of network. We are in an age where technology knows no bounds, yet we are held back by companies who would rather make billions of dollars instead of investing into infrastructure. Today we have the technology, capability and knowledge to manage and implement fast synchronous internet topologies without the need for privacy violating DPI or costly bandwidth restriction. The cost of implementing these technologies is not that much greater than the cost of maintaining our current and even our older infrastructure. Bell spent countless hours (and money) setting up the current DSL network we have now, this is outdated. Plain and simple. It is now an old technology and although cable is faster, they are no better. Clinging to these old technologies only make things worse. Then you start getting into bandwidth troubles, but that's the way they want it, this way they have an excuse to charge you for your usage. If they upgraded, that excuse would no longer be valid, and we are made to believe that upgrading is impossible, when it is apparent that it is if we take our blinders off and look at how other tackle the same issues. The only difference between us and them is that we put our trust in a commission that doesn't have the basic sense to keep the public's interests at heart. What we need is a system that fights for the people, not against them, works to solve corporate "bandwidth issues" not give them excuses to charge more. Ultimately I would pay for exceeding my bandwidth if I knew that it was a temporary boost for the telecommunication companies to develop better infrastructure so that bandwidth is no longer an issue. Had this been done earlier I believe DPI would not have been necessary, and there is never an excuse to force wholesale customers to such an invasive traffic management system without notice, warning or even without going to the CRTC first. By doing this they are effectively saying 'we know it's wrong, but the CRTC will back us up and we'll get our approval if someone makes a fuss.' This sort of behavior should not be tolerated by the CRTC and there shouldn't have been deliberation, a cease and desist order should have been given on behalf of the wholesale customers. Bell can do what it wants to direct customer of Bell, that's their right, but messing with competition is simply outrageous.

Posted by Adrian on 09/10/2009, 11:42 AM
Beavertail, let me correct your post for you. I've changed a few words here and there, and corrected some grammar, but I feel the content is much more accurate now.

The sense of entitlement and milking your customers for everything they've got, 'got to go'. The duopoly is just that. Got some bandwidth, but want people to pay through the nose for it. Want entitlement to the entire pie without working to keep it. We'd like to convince you it is a big market out there. But, the duopoly can bully their way into all markets by limiting their competitors from their distinct services, which they're good at. One of which is - all you can eat bandwidth. The duopoly doesn't build their network until their customers are crying for an upgrade, hence they don't understand the engineering of a network that keeps up with demand. Therefore, for an unlimited price, you connect to a throttled, limited, shaped, UBB-enforced and DPI-infested network. This is a nightmare network. Go educate yourself before crying like a baby about competition. Think like an adult of how to compete in other ways rather than forcefully limiting the little guys. By the way, there is virtually no competition in the market place as you will never find more than 1-2 of these services truly available in one area: Bell, Telus, Rogers, MBT, Shaw. Bell Aliant. Saying it is going to be a monopoly without CAIP is perfectly justified.

Posted by Kevin on 09/10/2009, 01:14 PM
It still boggles my mind that Bell is getting away with submitting UBB proposal when it was supposed to submit a new tariff for the higher speeds.

It's like a student submitting an irrelevant report on rabbits when he was asked to submit a report on bears, and getting an A+ from the teacher.

How screwed up is the system?

and Beavertail, you obviously don't know the details of what is going on. I'm guessing you work for Bell. LOL @ "there is a lot of competition."

Posted by Marcus on 09/10/2009, 04:28 PM
I would like to thank Matthew Kim for writing this article and Now for publishing it. It really is an issue that needs more exposure.

If one takes a look at who, one way or another, controls most forms of media in this country, it is not surprising that the problems are not getting the exposure they deserve.

Unless something is done soon Canada is going to be left in the telecommunication stone age, while its citizens are paying some of the highest rates in the World.

Most of the recent actions of the CRTC defy logic and leave one wondering if the cause is corruption or just incompetence. Whichever, something has to be done and done soon.

With the possibility of an Federal election just around the corner there is no time like the present to apply pressure to politicians of all stripes.

Hopefully the many readers of NOW will take the time to look at the big picture, where Canada stands in the telecommunications world, the lack of real competition and the diminishing choice of services.

Visit Mike Lerner's site and sign the petition.

Posted by Josephk on 09/10/2009, 04:29 PM
Beavertail has been drinking too much laced Kool-Aid. He's believing Bell's statement (that was proved a lie) that 95% of the BW is used by 5% of the population; all the people that are pirating movies 24/7/365. Sorry, pal, but you can't be more out of touch with reality if you tried.

We're no longer in the "BBS world" of 1982, where a large file was 10kbytes. A 10MP picture you send to granny is approximately 5Mbytes - 500x the previously mentioned file. People play games online. People work online. Large software packages are BOUGHT, then downloaded, then periodically upgraded.

Take a look at most of the websites you visit - can you figure out how many kilobytes in script are there that came down that you didn't authorize? How about throttling, where your data is destroyed so you have to resend it? The # of gigabytes downloaded per person per unit time will only increase, not decrease.

Folks with Beavertail's mentality are just the types that brought on the the Spanish Inquisition. He also wants no choice for the population, nor competition.

Posted by Josephk on 09/10/2009, 04:37 PM
Matthew, definitely thank you for putting this out in print. The only people that have even shown a glimmer of this injustice is the CBC. No other telecommunications media has made as much as a peep about this. WHY???

Might it just be that Bell, Rogers, Tellus own significant shares in the radio & television stations, and in a number of the larger newspapers? Might it just be they're squashing the story so that the average person is kept in the dark (until it's too late)?

Think about it, people? Why is it a few people doing something stupid can make headlines, where 6000+ people try to improve a situation, and the coverage is nada, zip, nitz, nothing by the majors?

The Rogers, Bells, and their likes really do want to keep you uninformed of the real issues, and just feed you sanitized dribble. Disgusting!

Posted by michael hennessy on 09/12/2009, 09:04 PM
Hey Josephk as the TELUS guy I can assure you we dont own or invest in any newspapers ,tv or radio stations. We are investing in wireline and wireless bb to compete with Shaw,Rogers and Bell. Some 2billion dollars worth. If you think someone controls the media try the profitaablr broadcasters who own the papers and are selling a TV tax wrapped in nationalistic rhetoric

Posted by Rickster on 09/13/2009, 05:15 AM
"...and garnered more than 6500 online signatures. Should he collect 10,000, Canadian Heritage Minister James Moore has promised to take the proposal to the floor...." ----------------------------------------------- -make that "7756" as of now. Keep it up Canada. :)

Posted by Rickster on 09/13/2009, 05:52 AM
-please ignore this :) BEAVERTAIL said: "...By the way, there is a lot of competition in the market place as is..."

uhmm ?, naa, not even worth it, this is just flamewar material people.

I think "BEAVERTAIL"'S "Traffic Management" expertise is causing too many collisions so its time to replace, or atleast educate yourself dude ! -you're a real "bell phone"y.

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