February 12, 2019

Ms. Patricia Brady, Director General Telecommunications and Internet Policy Branch Innovation, Science and Economic Development Canada 235 Queen Street, 10th Floor Ottawa, Ontario K1A 0H5

Filed electronically: [email protected]

Re: Canada Gazette, Part I, December 14, 2019, Volume 153, Number 10: Notice No. TIPB-002-2019 — Petitions to the Governor in Council concerning Telecom Order CRTC 2019-288

Dear Madame Director-General

The Atlantic Chamber of Commerce (ACC) is writing to register its support for the petition by our corporate partner, Bell Aliant, and other major cable providers to rescind the CRTC decision to unilaterally reduce the wholesale rates charged by facility-based companies to Internet resellers. We submit that the decision will create conditions in the marketplace that are fundamentally opposed to the Commission’s mandate to regulate telecommunications to ensure that (all) Canadians have access to a world class system that promotes innovation and enriches lives.

The ACC is a voluntary association of chambers of commerce situated in 93 communities across the Atlantic provinces. Given that the population of Atlantic Canada is highly rural (twice the national average) a majority of our members include chambers of commerce in under-serviced communities. Many have been voiced concerns for several years about the impact of limited access to high-speed internet on their communities, businesses and ability to grow their populations.

We urge the Governor in Council to reconsider or rescind CRTC Order 2019-288 on the basis that maintaining up to date technology and achieving last-mile build out to rural communities requires billions of dollars of investment, none of which can be expected from internet resellers. The impact of reducing wholesale rates to resellers by more than 70% is already forcing Canada’s network infrastructure providers to reduce broadband development investments especially to rural Canada. Eastlink, a major provider in Atlantic Canada has already announced a $50M reduction and scale back on rural connectivity improvements.

Our principle concerns regarding the CRTC order are in relation to competitiveness and national objectives for universal access to high-speed internet. In our analysis,

PO Box 2291 Windsor NS B0N 2T0 T: 902-698-0265 www.atlanticchamber.ca wholesale rate reductions to resellers is not warranted as competitive pricing in relation to current network demands already exists (Competition Bureau, Aug 2019) and will decrease private sector ability to invest building less profitable rural infrastructure, placing a greater demand on governments to achieve national coverage objectives.

All Canadians must have access to reliable high-speed networks if we are to be competitive in a an increasingly digital, global world. By imposing rate reductions to reduce costs to resellers with no motivation to invest in expansion or technology upgrades, the CRTC has effectively reduced the potential for promoting “innovation and enriching lives.”

Additional observations provided by our members include:

1. Development and maintenance of world class networks require profitability The Government of Canada should be encouraging private sector investments in broadband and take appropriate action when regulatory decisions put investment at risk. 2. High-speed internet access is essential for sustaining rural businesses and communities Canadians in smaller communities and rural areas need the social and economic benefits, improved public services, employment, health care and educational opportunities provided by improved broadband networks 3. Connecting rural communities requires significant investment Federal, provincial and CRTC funding programs will come nowhere near achieving universal access, private sector investment is required. Decisions that shift capital from builders to resellers will only slow progress on this front, unless more public subsidies are provided by government. 4. The CRTC process of rate setting misses the big economic picture The order does not adequately incorporate the extended impacts of pricing broadband below costs in terms of lost investment, worsening the rural-urban digital divide, lost employment, and disadvantaging rural businesses. 5. The actual rate reduction decision was unnecessary and unwarranted The application of a retroactive discount of over 70% is regressive and according to outside source not required in a market already assessed as one of the most competitive in the world.

Canada is a country characterized by a large landmass and extensive low population density areas. We strongly support the concept that, to the extent possible, all Canadians should be able to enjoy the economic and social benefits of reliable, robust internet access. Order 2019-288 will threaten or delay these outcomes by trying to address a competitiveness gap that does not actually exist.

The ACC strongly urges the Government of Canada to recognize that increased private sector investment in broadband networks, especially in rural areas are desperately needed and it is essential that Order 2019-288 be rescinded to avoid further delays in providing smaller, isolated communities with advances in digital healthcare, education, safety, information and entertainment.

Best Regards,

Glenn Davis ACC VP Policy.

CC: The Hon. Navdeep Bains, PC, MP, Minister of Innovation, Science and Economic Development [email protected]

PO Box 2291 Windsor NS B0N 2T0 T: 902-698-0265 www.atlanticchamber.ca

February 13, 2020

Ms. Patricia Brady Director General, Telecommunications and Internet Policy Branch Innovation, Science and Economic Development Canada 235 Queen Street, 10th Floor Ottawa, Ontario K1A 0H5 Via email: [email protected]

Dear Ms. Brady,

RE: Petitions to the Governor in Council concerning Telecom Order CRTC 2019-288

I am writing to you today on behalf of the BC Chamber of Commerce which represents over 120 chambers and 36,000 business of every size, sector and region of British Columbia. We believe that its critically important our members and their customers – whether in the biggest city or a small rural community – have access to high-speed internet, which is critically important to grow a prosperous, competitive economy in both rural and urban BC.

That is why the BC Chamber and our network of chambers and boards of trade can support the federal government’s objective of balancing affordability, competition, investment, innovation and expansion to rural, remote and Indigenous communities.

After reviewing the recent decision by the Canadian Radio-Television and Telecommunications Commission (CRTC), which establishes new wholesale rates for the owners of telecommunications network infrastructure that are considerably lower than what was applied in 2016, we support the petition’s request that Cabinet direct the CRTC to reconsider its decision in light of all of the government’s policy objectives.

The network owners have raised serious concerns in their petition, and we believe that those concerns need to be addressed by the CRTC. Our organization is concerned that this decision could cause Canada to fall behind other countries in terms of broadband speed, which will affect the ability of our members to compete in an increasingly global and digital economy. Furthermore, we are concerned that this decision could adversely impact the expansion of broadband internet to more rural, remote and Indigenous communities and increase the digital divide that currently exists between urban and rural Canada.

Our organization/municipality is requesting that Cabinet direct the CRTC to reconsider its decision. That reconsideration must be done by:

• Applying a rural lens to the decision to ensure that the new wholesale rates set by the CRTC will not adversely impact investment by network owners in the expansion of networks in rural and remote communities to ensure Canada meets our ambitious broadband targets, and

BCCHAMBER.ORG | [email protected] | #1201 - 750 W PENDER ST, VANCOUVER, BC, V6C2T8 | P 604.683.0700 | F 604.683.0416

• Applying an economic development lens to the decision to ensure that revised wholesale rates do not adversely impact investments required to keep Canada in the top ten internet speeds on world indices.

Access to high-speed internet is critically important for Canada’s economic and social well-being and it is critical that the CRTC gets this decision right.

Yours truly, The British Columbia Chamber of Commerce

Val Litwin President and CEO

BCCHAMBER.ORG | [email protected] | #1201 - 750 W PENDER ST, VANCOUVER, BC, V6C2T8 | P 604.683.0700 | F 604.683.0416

February 14, 2020

Director General, Telecommunications and Internet Policy Branch Innovation, Science and Economic Development Canada 235 Queen Street, 10th Floor Ottawa, Ontario K1A 0H5 Filed electronically: [email protected]

RE: Canada Gazette, Part 1, December 14, 2019, Petitions to the Governor in Council concerning Telecom Order CRTC 2019-288 (Notice No. TIPB-002-2019)

I am writing to you today on behalf of the Business Council of Canada, which represents business leaders in every region and sector of the country. The Council’s member companies employ 1.7 million Canadians, contribute the largest share of federal corporate taxes, and are responsible for most of Canada’s exports, corporate philanthropy and private-sector investments in research and development.

Last year, the Business Council launched the Task Force on Canada’s Economic Future, which engaged Canadians from across the country to advance policies that enhance growth and ensure a better future for all. This culminated in the report, A Better Future for Canadians, which outlined how government, businesses and other stakeholders can work together to strengthen Canada’s economic capacity, accelerate growth and spur investment for the benefit of all Canadians. Two of the report’s major recommendations were to modernize the regulatory environment, by committing to make Canada the most efficiently regulated country on earth, and to prioritize nationally significant infrastructure projects.

With these two recommendations in mind, the Business Council of Canada has reviewed the recent CRTC decision on wholesale internet access and the subsequent petitions filed with cabinet. We believe that it is critically important for Canada to have access to high-speed internet coast-to-coast to ensure Canadian businesses can take advantage of new technologies and be leaders in global research and development. Despite our geographically diverse and large country, Canada has consistently ranked in the top 20 worldwide for fixed broadband speeds due to the significant investments made by Canadian telecommunication companies.

Many of these companies have billions in investments planned for infrastructure in Canada over the next decade, including the roll out of fibre to the home networks and upgrades to existing hybrid fibre-coax networks to deliver faster speeds. The private sector is ready to step up to help Canada continue being global leader in internet connectivity. However, the CRTC’s decision makes it difficult for these companies to move forward with their ambitious plans for investment.

The owners of Canada’s broadband networks have raised serious concerns in their petitions to the federal cabinet about the impact the new wholesale rates, which do not even cover the cost to operate existing infrastructure, will have on their ability to continue their investments. The Business Council of Canada is concerned that this decision could adversely impact the investment required to increase broadband capacity and speed for Canadian business. Furthermore, we are also concerned that the CRTC decision will have a detrimental impact on the expansion of broadband internet to rural, remote and Indigenous communities and increase the digital divide that currently exists between urban and rural Canada. We are also concerned that this decision could cause Canada to fall behind other countries in terms of broadband speed, which will affect the ability of our business community to compete in an increasingly global and digital economy.

This is why the Business Council is requesting that Cabinet either overturn the decision to restore rates to previous levels or direct the CRTC to reconsider its decision altogether. Access to high-speed internet is critically important for Canada’s economic and social well-being and it’s critical that the Government and the CRTC gets this decision right.

Thank you for taking these views into consideration.

Sincerely,

CC: The Hon. Navdeep Bains, PC, MP, Minister of Innovation, Science and Industry

Patricia Brady February 13, 2020 Director General, Telecommunications and Internet Policy Branch Innovation, Science and Economic Development Canada 235 Queen Street Ottawa, Ontario K1A 0H5

Dear Ms. Brady, RE: Canada Gazette, Part 1, December 14, 2019, Petitions to the Governor in Council concerning Telcom Order CRTC 2019-288 (Notice No. TIPB-002-2019) I am writing to you today on behalf of the Calgary Chamber of Commerce, an independent, non- profit, non-partisan business organization. For 128 years, we have worked to build a business community that nourishes, powers, and inspires the world. We believe that it is critically important for our business community to have access to high-speed internet, which is essential for businesses to effectively deliver their goods and services. We also support the federal government’s objective of balancing affordability, competition, investment, innovation and expansion to rural, remote, and Indigenous communities. We had the opportunity to review the recent decision by the Canadian Radio-Television and Telecommunications Commission (CRTC), which establishes new wholesale rates for the owners of telecommunications network infrastructure, and the petition to the Federal Cabinet filed jointly by cable companies (Eastlink, Cogeco, Rodgers, Shaw, and Videotron), which requests that Cabinet direct the CRTC to reconsider its decision in light of the government’s policy objectives. The network owners have raised serious concerns in their petition, and we believe that those concerns need to be addressed by the CRTC. The Calgary Chamber of Commerce is very concerned that this decision could cause Canada to fall behind other countries in terms of broadband speed, which will affect the ability of our businesses to compete in an increasingly global and digital economy. Furthermore, we are concerned that this decision could adversely impact the expansion of broadband internet to rural, remote, and Indigenous communities and increase the digital divide between urban and rural Canada. As economies transition to provide more digital services, businesses need every opportunity to excel. Ensuring Calgary’s businesses have the tools to succeed is critical to maintaining our global competitiveness and Calgary’s potential to prosper in the economy of the future. The Calgary Chamber of Commerce is requesting that Cabinet direct the CRTC to reconsider its decision. That reconsideration must be done by applying an economic development lens to the decision, to ensure that revised wholesale rates do not adversely impact investments required to keep Canada in the top ten internet speeds on world indices. Access to high-speed internet is critically important for Canada’s economic and social well-being and it is vital that the CRTC gets this decision right.

Yours Sincerely,

Dr. Sandip Lalli President & CEO Calgary Chamber of Commerce

Le 14 février 2020

Directrice générale Direction générale de la politique des télécommunications et d’Internet, Innovation, Sciences et Développement économique Canada 10e étage, 235, rue Queen Ottawa (Ontario) K1A 0H5

Objet : TARIFS DES SERVICES D’ACCÈS INTERNET DE GROS (TPIA) Partie I de la Gazette du Canada, 14 décembre 2019, volume 153, numéro 50. Avis no TIPB-002-2019 — Pétitions présentées à la gouverneure en conseil concernant l’ordonnance de télécom CRTC 2019-288

Madame,

La présente a trait à la décision du CRTC mentionnée en objet portant sur l’ordonnance de télécom CRTC 2019-288 – Tarifs définitifs concernant les services d’accès haute vitesse de gros groupé, datée du 15 août 2019.

Au nom des employeurs du Québec, le CPQ (Conseil du patronat du Québec) tient à exprimer ses préoccupations quant à l’impact de la décision du CRTC concernant les tarifs d’accès haute vitesse de gros groupés, sur le développement et la compétitivité de nos entreprises québécoises et canadiennes et ultimement sur le développement économique du Canada. Le CPQ désire également exprimer son appui à l’égard de la pétition des grandes entreprises canadiennes dotées d’installations visant à renverser cette décision et rétablir un équilibre sain entre tous les acteurs canadiens du marché des services à large bande. Les impacts de ces tarifs établis par le CRTC sont majeurs et risquent fort d’affecter la position concurrentielle du Canada pour ce qui est des investissements actuels et à venir dans le marché des services à large bande alors que les besoins et les enjeux sont grands.

Tout en étant favorables à une saine concurrence dans le marché canadien des télécommunications, nous croyons que le CRTC adopte une mauvaise approche en mettant à risque la capacité des entreprises dotées d’installations de rentabiliser leurs investissements dans leurs réseaux les plus avancés. À notre avis, cette décision, si elle est maintenue, nuira substantiellement aux futurs projets d’investissements de même nature. Or, ces investissements constituent un ingrédient essentiel pour améliorer la productivité et la compétitivité de notre économie et un ralentissement pourrait avoir des impacts négatifs significatifs sur l’économie canadienne. De plus, ces investissements sont créateurs d’emplois de qualité bien rémunérés.

En forçant les principales compagnies dotées d’installations à rendre accessibles leurs réseaux à des tarifs inférieurs aux coûts réels, cette décision met en péril la capacité de ces entreprises à réaliser des projets d’expansion en région et dans les milieux ruraux adjacents aux territoires qu’elles desservent.

Ce sont dans les villes plus petites, les collectivités rurales et les régions plus éloignées que l’impact se fera le plus sentir, car le déploiement de nouvelles générations de réseaux sera retardé, ou même annulé. Or ces investissements sont prioritaires pour permettre la meilleure connectivité des régions et leur développement économique, tel que le note avec justesse la politique du gouvernement de favoriser les investissements dans les infrastructures numériques et de brancher toutes les régions.

Cette décision de favoriser la revente au détriment des investissements paraît d’autant plus surprenante puisqu'elle ne cadre pas avec les principaux objectifs de la politique du gouvernement canadien favorisant l’abordabilité, la concurrence, l’investissement, l’innovation et l’expansion de l’accès à l’internet haute- vitesse dans les communautés rurales, éloignées et autochtones.

Les trois volets de la décision du CRTC sont problématiques

L’obligation imposée aux entreprises dotées d’installations de donner un accès de gros à leurs réseaux à des tarifs inférieurs à leurs coûts minerait leur intérêt à construire des réseaux et à innover. Les tarifs envisagés, qui représentent une diminution pouvant atteindre jusqu’à 82 %, affecteront substantiellement la capacité des grands fournisseurs d’investir et auraient donc des impacts négatifs significatifs sur l’économie canadienne.

De plus, le CRTC a imposé un taux fixe (flat rate) pour les tarifs d’accès de gros par client final et ce, peu importe la vitesse. Cette mesure est à contre-courant et renverse le modèle de prix de détail selon lequel les fournisseurs de services internet facturent plus cher pour les vitesses plus élevées, ce modèle étant essentiel à la capacité de développer constamment les réseaux.

Troisièmement, le CRTC a décrété rétroactives (remontant jusqu’à 2016) les réductions tarifaires, une mesure punitive qui obligerait les entreprises dotées d’installations à verser plus de 325 M$ aux revendeurs, sans que ces derniers n’aient la moindre obligation de rembourser les consommateurs ou d’investir ces sommes dans les installations.

Historiquement, le CRTC s’est toujours efforcé d’établir des tarifs de gros qui permettent d’atteindre un équilibre entre l’augmentation des investissements des constructeurs de réseaux et la possibilité pour les revendeurs d’offrir des prix de détail concurrentiels aux consommateurs. Or, la récente ordonnance du CRTC ne parvient pas à atteindre cet important équilibre et forcera les principaux fournisseurs à réduire leurs investissements dans les réseaux à large bande, particulièrement dans les régions rurales. En fait, certaines de ces entreprises ont déjà annoncé des réductions de leurs investissements prévus.

Un rapport de la Banque TD produit après la publication de l’ordonnance, a conclu que les entreprises dotées d’installations seraient obligées de réduire leurs investissements dans leurs installations filaires de l’ordre de 1,68 G$ par année (une réduction de 22 % comparativement à la dernière décennie).

Cette situation est particulièrement inquiétante considérant que l’économie numérique connaît une croissance rapide et que l’industrie est sur le point d’investir massivement dans la large bande rurale et ainsi d’atteindre l’objectif du gouvernement fédéral d’assurer une couverture internet haute-vitesse à l’échelle du pays.

Rappelons par ailleurs que le Bureau de la Concurrence avait constaté qu’« un grand nombre de Canadiens bénéficient d’un choix significatif en ce qui concerne les fournisseurs de service internet et qu’ils sont généralement satisfaits de leur fournisseur actuel ... » et « que la force des réseaux haute vitesse au Canada dépend des investissements et de l’innovation des entreprises de télécommunication traditionnelles ».

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Le CPQ exhorte le gouvernement du Canada à renvoyer l’ordonnance Télécom CRTC 2019-288 au CRTC pour réexamen des tarifs en gros. Les tarifs finaux devraient être compatibles avec les principaux objectifs du gouvernement : la concurrence, les investissements, l’innovation et la connectivité des régions.

Nous vous remercions de l’attention que vous accorderez à la présente, et nous vous prions d’agréer, Madame, l’expression de nos sentiments distingués.

Le président et chef de la direction

Yves-Thomas Dorval, Adm.A., ASC, ARP YTD/nk

c.c. : L’honorable Navdeep Bains, C.P., ministre de l’Innovation, des Sciences et de l’Industrie L’honorable Maryam Monsef, ministre des Femmes et de l’Égalité des genres et du Développement économique rural L’honorable Steven Guilbeault, ministre du Patrimoine canadien M. Pierre Fitzgibbon, ministre de l’économie et de l’innovation du Québec

À propos du CPQ :

Créé en 1969, à l’issue d’un consensus dégagé entre les entreprises, les syndicats et le milieu universitaire, le CPQ est une confédération de près de 100 associations sectorielles et de plusieurs membres corporatifs (entreprises, institutions et autres employeurs). Il représente ainsi les intérêts de plus de 70 000 employeurs de toutes tailles, issus des secteurs privé et parapublic. www.cpq.qc.ca

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The Manitoba Chambers of Commerce 550-201 Portage Ave Winnipeg, MB R3K 3B6

February 14, 2020

Director General Telecommunications and Internet Policy Branch Innovation, Science and Economic Development Canada 235 Queen Street, 10th Floor Ottawa, Ontario K1A 0H5 Filed electronically: [email protected]

Re: Canada Gazette, Part I, December 14, 2019, Volume 153, Number 10: Notice No. TIPB-002-2019 — Petitions to the Governor in Council concerning Telecom Order CRTC 2019-288

On behalf of the Manitoba Chambers of Commerce (MCC), which represents 71 local Chambers of Commerce throughout Manitoba, totaling almost 10,000 business members, I would like to provide comments about the recent decision by the Canadian Radio-Television and Telecommunications Commission (CRTC) that affects Canada’s Internet reseller regime We are supporting our Manitoba stakeholders’ request that Cabinet overturn this decision.

Greater wireless and broadband Internet access has the power to transform rural Canada, as connectivity is now as important as building and maintaining roads and bridges in rural, remote, and northern communities. That is why we believe that it is critically important for all Manitoba municipalities to have access to high-speed internet as local Councils strive to grow their communities as well as create an environment that improves the competitiveness of local businesses and maximizes job opportunities.

The MCC has been informed by industry stakeholders that the CRTC’s decision affecting Canada’s Internet reseller regime could adversely affect the expansion of broadband Internet to rural, remote, and northern communities and increase the digital divide that currently exists between urban and rural Canada. In particular, Manitobans currently experience the second- slowest Internet speeds in Canada.

Additionally, industry stakeholders have indicated the decision could cause Canada to fall behind other countries in terms of broadband speed, which will affect the ability of our members to create linkages with an increasingly global and digital economy. The MCC encourages the Cabinet direct the CRTC to reconsider its decision by:

• Applying a rural lens to the decision to ensure that the new wholesale rates set by the CRTC will not adversely impact investment by network owners in the expansion of networks in rural and remote communities to ensure Canada meets our ambitious broadband targets.

• Applying an economic development lens to the decision to ensure that revised wholesale rates do not adversely impact investments required to keep Canada in the top 10 internet speeds on world indices.

Access to high-speed Internet is critically important for Canada’s economic and social well- being and it is critical that the CRTC gets this decision right and Internet providers maximize investments in local communities.

Thank you for your attention to this matter.

Sincerely,

Chuck Davidson President & CEO Manitoba Chambers of Commerce

20 Rockport Drive Riverview, N.B. E1B 5L5 www.nbbc-cenb.ca

Wes Armour Armour Transportation

February 13, 2020 Sébastien Dupuis Assomption Vie

Director General Michael Wilson Atlantic Industries Ltd Telecommunications and Internet Policy Branch Innovation, Science and Economic Development Canada Brent Scrimshaw th Atlantic Lottery Corporation 235 Queen Street, 10 Floor Lee Corey, Chair of the Council Ottawa, Ontario K1A 0H5 Corey Nutrition Filed electronically: [email protected] Blair Hyslop, Mrs. Dunster’s, WMI Member

Mike Timani Re: Canada Gazette, Part I, December 14, 2019, Volume 153, Number 10: Notice Fancy Pokket

No. TIPB-002-2019 — Petitions to the Governor in Council concerning Telecom Bryana Ganong Ganong Bros. Ltd Order CRTC 2019-288 Allain Bossé Groupe Savoie Ltd

On behalf of the Members of the New Brunswick Business Council, a group of Normand Caissie Imperial Manufacturing Group non-partisan CEO’s that are deeply committed to the economic and social Barry Kyle Industrial Rubber development of our province, the Council would like to ask the Government of Francis McGuire Canada to reexamine an August 2019 order by the CRTC cited above. Emeritus Member

Terry Malley Malley Industries The Business Council is seriously concerned that this order by the CRTC puts Gerry Pond & Curtis Howe broadband investment in rural New Brunswick at risk by dramatically reducing Mariner Partners wholesale rates for Internet resellers by 80% in the short term. The Business Bernard Lord Medavie Blue Cross Council encourages a review of rates that would set to an appropriate level over Allison McCain time to promote competition in the industry while preserving investment levels McCain Foods Ltd

Gaetan Thomas in rural communities. NB Power

Denis Caron Port of Belledune Over the past several years, rural areas of New Brunswick have experienced Andrea Feunekes closure of several large employers in more traditional industries. As a result, Remsoft these communities are working collaboratively with local and provincial Bruno Lagacé st Sparta Manufacturing governments to reinvigorate their economies for the 21 century with new skills, Ronald Losier new industries and new ways to reach global customers. St. Isidore Asphalt Ltd

Gordie Lavoie Sunny Corner Enterprises Without access to broadband infrastructure investment made by providers like Geoff Flood Bell, the ability to diversify their economies is placed in serious jeopardy. In the T4G

Jacques-Paul Couturier Université de Moncton

Dr. Paul Mazerolle University of New Brunswick last year alone, Bell invested $65 Million in New Brunswick and it is critical that investments in new innovations like 5G networks that will support smaller communities like those in Atlantic Canada to participate and benefit from opportunities in the digital economy.

Major companies like Bell, Telus and Canada’s five major cable companies, EastLink, Cogeco, Rogers, Shaw and Vidéotron are community builders and investors that are committed to the health of rural Canada. They should be encouraged to continue to invest in Canada to our collective benefit. Perhaps a consideration for the CRTC would be to ensure that a minimum investment is made, by region, to ensure that critical investments are actually made by the major telecommunications companies as part of their capital infrastructure spending. Internet resellers do not build networks and create local employment that benefits the growth and livelihood of those living in rural Canada.

As a Council, we believe strongly that the Canadian government should review the dramatic rate cuts and set an appropriate rate level that balance the need for a competitive playing field while preserving much needed investment in rural communities. Attracting large private investments in rural communities is a challenge and there is never enough government funding to fully address rural priorities. Better broadband is a catalyst for economic development and the CRTC’s order, if left unchanged, will negatively impact the ability of many smaller Canadian municipalities and rural areas to grow and succeed.

Sincerely,

Adrienne L. O’Pray President and CEO

CC: The Hon. Navdeep Bains, PC, MP, Minister of Innovation, Science and Economic Development [email protected] The Hon. René Arseneault, Madawaska-Restigouche [email protected] The Hon. Richard Bragdon, Tobique-Mactaquac [email protected] The Hon. Serge Cormier, Acadie- Bathurst [email protected] The Hon. Pat Finnigan, Miramichi-Grand Lake [email protected] The Hon. Dominic LeBlanc, Beausejour [email protected] The Hon. John Williamson, New Brunswick Southwest [email protected]

February 3, 2020

Director General Telecommunications and Internet Policy Branch Innovation, Science and Economic Development Canada 235 Queen Street, 10th Floor, Ottawa, Ontario K1A 0H5

RE: Canada Gazette, Part I, December 14, 2019, Volume 153, Number 10: Notice No. TIPB- 002-2019 — Petitions to the Governor in Council concerning Telecom Order CRTC 2019-288

Dear Director General, In August 2019, the Canadian Radio-television and Telecommunications Commission (CRTC) reduced the wholesale rates Internet resellers pay to use the networks of facilities-based carriers (Telecom Order CRTC 2019-288). On behalf of Ontario’s business community, the Ontario Chamber of Commerce (OCC) would like to express concern about the impact this will have on economic development in our province. Access to high-speed internet services is a basic infrastructure requirement in today’s economy. Communities rely on high-speed connectivity to attract businesses and workers, innovate, connect to supply chain networks, and engage with the rest of the world. The new wholesale rates ordered by the CRTC are considerably lower than those applied since 2016 and will require facilities-based carriers to offer broadband access to resellers at rates that are in many cases below the carriers’ costs, effectively forcing them to incur a negative rate of return. Historically, the CRTC has strived to set wholesale rates that achieve a balance between incentivizing investments from network builders and enabling resellers to offer competitive retail prices to consumers. As a result, industry has made significant progress in improving the access and affordability of high-speed internet. Over the past five years, facilities-based providers have invested over $41 billion in network infrastructure. Internet access prices in Canada have remained essentially stable since 2014,1 while Canadians consumed 33 percent more internet usage over the same period and purchased 53 percent higher internet speeds each year.2

1 Statistics Canada. 2019. “Consumer Price Index - Household Operations, furnishings and equipment.” https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=1810000405. 2 CRTC 2019 Communications Monitoring Report figure 9.5 and 9.6 https://open.canada.ca/data/dataset/8a80c08b- ba7e-4a72-869e-f7fcdc6eb6e3/resource/2f5a5a87-599a-4c25-b7bb-5c4527b8e32a/download/open-data-retail-fixed- internet-sector-and-broadband-availability.xlsx

Ontario Chamber of Commerce | 180 Dundas Street West, Suite 2105, Toronto, ON M5G 1Z8 (416) 482-5222 | occ.ca | @OntarioCofC

The CRTC’s recent order fails to strike this important balance and will force Canada’s major network providers to reduce their investments in broadband networks, especially in rural regions. In fact, many have already announced reductions to their planned investments. The timing is concerning, as the digital economy is growing rapidly and industry is poised to make large capital investments in rural broadband and next-generation (5G) wireless networks. The OCC urges the Government of Canada to refer Telecom Order CRTC 2019-288 back to the CRTC for reconsideration of wholesale rates. Final rates should promote the government’s key public policy objectives: affordability, competition, investment, innovation, and the expansion of high-speed internet access across rural, remote, and Indigenous communities. Further, new wholesale rates should only be applicable on a forward-looking basis. The CRTC’s decision to apply its new rates retroactively to 2016 forces carries to make more than $325 million in retroactive payments to resellers. This unfairly penalizes carriers for using rates that were authorized by the CRTC. We welcome the opportunity to discuss the issue further.

Sincerely,

Rocco Rossi President and CEO Ontario Chamber of Commerce

CC: Hon. Navdeep Bains – Minister of Innovation, Science and Industry, Government of Canada Hon. Maryam Monsef – Minister for Women and Gender Equality and Rural Economic Development, Government of Canada Hon. Victor Fedeli – Minister of Economic Development, Job Creation and Trade, Government of Ontario Hon. Laurie Scott – Minister of Infrastructure, Government of Ontario Hon. Perrin Beatty – President and CEO, Canadian Chamber of Commerce

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February 13, 2020

Patricia Brady Director General, Telecommunications and Internet Policy Branch Innovation, Science and Economic Development Canada 235 Queen Street Ottawa, Ontario K1A 0H5

Submitted via email: [email protected]

Dear Ms. Brady,

RE: Canada Gazette, Part 1, December 14, 2019, Petitions to the Governor in Council concerning Telecom Order CRTC 2019-288 (Notice No. TIPB-002-2019)

I am writing on behalf of the Toronto Region Board of Trade’s (the Board), 13,500 members. As an organization whose mission is to make this region one of the most competitive and sought-after regions in the world, we are concerned that the recent decision taken to establish new wholesale rates for the owners of telecommunications network infrastructure may have unintended consequences that will have long-term negative impacts.

Having reviewed the recent decision by the Canadian Radio-Television and Telecommunications Commission (CRTC), the petition to the Federal Cabinet filed jointly by the cable companies (Eastlink, Cogeco, Rogers, Shaw and Videotron), and the separate petitions from Bell Canada and Telus Communications, we are writing to ask that Cabinet direct the CRTC to revisit its decision.

The network owners have raised serious concerns in their petitions, and we believe that those concerns need to be addressed by the CRTC. The Board is concerned that this decision could cause Canada to fall behind other countries in terms of broadband speed, which will affect the ability of our members to compete in an increasingly global and digital economy. In a time of communications transformation, where significant and ongoing investment will be needed to build the scale of infrastructure required to deploy new communications technologies such as 5G across Canada, actions which undermine the ability to build that infrastructure will indeed result in placing Canada in a disadvantageous situation and will undermine our competitiveness globally.

The Board is requesting that Cabinet exercises its power under section 12 of the Telecommunications Act to direct the CRTC to reconsider its decision. We respectfully request that the CRTC take an economic development lens to the decision to ensure that revised wholesale rates do not adversely impact investments required to keep Canada in the top ten internet speeds on world indices. If Canada is to continue to be an innovative, competitive and inclusive country, we must have access to high-speed

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internet. Any change that jeopardizes the investments that need to be made ensure competition, investment, innovation and expansion to rural, remote and Indigenous communities should be revisited so that the decisions taken are in the best interests of individuals, businesses and the country as a whole.

Sincerely,

Jan De Silva President & CEO