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January 11, 2019 Ms. Janet Yale Chair the Broadcasting And TELUS Floor 8, 215 Slater St. Ottawa, Ontario Canada K1P 0A6 www.telus.com Johanne Senécal (613) 597-8400 Telephone Senior Vice-President (613) 597-8422 Facsimile Government & Regulatory Affairs [email protected] January 11, 2019 Ms. Janet Yale Chair The Broadcasting and Telecommunications Legislative Review Panel c/o Innovation, Science and Economic Development Canada 235 Queen Street, 1st Floor Ottawa, ON K1A 0H5 Dear Ms. Yale: Re: Review of the Canadian Communications Legislative Framework – Submission of TELUS Communications Inc. 1. TELUS Communications Inc. (“TELUS”) is pleased to provide its submission to the Broadcasting and Telecommunications Legislative Review Panel (the “Panel”) in response to the issues raised in the Panel’s call for comments issued on September 25, 2018. 2. We trust that this submission will be of assistance to the Panel in formulating its recommendations to the Government of Canada. 3. TELUS wishes to express its appreciation to the Panel for the opportunity to provide these comments. Yours truly, {Original signed by Johanne Senécal} Johanne Senécal Senior Vice-President Government & Regulatory Affairs AH/io cc. James Nicholson, Executive Director, Broadcasting and Telecommunications Legislative Review Panel Secretariat Attachments Broadcasting and Telecommunications Legislative Review Panel Review of the Canadian Communications Legislative Framework Submission of TELUS Communications Inc. January 11, 2019 TELUS Communications Inc. Review of the Canadian January 11, 2019 Communications Legislative Framework Table of Contents 1.0 Introduction and Executive Summary ................................................................................. 1 1.1. Recommendations for legislative reform ......................................................................... 1 1.2. What can and should be addressed prior to full legislative reform .................................. 8 2.0 Theme A – Reducing Barriers to Access By All Canadians to Advanced Telecommunications Networks .................................................................................................... 10 2.1. Introduction .................................................................................................................... 10 2.2. Government Policy Should Prioritize Competition and Investment .............................. 12 2.3. Promoting Facilities-Based Competition Drives Investment and Innovation ................ 15 2.4. Canadian Telecommunications Services Are Affordable and Compare Favourably to Other Jurisdictions .................................................................................................................... 18 International Comparison of Wireline Prices ......................................................... 18 International Comparison Wireless Prices .............................................................. 19 The Cost of Providing Services in Canada Is High ................................................ 19 Price Is Not a Standalone Barrier to Broadband Adoption ..................................... 22 Affordability for Lower-Income Canadians Should Be Addressed as a Matter of Broader Social Policy ........................................................................................................... 23 2.5. Legislation Should Promote Investment By Providing Greater Flexibility for Foreign Investment ................................................................................................................................. 24 2.6. The Telecommunications Act and Radiocommunication Act Should Be Amended to Facilitate the Deployment of Wireline and Wireless Networks ............................................... 27 3.0 Theme B – Supporting creation, production and discoverability of Canadian content ..... 33 3.1. New Definitions and Concepts Are Needed to Make a Revised Broadcasting Act Applicable to the Global Digital Programming Marketplace ................................................... 35 What Is “Broadcasting” .......................................................................................... 35 i TELUS Communications Inc. Review of the Canadian January 11, 2019 Communications Legislative Framework A New Terminology Focusing on “Programming Services” and “Content Aggregators” ......................................................................................................................... 37 Other Concepts Which Should Be Updated or Deleted from a New Broadcasting Act ................................................................................................................................. 41 Recommended Legislative Changes to the Definitions of the Broadcasting Act ... 42 3.2. Redefining the “Elements” of the Canadian Broadcasting System................................ 44 The “Private” and “Public” Elements Continue to be Relevant Today and in the Future ................................................................................................................................. 46 The “Community” Element Is No Longer Necessary, Nor Sustainable ................. 46 A “Foreign” Element to the Broadcasting System Is Missing in the Act ............... 51 3.3. Different Policy Objectives Should Apply to Each Element of Canada’s Broadcasting System ....................................................................................................................................... 52 Objectives That Should Apply to Private Programming Services .......................... 52 Objectives That Should Apply to Private Content Aggregators ............................. 55 Objectives That Should Apply to the “Public” Element of the Broadcasting System ................................................................................................................................. 60 Applying New Objectives to the “Foreign” Element of the Canadian Broadcasting System ................................................................................................................................. 65 Recommendation for Legislative Change to the Broadcasting Policy Objectives . 69 3.4. Addressing Vertical Integration in the Domestic Market .............................................. 72 Vertical Integration Creates Negative Incentives Which May Hamper the Achievement of Objectives of the Broadcasting Act ............................................................ 76 Measures Are Needed to Address Vertical Integration in the Canadian Broadcasting System ................................................................................................................................. 81 3.5. Calls to Shift the Burden of Funding Canadian Content to Telecommunications Providers Should Be Rejected ................................................................................................................... 91 ii TELUS Communications Inc. Review of the Canadian January 11, 2019 Communications Legislative Framework An ISP Tax Would Hinder Network Investments .................................................. 92 An ISP Tax Would Hurt Canadian Consumers ...................................................... 95 There is No Compelling Policy Rationale for Taxing ISPs .................................... 97 4.0 Theme C – Improving the Rights of the Digital Consumer ............................................... 99 4.1. Enhancing Digital Literacy Is the Greatest Opportunity to Promote Participation in the Digital Economy ....................................................................................................................... 99 4.2. No Legislative Changes Are Required to Address Consumer Protection .................... 101 4.3. No Legislative Changes Required to Address Accessibility ........................................ 101 4.4. No Legislative Changes Required to Address Privacy ................................................ 102 4.5. No Legislative Changes Are Required to Address Net Neutrality............................... 103 Context of the Public Discussion on Net Neutrality ............................................. 103 There Is No Need for a Net Neutrality Amendment ............................................. 105 The CRTC Should Provide a More Flexible Net Neutrality Framework Using its Existing Powers Under the Telecommunications Act ........................................................ 106 4.6. Additional Provisions Are Required to Protect Carriers from Liability in Light of Their Neutral Position with Respect to Content ............................................................................... 109 Limitations of Liability in Carrier Terms of Service of Limited Application ...... 110 Recommendations for Legislative Changes .......................................................... 112 Recommended Legislative Changes ..................................................................... 113 4.7. Addressing the Proliferation of False or Misleading Information ............................... 113 5.0 Theme D – Renewing the Institutional Framework for the Communications Sector ...... 115 5.1. The Telecom Policy Objectives Should Be Amended to Emphasize Competition, Innovation, Investment, and Timely Deployment of Facilities .............................................. 115 Historical Overview of Canadian Telecommunications Policy Objectives and the Need for Reform. ................................................................................................................ 116 iii TELUS Communications Inc. Review
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