NetNews Usenet Archive 1993 #1/NN_1993_1.iso/spool/comp/dcom/telecom/12906

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From: [e-mail] (Dave Leibold)
Newsgroups: comp.dcom.telecom
Subject: CRTC Review of Telecom Regs
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Date: 8 Jan 93 04:49:48 GMT
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X-Telecom-Digest: Volume 13, Issue 11, Message 3 of 4

[from Canadian Radio-Television and Telecommunications Commission (CRTC)
press release]

December 16, 1992

CRTC TO REVIEW TELECOMMUNICATIONS REGULATORY FRAMEWORK

OTTAWA/HULL - The CRTC today announced that it intends to review the
approach it takes to regulating telephone companies that provide basic
local telephone service in order to ensure that the manner in which it
regulates is efficient, effective and in the public interest (Telecom
Public Notice CRTC 92-78).

In recent years, technological change and increasing competition have
significantly altered the nature of the telephone industry. The
Commission wants to examine whether or not there are more efficient
and effective ways to regulate or to streamline regulation, without
compromising basic regulatory goals such as affordable local service
and prevention of anti-competitive behaviour.

"Canadians currently enjoy the benefits of a first-class
telecommunications industry," said CRTC Chairman Keith Spicer. "By
undertaking a review of our regulatory procedures we are trying to
ensure that the Canadian telecommunications industry remains at the
forefront of international communications and continues to provide
top-quality service, local as well as long distance, to meet the
growing information requirements of residential and business users."

Since telephone companies have evolved into multi-dimensional service
providers subject to increasing competition, questions arise about the
continued appropriateness of traditional monopoly-style regulation.
However, the Commission considers that regulatory streamlining will
depend in part on the degree of effective competition in the markets
served by the telephone companies. While some markets may be
increasingly competitive, Canada's telephone companies continue to
exercise considerable market power due to their control over access to
local telephone systems and their dominance in the long distance
telephone market. Where telephone companies exercise market power,
regulation will be required to protect subscribers and industry
competitors from any abuse of that power.

"While the Commission is committed to considering changes to the
current framework, in pursuit of regulation that is more effective and
more efficient, the resulting framework must ensure that subscribers
and competitors are adequately protected," said Louis (Bud) Sherman,
CRTC Vice-Chairman for Telecommunications. "Changes must take account
of any monopoly or dominant power the telephone companies could
exercise."

Having raised these general issues, the Commission invites the
telephone companies and other interested parties to submit comments
and specific proposals for changing the existing regulatory framework.
Submissions should bee aimed at achieving the following goals:

* reduction of the regulatory burden where there is already effective
competition in place;

* encouragement of the development of new technology and innovative
services to serve the expanding information requirements of
residential and business customers;

* protection of subscribers and competitors from abuse of market power;

* equitable treatment of subscribers in terms of service and prices;

* the opportunity for telephone companies to earn a reasonable rate
of return; and,

* a recognition that the telephone companies and other telecommunica-
tion carriers must be permitted to equip themselves to meet increasing
competition at home and abroad.

During the course of the review proceeding, the Commission anticipates
receiving proposals to:

* streamline or eliminate regulatory requirements in light of changes
in industry structure;

* reduce the size of local service subsidies by, among other things,
new types of local services to generate increases in local service
revenues and encouraging investment to reduce costs;

* change the current system of allocating the subsidy to ensure that it is
equitably distributed among subscribers; and,

* examine alternatives to the Commission's existing rate base rate of
return approach to regulation of the telephone companies that may
better balance the interests of subscribers and competitors, while
maximizing the operating efficiency of the companies.

Parties wishing to participate in this proceeding must notify the
Commission of their intention to do so by writing to the Secretary
General, CRTC, Ottawa,Ontario, K1A 0N2, by March 15, 1993. Submissions
to this proceeding must be filed with the Commission by April 12,
1993. The Commission will convene and oral public hearing, scheduled
to commence on November 1, 1993, in connection with this proceeding.

                          - 30 -

Contact:  Bill Allen, Director
          CRTC Public Affairs, Ottawa, Ontario K1A 0N2
          [phone] - TDD [phone] - Fax [phone]

or one of our regional offices listed below:
          Halifax, Nova Scotia - [phone] - TDD [phone]
          Montreal, Quebec - [phone] - TDD [phone]
          Winnipeg, Manitoba - [phone] - TDD [phone]
          Vancouver, British Columbia - [phone] - TDD [phone]

or from the Department of Communications Regional Office:
          Toronto, Ontario - [phone]


Dave Leibold - via FidoNet node 1:250/98
INTERNET: [e-mail]