A Look Forward at Telecommunications Regulation in Canada
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1 A Look Forward at Telecommunications Regulation in Canada Ian Scott Chief Policy Advisor to the Chairman Canadian Radio-television and Telecommunications Commission
2 Drivers of Future Regulation Change Technological and consumer demand Competition Multiple wireline and wireless broadband suppliers Convergence Technological, business and regulatory 2
3 Competition in Canada Canadian market characterized by multiple wireline and wireless providers Ubiquitous presence of cable a distinguishing feature of the Canadian market Penetration Rates (Percent of households) Telephone Penetration Rates Broadband Availability 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% Land-line VoIP/Cable Wireless Total 0% DSL Cable Total Sources: Statistics Canada Sources: CRTC Data Collection 3
4 Technological Convergence Vertical to Horizontal Existing (Silo) Vertically Integrated Services User Interface Application Session End Points Source: Telus PCS DO CONSUMER ENTERPRISE DSL FIXED 4
5 Vertical to Horizontal Existing (Silo) Service Vertically Integrated Network Services IMS and communication enablers Multi access edge Fixed access Mobile access Transport Network 5
6 Business Convergence Canadian Communications (Solar System) Relative Revenues and Market Position 100% TELUS MTS Allstream BCE Rogers industry average 50/50 Incumbent telephone companies (ILECs) mainly operate in telecom sector with limited broadcasting forays via Express Vu, MTS TV and TELUS TV Telecom revenue share.. Shaw Quebecor Cogeco CanWest Astral Corus Broadcasting (inc BDU) revenue share 100% size of bubble denotes total revenues Cable BDUs operate in broadcasting with Rogers a major player in wireless and all major cable BDUs now providing cable telephony Broadcasting companies have generally moved into media and publishing 6
7 Business Convergence Traditional Carriage Providers Moving into Content Telus 100% MTS Entities on the diagonal indicate revenues from carriage (telecom vs BD). Telecom revenue share.. Rogers BCE Quebecor relative content revenues Cogeco Shaw Relative convergence into content provision is shown by the distance from the diagonal Revenues from content ie. programming/publishing Quebecor Media 29% Rogers 17% Cogeco 13% BD revenue share size of bubble denotes total revenues 100% Traditional content providers have no carriage revenues 7
8 Regulatory Issues (in a converging industry) Corporate Technology Customers Content Supplier Content Supplier Carriage Co. Carriage Co. NETWORK Wireless Satellite Cable Internet PSTN IP SERVICE Video Audio Voice Data Customer demand characterized by: Ability to buy the service you want, when you want (incl. bundles), using the device of your choice. Mergers and integration. e.g. Rogers/Sprint CTV/Chum Canwest Global/ - Alliance Atlantis CORPORATE Diversity of Voices Canadian Content Production (New Media Issues) Market structure TECHNOLOGY Broadcast Act & New Media Net Neutrality Broadband Deployment Basic Service Obligation Spectrum Management WHOLESALE CUSTOMER Essential Services Support Structures & Right of way Regulatory Symmetry QoS Spectrum issues Net neutrality RETAIL CUSTOMER Open access for devices Unwanted calling (ex. Spam, DNCL) Privacy QoS Affordability Accessibility Net neutrality 8
9 Future Trends in Regulation Focus continuing to shift from retail to wholesale Consumer safeguards rather than detailed regulation Continuing shift from ex ante to ex post New regulatory tools - AMPs Increase in the use of alternate dispute resolution mechanisms some changes required Need for converged processes and legislative reforms 9
10 Thank you..questions?
11 Convergence/New Media Common Applications and Their Bandwidth Requirements Current 3G Current Broadband Future Application Type Files Streaming Real-Time VoIP Internet Radio 2.5G Gaming Small Software Download Web Video Music Download Video Conferencing Movie Rental Software Download Video Download HD Movie Rental HD-Video Download Required Bandwidth in Mbps 11
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