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Wholesale Broadband Access and Regulatory Appeals in the Canadian Telecommunications Industry: an Institutional Analysis

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Wholesale Broadband Access and Regulatory Appeals in the Canadian Telecommunications Industry: an Institutional Analysis Wholesale Broadband Access and Regulatory Appeals in the Canadian Telecommunications Industry: An Institutional Analysis by Daniel Mackwood A thesis submitted in conformity with the requirements for the degree of Master of Information Faculty of Information University of Toronto © Copyright by Daniel Mackwood (2017) Wholesale Broadband Access and Regulatory Appeals in the Canadian Telecommunications Industry: An Institutional Analysis Daniel Mackwood Master of Information Faculty of Information University of Toronto 2017 Abstract This thesis focuses on Canada’s federal regulatory appeal procedure, the “Petition to the Governor in Council” (GiC), and questions how it integrates with other institutional actors in the country’s telecommunications policymaking apparatus. The research applies the Institutional Analysis and Development framework methodology to a recent GiC appeal decision in favour of mandated wholesale broadband access to fibre-to-the-premises facilities. This appeal decision, the thesis suggests, helps to illustrate how Canada’s telecommunications regulator, the CRTC, has maintained its ability to shape the specifics of policy outcomes. Despite GiC jurisdiction over the direction to telecommunications regulation, as well as obstructions to CRTC policy development that can transpire as a byproduct of GiC appeal decisions, the findings show that the CRTC has nevertheless defended its status as the lead actor in the regime. The thesis also points to areas where the GiC procedure would benefit from improved transparency and strengthened conduits for regional representation. ii Acknowledgments This thesis would not be in its current state without the support, patience, and enthusiasm of numerous individuals whom I feel obligated acknowledge and thank. First, I would like to extend my gratitude to the professors, students, and staff at the Faculty of Information and the Bora Laskin Law Library at the University of Toronto. They have been inspiring and deeply resourceful. I would like to offer my thanks to Professors Leslie Regan Shade and David Fewer for their kindness, perspective, and dedication. Their assistance has been an incredible asset. I am very grateful to Professor Catherine Middleton for her invaluable counsel and mentorship throughout the course of my studies. It has truly been a privilege to work with her. I must also express my sincere gratitude to Professor Rhonda McEwen, my supervisor. She has been instrumental in the completion of this thesis. Her energy, commitment, and guidance during this undertaking have been the precursory forces without which the chapters below would not have been written. I thank her inestimably. Furthermore, I would like to direct my heartfelt thanks to my friends and family. In particular, I thank my grandparents, brothers, and parents, Diane and Robert, for their ceaseless encouragement, comedy, and wisdom. I would also like to thank my parents for instilling in me a passion for reading and writing (as well as for proper grammar). Last, but certainly not least, to Lauren: thank you for being so inspiring, so brilliant, and so loving. I promise you, the thesis is finally done. iii Table of Contents ABSTRACT… ............................................................................................................................................ II ACKNOWLEDGMENTS ........................................................................................................................ III TABLE OF CONTENTS ......................................................................................................................... IV LIST OF TABLES .................................................................................................................................... VI LIST OF FIGURES ................................................................................................................................ VII LIST OF APPENDICES ....................................................................................................................... VIII 1. INTRODUCTION ...............................................................................................................................1 1.1. MOTIVATION AND PROBLEM STATEMENT ...................................................................................5 1.2. RESEARCH QUESTIONS ...............................................................................................................11 1.2.1. Primary Research Questions .............................................................................................11 1.2.2. Secondary Research Questions ..........................................................................................14 1.3. THESIS OUTLINE .........................................................................................................................16 2. LITERATURE REVIEW .................................................................................................................19 2.1. BACKGROUND ON WHOLESALE ACCESS REGULATION IN CANADA ..........................................19 2.2. INSTITUTIONAL ANALYSIS AND THE CANADIAN TELECOMMUNICATIONS POLICY REGIME .....21 3. METHODOLOGY ............................................................................................................................25 3.1. DATA COLLECTION .....................................................................................................................25 3.2. DATA COLLECTION: ADVANTAGES AND DISADVANTAGES .......................................................26 3.3. INSTITUTIONAL ANALYSIS AND DEVELOPMENT (IAD) FRAMEWORK METHODOLOGY ............27 3.4. THE IAD FRAMEWORK IN PAST STUDIES ...................................................................................35 3.5. THE IAD FRAMEWORK METHODOLOGY: ADVANTAGES AND LIMITATIONS .............................35 4. RESULTS ...........................................................................................................................................38 4.1. PROGRAM PARAMETERS AND OBJECTIVES ................................................................................38 4.1.1. What is happening in the policy arena? ............................................................................39 4.1.2. How do observed outcomes compare to policy objectives? ..............................................42 4.1.3. Which outcomes are satisfactory? Which are not? Which outcomes are most important? 44 4.1.4. When and where are these outcomes occurring? ..............................................................45 4.2. BIOPHYSICAL CHARACTERISTICS ...............................................................................................46 4.2.1. What is the economic nature of the activity? .....................................................................47 4.2.2. How will disaggregated wholesale FTTP service be produced? ......................................49 4.2.3. How will disaggregated wholesale FTTP service be provided? .......................................52 4.3. COMMUNITY ATTRIBUTES ..........................................................................................................53 4.3.1. What knowledge and information do participants have about the relationship among policy-oriented strategies, actions, and outcomes? ...........................................................53 4.3.2. What are participants’ values and preferences with regard to strategies for achieving outcomes? What are participants’ beliefs about the relationship among policy-oriented strategies, actions, and outcomes? ....................................................................................55 4.4. RULES-IN-USE .............................................................................................................................61 5. DISCUSSION ....................................................................................................................................71 5.1. ANALYSIS INTEGRATION ............................................................................................................71 5.1.1. Administrative Participant Role: The Minster of Industry and Provincial Consultations 72 5.1.2. Commenter Participant Role: Industry and Consumer Advocacy ....................................73 5.1.3. Complainant Participant Role: Bell Canada ....................................................................75 iv 6. CONCLUSIONS ...............................................................................................................................79 6.1. FINAL IMPRESSIONS ....................................................................................................................80 6.1.1. Primary Research Conclusions .........................................................................................80 6.1.2. Secondary Research Conclusions ......................................................................................84 6.2. RESEARCH CONTRIBUTIONS .......................................................................................................86 6.2.1. Application of the IAD Framework Methodology .............................................................86 6.2.2. Canadian Regulatory Law and Administrative Policy ......................................................87 6.2.3. The Wholesale Mandated Access Debate in Telecommunications Policymaking .............88 6.2.4. The Role of the CRTC in Canada’s Telecommunications Policymaking Regime .............89
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