How Canada’s Latest Policies Aim to Enhance Competition and Innovation
The Governor in Council issued a directive to the Canadian Radio-television and Telecommunications Commission (CRTC), known as the “Direction 2006.” This directive established the framework for how the CRTC should implement Canadian telecommunications policy objectives, guiding its approach to regulating the sector.
In 2019, a subsequent directive entitled ”Direction to the CRTC on Implementing the Canadian Telecommunications Policy Objectives to Promote Competition, Affordability, Consumer Interests and Innovation” was issued to further instruct the CRTC on enhancing competition, affordability, consumer interests, and innovation within the telecommunications industry. This 2019 directive was designed to build upon and refine the framework established by the 2006 Direction.
Since 2019, there have been significant developments in both the telecommunications market and its regulatory landscape. The Governor in Council has assessed these changes and concluded that updated directives are necessary to address the evolving context of the sector.
In compliance with the Telecommunications Act, the Minister of Industry released a proposed “Order Issuing a Direction to the CRTC on a Renewed Approach to Telecommunications Policy” on June 4, 2022. This publication provided an opportunity for stakeholders and the public to review and comment on the proposed changes. The direction advised that the CRTC should focus on several areas as a guide to its decisions, these areas include: (1) Promote Competition and Investment: Decisions should support various types of competition and encourage investment in the telecommunications sector; (2) Enhance Affordability: Efforts should be made to reduce prices, especially when major service providers have significant market control; (3) Ensure Access for All: Affordable and high-quality telecommunications services should be available throughout Canada, including in rural, remote, and Indigenous communities; (4) Protect Consumer Rights: The Commission should safeguard consumer rights, including those related to accessibility, in their interactions with service providers; (5) Lower Market Entry Barriers: Reduce obstacles for new, regional, or smaller service providers to compete effectively against larger, established companies; (6) Encourage Innovation: Support the development of new technologies and diverse service options in the telecommunications field; and (7) Stimulate Research and Development: Promote investment in research and development, and other important areas that enhance telecommunications services.
Source: Source: Canada SOR/2023-23, February 10, 2023.