8.24(1)(a) s.24(1)(b) Industry Committee Study on Recent Decisions of the CRTC concerning the Billing Practices of Internet Service Providers 000001s.21(1)(a) s.21(1)(b) SECRET INFORMATION FOR THE DEPUTY MINISTER cee, Senior Associate Deputy Minister RTC deci on usage-based Internet billing ISSUE BACKGROUND UBB allows Intemet service providers (ISPs) to charge customers for exceeding the monthly usage of data permitted with their broadband Internet package. UBB, along with other forms of traffic management, lets ISPs control the growth in Internet traffic which causes congestion on their network. The Canadian Radio-television and Telecommunications Commission (CRTC) has put in place a framework to guide sevice providers in managing Internet traffic, and has ruled that economic measures, such as UBB, are preferable to technical measures such as bandwidth throttling. However, network investment remains an ntegral component of addressing congestion, Bell began introducing UBB for its retail Internet customers in February 2007. In March 2009 Bell filed an application with the CRTC to implement UBB for its wholesale customers, who lease part of Bell’s network in order to provide their own retail Internet products. The CRTC approved Bell’s request in a May 2010 decision and then later reaffirmed its approval in an October 2010 decision. The CRTC’s most recent UBB decision of January 25, 2011 set wholesale UBB rates at a 15 percent discount relative to retail UBB rates. CCM 123456 wd ‘000003s.24(1)(a) s.21(1)(b) oF SECRET CONSIDERATIONS NEXT STEPS Department officials will continue to monitor the issue and report on new developments. CCM 123456 ‘00004-3- SECRET Marta Morgan John Connell Assistant Deputy Minister Associate Assistant Deputy Minister ce. John Connell cc. Marta Morgan Contact: Pamela Miller, Director General, Telecommunications Policy (990-4241) CCM 123456 ‘0000058.21(1)(a) 8.21(1)(b) SECRET INFORMATION FOR THE DEPUTY MINISTER ce. Senior Associate Deputy Minister CRTC decisions on usage-based Internet billing ISSUE BACKGROUND In 2009, the Canadian Radio-television and Telecommunications Commission (CRTC) established a framework to guide Internet service providers (ISPs) in managing Internet traffic. The CRTC ruled that network investment remains an integral component of addressing network congestion. The CRTC further determined that economic measures, such as UBB, are preferable to technical measures such as throttling speeds. UBB allows Intemet service providers (ISPs) to charge customers for exceeding the monthly usage of data permitted with their broadband Internet package. Bell began introducing UBB for its retail Internet customers in February 2007. In March 2009 Bell filed an application with the CRTC to implement UBB for its wholesale customers, who lease part of Bell's network in order to provide their own retail Internet products. The CRTC approved Bell’s request in a May 2010 decision and then later reaffirmed its approval in an October 2010 decision. The CRTC’s most recent UBB decision of January 25, 2011 set wholesale UBB rates at a 15 percent discount relative to retail UBB rates. CCM 214273 wd, ‘000006s.21(1)(a) 8.24(1)(b) SECRET CONSIDERATIONS NEXT STEPS Marta Morgan John Connell Assistant Deputy Minister Associate Assistant Deputy Minister ce, John Connell ce, Marta Morgan Contact: Pamela Miller, Director General, Telecommunications Policy (990-4241) CCM 214273 000007.21(1)(b) ‘Security sifaiion «SCRE COM Namber co Contact Pamela Miler, SPSDGTR, 61598-4242 | | Relion Required? For atarmation | ADVICE TO THE MINIS! The following note provides background, considerations and speaking notes for your meeting with CRTC Chair Konrad von Finckenstein on Thursday, BACKGROUND The CRTC’s decision to approve usage based billing (UBB) on a wholesale basis has triggered a wide sweeping reaction from Canadians. Many consumers, who are irate with the concept of metered intemet usage in general, consider that the CRTC’s ruling will foreclose the remaining unmetered internet option at the expense of innovation and creativity. Small ISPs consider that the UBB ruling forces them to adopt metered billing practices and dramatically limits their abilities to compete and innovate. On the other hand, network providers argue that UBB is needed to alleviate network congestion caused by the explosive growth in internet traffic. They also contend that end users of wholesale-based ISPs generate a disproportionate amount of traffic. In Canada, UBB has for some time been a feature of retail internet service plans, which are not regulated. In 2006 Bell Canada introduced UBB at the retail level for new residential customers. In 2009 it applied to the CRTC to introduce UBB for its wholesale services which operate largely over the same network as its retail services. It is of the view that wholesale UBB is needed to stem congestion, is non-discriminatory since is applied to its own retail customers and is competitively equitable since cablecos have imposed UBB on a wholesale basis, since 2006, In a series of three key decisions, the CRTC approved Bell’s proposal. The CRTC’s most recent decision of January 25, 2011, set wholesale UBB rates at a 15 percent discount relative to corresponding retail rates with a March 1, 2011 implementation. (see Annex A for an overview of the decisions). In his February 2, 2011 appearance before the Industry Committee, the CRTC Chair announced that the CRTC will be reviewing its UBB determinations and that the March 1, 2011 implementation date will be deferred. | CCM 214662 ‘000008s.24(1)(a) 8.21(1)(b) SECRET CONSIDERATIONS The CRTC was established by Parliament as an independent quasi-judicial tribunal ADVICE Speaking points are attached. (Annex B) Richard Dice Simon Kennedy Deputy Minister Senior Associate Deputy Minister ce. Simon Kennedy ©. Richard Dicer Attachments Contact: Pamela Miller, Telecom Policy, 613-998-4242 CCM 214662 ‘000009$.21(1)(b) (Secretion Meeting on Usage Based Billing with CRTC Chair Konrad von Finckenstein ISSUE ‘The following note provides background, considerations and speaking notes for your meeting with CRTC Chair Konrad von Finckenstein on Thursday, BACKGROUND ‘The CRTC’s decision to approve usage based billing (UBB) on a wholesale basis has triggered a wide sweeping reaction from Canadians. Many consumers, who are irate with the concept of metered internet usage in general, consider that the CRTC’ ruling will foreclose the remaining unmetered internet option at the expense of innovation and creativity. Small ISPs consider that the UBB ruling forces them to adopt metered billing practices and dramatically limits their abilities to compete and innovate. On the other hand, network providers argue that UBB is needed to alleviate network congestion caused by the explosive growth in intemet traffic. They also contend that end users of wholesale-based ISPs generate a disproportionate amount of traffic In Canada, UBB has for some time been a feature of retail internet service plans, which are not regulated, In 2006 Bell Canada introduced UBB at the retail level for new residential customers. In 2009 it applied to the CRTC to introduce UBB for its wholesale services which operate largely over the same network as its retail services. Bc is of the view that wholesale UBB is needed to stem congestion, is non-discriminatory since itis applied to its own retail customers, and is competitively equitable since cablecos have imposed UBB on a wholesale basis since 2006. In a series of three key decisions, the CRTC approved Bell's proposal. The CRTC’s most recent decision of January 25, 2011, set wholesale UBB rates at a 15 percent discount relative to corresponding retail rates with a ‘March 1, 2011 implementation. (see Annex A for an overview of the decisions). In his February 2, 2011 appearance before the Industry Committee, the CRTC Chair announced that the CRTC will be reviewing its UBB determinations | and that the March 1, 2011 implementation date will be deferred. ‘The CRTC 2 CCM 214662 00010 [Coa Namber ase ‘ator Regula Fer iaration8.24(1)(a) remain capable of pro CONSIDERATIONS 8.21(1)(b) e\ and inviting comme how to implement two principles: 1) that low data users should not subsidise high data users: and 2) that small ISPs ee) ADVICE Speaking points are attached. (Annex,C) Richard Dicerni Deputy Minister Simon Kennedy The CRITC was established by Parliament as an independent quasi-judicial tribunal ‘Simon Kennedy Senior Associate Deputy Minister ‘cc. Richard Dicemi CCM 214662 000011SECRET Attachments, Contaet: Pamela Miller, Telecom Pol -y, 613-998-4242 CCM 214662 0000128.21(1){a) 8.21(1\{b) Soeur daa [CON Nemier ee ‘Contact? Pamela Miller, SPS-DGTP, GEESE | ‘Action Required “For information ADVICE TO THE MINI Meeting on Usage Based Billing with CRTC Chair Konrad von Finckenstein ISSUE The following note provides background and speaking notes for your ‘meeting with Canadian Radio-Television and Telecommunications Commission (CRTC) Chair Konrad von BACKGROUND The Internet access market is dominated by the incumbent telcos and cablecos (e.g. Bell, TELUS, MTS, Rogers, Shaw, Videotron,) who directly serve 94 percent of Canada’s nine million residential high-speed customers. The incumbents are also required by regulation to sell internet services at wholesale prices to small internet service providers (ISPs) who use these services to serve their own clients, the other six percent of customers. As the owner of the largest telcos network, Bell serves the largest number of wholesale customers (300,000 of its three million broadband lines). For a variety of technical and regulatory reasons, small ISPs have only rarely bought wholesale services from the cablecos. In Canada, usage based billing (UBB) has for some time been a feature of retail internet service plans, which are not regulated. In 2006 Bell Canada introduced UBB at the retail level for new residential customers. In 2009 it applied to the CRTC to introduce UBB for its wholesale services. In a series of three key decisions, the CRTC approved Bell's proposal. (See Annex A for an overview of the decisions). 2 CCM 214662 000013,CONSIDERATIONS The CRTC posted a notice on February 8, 2011 effectively suspending wholesale UBB while it reviews the issue (See Annex B for a summary). Parties have been asked to comment on how the CRTC should implement two principles: 1) Low data users should not subsidise high data users; and 2) Small ISPs must remain capable of providing choice to consumers. 3) CCM 214662 00014 8.21(1)(a) 8.24(1)(b)8.21(1)(a) 8.21(1)(b) SECRET ‘The CRTC was established by Parliament as an independent quasi-judicial tribunal. ADVICE Speaking points are attached as Annex C. Richard Dicerni Simon Kennedy Deputy Minister Senior Associate Deputy Minister cc. Simon Kennedy ¢, Richard Dicer Attachments Contact: Pamela Miller, Director General Telecom Policy, 613-998-4242 CCM 214662 000015Regulatory Decisions Concerning Wholesale and Usage Based Billing (UBB) August 2009: Telecom Order CRTC 2009-484, Bell Alliant Regional Communications, Limited Partnership and Bell Canada — Applications to introduce usage-based billing and other changes to Gateway Access Service - interim approval of usage-based billing and two need speed options for Bell’s primary wholesale internet service (Gateway Access Service) - implementation issues to be determined October 2009: Telecom Regulatory Policy 2009-657, Review of Internet traffic ‘management practices of Internet service providers = framework for assessing internet traffic management practices (ITMPs) - network investment is a fundamental tool to deal with congestion - economic practices are the most transparent ITMPs - where ITMPs are employed, they must be designed to address a defined need, and nothing more May 2010: Telecom Decision 2010-255, Bell Alliant Regional Communications, Limited Partnership and Bell Canada — Applications to introduce usage-based billing and other changes to Gateway Access Service = final approval to UBB rates and implementation conditions (e.g. Bell must convert all retail customers to UBB prior to applying wholesale UBB) August 2010: Telecom Regulatory Policy 2010-632 - Wholesale high-speed access services proceeding ~ response to the Governor in Council directive to reconsider speed matching for wholesale services focussing on investment, competition and telco/cableco equity - concluded wholesale access to higher speeds possible via telco fibre investments needed to support competition and modifications to cable wholesale intemet service to facilitate competition = public process to set rates for telco/cableco new higher speed wholesale services October 2010: Telecom Decision 2010-802, Bell Alliant Regional Communications, Limited Partnership and Bell Canada ~ Application to review and vary Telecom Decision 2010-255 concerning usage-based billing for Gateway Access Service = adopted some Bell’s proposals to modify implementation details, UBB rates deferred October 2010: Telecom Notice of Consultation 2010-803, Usage-based billing for Gateway Access Services and third-party Internet Access services - should telco and cableco wholesale UBB rates should be discounted January 2011: Telecom Decision 2011-44, Usage-based billing for Gateway Access Services and third-party Internet Access services - set wholesale UBB rates at a 15% discount from retail, March 1, 2011 implementation 00016ANNEX A. SECRET Regulatory Decisions Concerning Wholesale and Usage Based Billing (UBB) August 2009: Telecom Order CRTC 2009-484 = interim approval of usage-based billing and two need speed options for Bell's primary wholesale internet service (Gateway Access Service) - implementation issues to be determined October 2009: Telecom Regulatory Policy 2009-657 ~ framework for assessing internet traffic management practices (ITMPs) - network investment is a fundamental tool to deal with congestion - economic practices are the most transparent ITMPs - where ITMPs are employed, they must be designed to address a defined need, and nothing more May 2010: Telecom Decision 2010-255 = final approval to UBB rates and implementation-conditions (e.g. Bell must convert all retail customers to UBB prior to applying wholesale UBB) August 2010: Telecom Regulatory Policy 2010-632 = response to the Governor in Council directive to reconsider speed matching for wholesale services focussing on investment, competition and telco/cableco equity - concluded wholesale access to higher speeds possible via telco fibre investments needed to support competition and modifications needed to cable wholesale internet service to facilitate competition - public process to set rates for telco and cableco new higher speed wholesale services, decision pending October 2010: Telecom Decision 2010-802 - adopted some of Bell’s proposals to modify implementation details, UBB rates deferred January 2011: Telecom Decision 2011-44 = set wholesale UBB rates at a 15% discount from retail, March 1, 2011 implementation 000017ANNEX B SECRET CRTC launches review of billing practices for wholesale Internet services Telecom Notice of Consultation CRTC 2011-77 On February 8, 2011, the CRTC launched an awaited public process to review its regulatory approach with respect to billing practices for wholesale Internet access services. In light of this, the CRTC has determined that the implementation of wholesale usage based billing (UBB), as approved over time through a series of decisions (Telecom Decisions 2010-255, 2010-802 and 2010-44), will be suspended pending disposition of the CRTC’s current review (implementation was to take effect March 1, 2011). The selected objective of the review is that small Internet service providers (ISPs) continue to be afforded the flexibility to bring pricing discipline, innovation, and consumer choice to the residential Internet services market. The CRTC’s review will be based on two fundamental principles. First, as a general rule, ordinary consumers served by small ISPs should not have to fund the bandwidth used by the heaviest retail consumers. Second, smaller ISPs should continue to be in a position to offer competitive and innovative alternatives in the retail Internet services market, These two fundamental principles constituted the CRTC’s regulatory approach with respect to wholesale UBB. ‘The CRTC has invited comments on: 1. How best to implement the two aforementioned principles with respect to the wholesale services used by small ISPs; 2. Whether the CRTC should mandate the large incumbent carriers to sell a minimum level of bandwidth to small ISPs and, if so, what that level should be; 3. Whether it is appropriate to hold an online consultation as part of the CRTC’s review; and 4. Whether it is appropriate to hold an oral public hearing as part of the CRTC’s review. Parties requesting or proposing changes to the CRTC’s regulatory approach are expected to demonstrate how such changes would: benefit consumers to allow them fulsome access to the Internet; respect the principle that ordinary consumers should not have to fund the bandwidth use of the heaviest consumers; and ensure that small ISPs retain flexibility and continue to be a source of innovation in the industry. Parties interested in participating in the public proceeding are invited to file comments with the CRTC by March 28, 2011. Subsequent reply comments are to be filed by April 29, 2011 00018A flurry of regulatory events led to the most recent UBB decisions May 6, 2010 CRTC releases UBB decision 2010-255 July May 28, 2010 Bell files applica- tion with CRTC to vary UBB decision 2010-255 ‘Oct 28, 2010 CRTC releases new UBB decision (2010- 802) at Bell's re- quest, and initiates proceeding on wholesale UBB rates September October August Nov 22, 2010 CNOC files applica- tion with CRTC to vary UBB decision 2010-802 CH! December January 2011 Novembe Jan 28, 2014 CRTC releases new UBB decision (2011-44) on wholesale UBB rates for cablecos and telcos 000019GOVERNMENT OFFICIALS QUOTES SOURCES Konrad von Finckenstein Chairman of the CRTC Konrad von Finckenstein Chairman of the CRTC Chairman of the CRTC Konrad von Finckenstein Chairman of the CRTC Konrad von Finckenstein | «La facturation fondée sur Tutlisation constitue un principe légitime pour les services Internet, Nous sommes convaincus quil n'y a aucune différence entre les services internet et les autres services publics, et que la grande majorité d'utilisateurs Internet ne devraient pas avoir & subventionner les grands utilisateurs», a dit M. von Finckenstein, qui n’en est pas a son premier différend avec le cabinet Harper. Facturation Finternet a Futilisation - Le CRTC retarde la mise en oeuvre de sa décision Le Devoir 4 février, 2011 ‘Von Finekensiein defended the riling, Saying & was the fair decision thal avoided penalizing ordinary Internet users for heavy downloaders. Fourteen percent of residential internet users were responsisle for 83% of traffic, he noted. "f you use more than the average Canadian, you will have to pay more,” he said. “The principle to me is clear." \Von Finckenstein said the regulator didn't bow to government pressure to review the ruling, but instead came to the decision on its own after a request from Bell and another provider to delay its implementation. "We decided in light of the considerable concern that had arisen," he said, then notified the Industry depuly minister "as a courtesy." hhat's the only communication | had with the minister or anyone in government." T would like to reiterate the commission's view that usage-based bling is a legitimate principle for pricing Internet services,’ he said. "We are convinced that Internet services are no different than other public utilities, and the vast majority of Internet users should not be asked to subsidize a small minority of heavy users. For us, itis a question of fundamental fairness. Let me restate: ordinary users should not be forced to subsidize heavy users." ‘The commission has decided to delay the implementation of usage based biling for wholesale customers by al least 60 days,” von Finckenstein told the Commons industry committee Thursday after doing his best to explain the decision, Von Finckenstein said his agency is not infallible and should be given the opportunity to reviews its decisions. "| can only say we didn't take this decision lightly... (but) we may not have gotten the right one and we realize in light of the public concern about this .. itis appropriate to review it," he told the MPs on the committee. | Von Finckenstein told the committee he made this decision to review the ruling even before the Conservative government issued an ultimatum telling the CRTC to reverse the ruling or it would He said the review will determine whether the decision protects consumers and ensures heavy users pay more. "The_ internet will no be metered ‘Sudbury Star Feb 4, 2011 CRTC io Teview' Internet decision Time and Transcript Feb 4, 2011 Canada Rebuffs BCE on Internet Billing by Overtuming Regulator Bloomberg Feb 4, 2011 CRTC delays usage cap Toronto Star Feb 4, 2011 000020ordinary users should not subsidize the heavy users,” the CRTC chair said. \Von Finckenstein argued usage-based billing is a legitimate principle for pricing Internet services. "We are convinced that Internet services are no different than other public utilities,” he said \Von Finckenstein said most Internet users fall well within the caps currently set by the large distributors “and would not be charged more unless their monthly usage increased dramatically.” | Konrad von Finckenstein Chairman of the CRTC Konrad von Finckenstein Chairman of the CRTC “We are convinced that internet services are no different than other public uliliies and the vast majority of intemet users should not be asked to subsidize a small minority of heavy users," he told the committee. "For us, it is a question of fundamental fairness.” _ «La facturation fondée sur Tutlisation constitue un principe Iégitime pour les services Internet, Nous sommes convaincus quil n'y a aucune difference entre les services Internet et les autres services publics, et que la grande majorité dutlisateurs Internet ne devraient pas avoir a subventionner les grands utilisateurs», a dit M. von Finckenstein, qui n’en est pas a son premier différend avec le cabinet Herper. CRTC to delay internet ruling CP / Waterloo Region Record Feb 4, 2011 Facturation internet & Futiisation - Le CRTC retarde la mise en oeuvre de sa décision Le Devoir 4 février 2011 | Konrad von Finckenstein Chairman of the CRTC The decision to review was self-initiated and we did itn light of the request by Bell saying, Please, let's delay it for 60 days, and make sure that we made the right decision," CRTC chair Konrad von Finckenstein told a the House Standing ‘Committee on Industry, Science and Technology on Thursday. ," von Finckenstein said “There are a number of small ISPs that serve approximately six per cent of the market “Despite offering innovative services and real competition, the small ISPs mostly rely on the large distributors’ networks.” ‘The problem with the Canadian Internet market is that a small number of users are eating up a disproportionate amount of bandwidth, and many of them are turning to third party resellers that don't impose bandwidth caps, von Finckenstein said, "We are trying to find economic ways to discipline the use of the Internet," he said, Von Finckenstein said he did not believe that allowing Bell to charge resellers usage fees at 85 per cent of the price of the incumbents’ retail prices would stifle competition, “Our whole intent along this road was to ensure that small ISPs remained there as a competitor to discipline the large companies,” he said. \Von Finckenstein cited the CRTC’s speed-matching decision, which required the incumbent ISPs to provide wholesale Internet to small ISPs at the same speeds offered to the incumbents’ retail customers, as an example of the commission ‘encouraging competition, ‘CRTC reviewing usage-based billing at request of Bell, chair says Wire Report Feb 3, 2010 000021"We made the big companies sell at the same speed fo wholesalers. We decided on the policy, nat the big companies It wasn't for our rules, small ISPs wouldn't exist,” he said Von Finckenstein said Internet services should be likened to other public ullilies, such as water, gas and electricity, where | internet consumers pay for the bandwidth they use and are not compelled to subsidize the heavy users, “[The CRTC] doesn't set the caps. We [told Bell that] you have to treat your wholesale customers like you treat yourself. That's the basic principle." he said \Von Finckenstein said the commission is ready to return to the decision with open eyes, but that he doesn't know if the outcome will be different. "We made our decision based on the evidence that was available at the time. Maybe because of all of this publicity, we wil find ourselves with more evidence now." ‘The CRTC has opened a call for submissions on the review and is not ruling out the possibility of a public hearing, von | Finckenstein said. "We have had three hearings on this already. I's not something we do lightly.” he said = Mare Garneau | ‘The government is supposed to lead, is supposed to formulate policy, is supposed to tell us what they're going to doin this | Media Availability | |i Soil econo to nko Carats bates nich wewore once. Arts oath hey go caught wor pole Conn | Poo. 2011 fn acaeniy said at eat in bused on pure pola costaratre img aa.1 hin voy ncaa ho fata teres oa tl ply vacuum san ha goverment wh especie gal zone. ae we head L tomtom ‘ae Namnespedtionedelalesoremy. Wstine wees! | Ware Garneau The bi cepa nT GE%_ Thay hy converged ay hav so of vrapo io mao mofoy andi or voy | Wed Bray Uber compat aoe he coneurer, Whet nave aking beat ere tying o grow he smal SPs and rel someting,” | Poo 2011 tar ahould ve ceary win he andote of ne GRY Unfortunate ona remaned #20050) Mone Bem __| Sepan‘agan ne Sure ong wha ems Sased ants undostandngafls manage = Ware Garneau Tho, the prolshat ate form ae GRTC dos hathave stacy wih fo mada needo poms Weal vali Uber a Sanpetton ad innovaton agaist he coves econ here, Ave nov safety wi teteeinal hey | Feb. 201 | Seapine cceped wnat ineb Phin be te cane poco on espa ISP you Gol you Mare Garneau It's very clear in this case that, that Mr. Clement was re, was reacting to political considerations rather than to policy Media Availability. Liberal MP considerations. And again, following, reacting as opposed to leading and providing this digital economy policy that the talk | Feb 3, 2011 0 much about they haven't actually provided: I | Mare Garneau i that was done, then there would very rarely 0 ifs that policy vacuum that is causing | Media Avail Liberal MP this problem to the point where, | mean, Mr. Clement did not even communicate with Mr. von Finckenstein about the | Feb 3, 2011 decision. | asked him during the hearing and Mr. von Finckenstein heard from the Tweets that Mr. Clement put out that if the government doesn’t change this, we're going to reverse it. There was no formal communication to Mr. von Finckenstein before the Tweet saying look, we have a problem here. We don't agree with the situation, we have to review it. There's no ‘communication between the two and that again is a failure of the government. | I = 000022 ityMarc Garneau Liberal MP Mare Garneau Liberal MP The fact is unfortunately the government is not providing policy direction to the CRTC and that's why we have this situation Where is this government on the issue of, on the principle of net neutrality? Where is it on the issue of foreign investment in Canada? Where is it on broadband access, high speed for al Canadians? These are fundamental issues inthis rapidly evolving world that we live in. And that guidance despite the fact that Mr. Clement talks about his digital economy, despite the fact that he talks about the importance of competition, despite the fact that he talks about the importance of innovation, he is not communicating that guidance to the CRTC so that it can make decisions that actually are in harmony with the government Tthink that what is very, very clear today is that the problem has to do with a giant polley vacuum coming from this government. The CRTC tries to do its best job possible within its mandate and the guidance that it receives from the government. Mr. Clement talked about sometimes we disagree with the CR, CRTC and we reverse their decisions because it doesn't agree with government policy. The problem is that that government policy is not clear to the CRTC, has not been | communicated to the CRTC. So the CRTC is working in a vacuum, it does the best job it can and regrettably what happens is it makes decisions sometimes, The government then decides no that's not what we want, that's not in line with our Policy. Brian Masse NDP MP Brian Masse: Wall today, we saw that consumers are going to basically pay for the policies of the Conservatives here. Clearly, Mr. Clement cannot run from his predecessor's decision from 2006. That set the framework for the CRTC that now has a policy to protect big business at the expense of consumers. It was evident by the testimony | by Mr. von Finckenstein that there's a going to be a bias against residential consumers. They are going to have to | subsidize the business operations and the logic that's being proposed that there's going to be this extra cap tax that i, is now on Canadians doesn't hold water. He's adding that to deal with the issue over the lack of capacity but atthe same time saying there is no capacity problem, 50 why is it then that consumers have to pay this extra additional tax on themselves. So today was very disappointing to see the fact that the plan that was going to be reviewed is going to be done under auspices of consumers and residential peoples continuing to subsidize. And second of al, the Minister just siting back and waiting for this decision just stays the execution on people. There's no doubt about that. He has to actually change the mandate again to make it more palatable for Canadians, but the mandate once again is the real problem here and unless the Minister does so, i's just 2 charade that the consumers, the Conservatives are doing right now to cistraction, but the realty is that Canadian consumers will be hosed st the end of the da Media Availability Feb 3, 2011 ‘Wedia availability 000023,Question: ''m confused. | thought what Minister Clement was announcing was for consumers and would actually hurt some of the major companies. And now you're saying that he's trying to protect companies. Finckenstein’s going back to a model that’s going to have an extra tax with the caps on residential users. It won't be applied to businesses. He said that very clear in his testimony at the end that that's not his mandate. And that mandate ‘was put in change by Mr. Bernier back in 2006. So the confines of what he has to do still relates to his overall mandate and so consumers will pay for that. Itll come from somebody and i's going to be consumers. Question: It looks like, when | went and checked the prices, it looks like businesses pay @ much higher price for intemet access. So if, on a per gigabyte basis, is it subsidizing it if they're paying more? Brian Masse: ‘Well actually the testimony was that they could get special deals. Some of the larger users in the business field actually get larger deals and, and are able to negotiate that privately with the companies. So that’s what we heard by Mr. van Finckenstein as testimony. So, but | mean | just don't understand the logic in terms of where the consumers being high users in the residential and the consumer field have to pay a different tax on it for usage. ‘Why wouldn't the same logic be paid for businesses? Why would small businesses be treated the same as large businesses that are far bigger downloaders? Brian Masse Well the consumers, unless he changes the mandate, rght now Mr. von | In fact what was clear is that they could get the special desl for additional volume whereas if you use it on the residential side or the commercial or consumer side, you paid the additional tax. So if their high volumes are going to get a discount, whereas residential people are going to pay an additional tax for that actual increased usage. Question: Why are you calling ita tax? Brian Masse Wellit is. It's @ cap. When they cap an increase on that, | mean it takes away from the, the notion of the, of a net neutrality internet access that’s, is out there. So I believe i's an additional tax on those users that are using it. | use the example because it came to me from a, a, from a constituent of doing their classes online and having to actually pay for the extra because of that streaming volume is so significant. So they're doing their education at home like i's evolved to and they're going to have to pay, he’s going to have to pay extra money this month because he's gone over the limit. Question: | asked, | asked the same question of Mr. Gameau. Do you think that by this ruling being overturned, do you think i's going to destroy the big ISP's? Brian Masse: No. First ofall, it hasn't been overturned and second of all, it's going to come back in ‘a manifestation that's under the current directive that was reissued and changed in 2008. | think what was kind of interesting and frightening for consumers out there is that the Commissioner, you know, proposed that, or noted cell phone, 00024“Source gouvernementale ‘Senior Conservative government official that you know, look in Canada, we have some of the highest cell phone costs in, in, in the world and if that's the model that he wants to bring us through to the digital age under mandate that he's directed under by the Conservatives, the consequences will be extreme for 's of prices. Thank you ‘Le CRTC ne doit pas se bercer dillusions. Le premier ministre et le ministre de l'industrie, Tony Clement, vont casser cette décision, a moins que le CRTC ne le fasse de son propre chef, a affirmé une source gouvernementale digne de foi ‘Le premier ministre croit que la décision du CRTC a des répercussions négatives sur tous les Canadiens et les Québécois, mais surtout ceux qui vivent en milieu rural et qui se servent davantage d'intemet. Ses députés et ministres de partout au pays, mais en particulier ceux du Québec qui viennent des régions rurales, lui ont exprimé leurs inquiétudes au sujet de cette décision. C'est pourquoi le premier ministre va agir pour défendre les intéréts des régions”, ajouté cette source. “The CRTC should be under no illusion - the Prime Minister and minister of Industry will reverse this decision unless the CRTC does it itself,” 2 senior Conservative government official said Wednesday. "if they don't reconsider, we will reverse their decision.” Frankly, @ decision like this is clearly not in the best interest of consumers," the senior official said. “This is @ bread-and- butter issue." Ottawa cassera la décision du CRTC La Presse 3 février, 2011 Otiawa fo reverse CRTC decision on Internet billing Decision not in ‘best interest of consumers’ Toronto Star Feb. 3, 2011 Critics wallop Web cap Edmonton Sun Feb 3, 2011 Feds to quash CRTC ruling on download fees Vancouver Sun _ _ Feb3,2011 Rick Dykstra Tory MP Rick Dykstra said he's heard from businesses in his Niagara-region riding worried they'll face a financial burden | Critics wallop Web cap | Tory MP because of their heavy Internet use. "My hope is that we don't put these smaller businesses that exist in Niagara, in Edmonton Sun | articular St. Catharines, out of business,” he said Feb 3, 2011 ' do understand (big telecommunications companies) face some issues, but | think where you need to draw the line is the difficulty that is imposed on smaller business and smaller communities. We need to see some equivalence and some | equity." _ _ _ | ‘Anthony Rota Liberal MP Anthony Rola said he has heard the same complaints. "That's why we need to bring it fo committee, and that's | Cries wallop Web cap Liberal MP why the minister has to examine it and come up with a solution," he said. Edmonton Sun | Mare Garneau Liberal MP Feb3,2011 ‘Wile do not agree with the CRTC's decision on usage-based bling, and we willbring he fight for an open and innovative | UBB: Tho heats on internet environment to Parliament,” said Livoral Industry, Science and Technology Critic Marc Gemeau in his party's press. | Cart.ca release eaueenia peceaeegeetee rob 210i (eee "What we'¥e concemed with and whal the Prime Minisler i conoamed with s he impact on consumers, and that is why | Tories fo review Internet biling Ottawa 00025a ‘Communications director for the Prime Minister's Office one news report Charlie Angus NOP critic NDP critic Charlie Angus said the CRTC decision emphasizes that Canadians are held hostage by a handful of companies. "We have a family compact (of) about three companies that now control your cellphones. They control your Internet. They contro} your viewing, because they now contro! the television networks. And we are paying through the nose for it. We need competition and we need the CRTC to stand up for consumers," the MP said. Dan McTeague Liberal MP jine Michelis CRTC spokeswoman ‘Stephen Harper Premier Ministre [inthe past few years, the CRTC has already alowed, even encouraged, big lelecom providers to Impose usage mils on driving network usage up disproportionately," says Micheli, Liberal MP Dan McTeague warmed MPs thal independent service providers "willbe forced out ofthe market ifthe CRTCS decision on usage-based bili is permitted.” customers. "Bell actually began pricing its Bell Internet service this way in late 2008,” says spokeswoman Jacqueline Michelis, "The vast majority of our customers typically don't pay fees for excess usage.” In October, the CRTC decided to make Bell's wholesale providers adopt the same usage-based billing system. “That's only | fair, since, while our own customers are billed using UBB, wholesalers have been able to offer unlimited Internet plans, | En aprés-midi hier, le premier ministre Stephen Harper a confirmé que son gouvernement révisera la décision du CRTC, Etat s'est dit" trés inquiet " de impact des nouvelles mesures de tarification pour Internet. A cet effet, le gouvernement pourrait accepler, refuser ou demander au CRTC de modifier sa décision dici le ter mars. we're going to be reviewing this thoroughly,” said Dimitri Soudas, communications director for the Prime Minister's Office, in ] Tole very soon Toronto Star Feb 2, 2011 Feds might save limitless Intermet Times and Transcript Feb 2, 2011 Tories to review Internet billing Ottawa to rule very soon Toronto Star Feb 2, 2011 Tories fo review Internet biling Ottawa torre very soon Toronto Star Feb 2, 2011 ‘Social media sounding call to arms Per- usage theory ignites Toronto Star Feb 2, 2011 Une dacision du CRTC séme la grogne et linguiétude Le Droit 2 tévrier, 2014 ‘Stephen Harper Prime Minister "Were very concemed about CRTC’s decision on usage-based billing and its impact on consumers,” Harper tweeted. “Ive asked for a review of the decision, Harper questions internet charges CP / Waterloo Region Record Feb 2, 2011 Harper steps into Web dispute PM expresses concern that CRTC decision will harm consumers, businesses Globe and Mail Feb 2, 2011 CRTC decision could for 2 users fo cut 000026Dan McTeague Liberal Consumer Affairs Critic "The Liberals say the CRTC decision wil ullmately ead o higher internet rates for all, “Ws clear that consumers and | business have not had a lot of input in this and what input has obviously been given reduces affordability, it reduces choice and reduces access,” Liberal consumer affairs crc Dan McTeague said | "We are moving very rapidly toward a digital age in which options and choice for consumers are there and we have the CRTC which has decided to basically stymie that in favour of those who control bandwidth.” ack on Skype, gaming Vancouver Sun Feb 2, 2010 = Harper questions intemet charges GP / Waterloo Region Record Feb 2, 2011 Charlie Angus New Democrat digital affairs critic New Democrat digital affairs critic Charlie Angus, who has long campaigned against usage-based billing for internet service, called ita rip-off. "Canada is already falling behind other countries in terms of choice, accessibility and pricing for the internet," Angus said in a recent statement. Harper questions infemet charges CP / Waterloo Region Record Feb 2, 2011 Marc Garneau Le critique libéral en matiére dindustrie Charlie Angus New Democrat digital Le Nouveau Parti démocratique a été le premier parti politique & s'opposer au nouveau régiement, [a fin de semaine demniére. Les libéraux ont suivi, hier. Le critique libéral en matiére dindustrie, Marc Garneau, considére la décision “anticompétitive” et somme los conservateurs de la renverser. "Ca aura comme résultat d'avoir un baréme de coats qui désavantage trop les petites compagnies. II y aura moins de compétition, moins de choix et moins diinnovation’, déplore le député. Charlie Angus, digital affare eric forthe NDP, said the decision makes Canada a igial backwater and called on he] government to go further to protect consumers from getting gouged by telecom giants. Terminé, Internet Minit Le Soleil 2 fevrier, 2014 Feds might save limitiess intemet Times and Transcript affairs critic Feb 2, 2011 "I think the government's woken up to the fact that Canadians are frustrated and they're upset they've been ripped off month after month,” Angus said, | "if the caps are coming off ISP competition, take the caps off every family, off every business, off every consumer because | we are being ripped off at an extraordinary rate.” _ 2 = Charlie Angus But the Liberals and the NDP are calling on the feds to reverse the ruling, claiming it strikes a death knell for unlimited Feds fo review Intemat usage New Democrat digital Internet use in Canada, Kingston Whig-Standard affairs critic Feb 2, 2014 "The CRTC fumbled the ball on this," said NOP digital affairs critic Charlie Angus, arguing it will hamper consumers and ‘small businesses with puritive usage fees. Dan McTeague Liberal Consumer Affairs Critic "This CRTC decision will imit Canadians’ ability to use services like Netfix or watch the news streamed over the Internet, Liberal consumer affairs critic Dan McTeague said in a statement. "This shows yet again that under a Conservative Feds fo review Intamel usage-fee ruling Kingston Whig-Standard ‘Shawn Murphy PEIMP government, CRTC has come to mean ‘Consumers Rarely Taken into Consideration." " Feb 2.2011 ‘Shawn Murphy said this decision allows large Internet service providers to raise rates and reduce download limits for Island MP opposes CRTC Internet consumers. "Not only does this decrease Internet provider competition, which in turn means reduced Internet access, but it | ruling also hurts innovation and creation if consumers’ Internet use is prohibitively expensive,” said Murphy. "The Internet was | The Guardian developed as a public resource and as much as possible, it must remain a public resourk Feb 2, 2011 000027Marc Garneau Liberal MP Charlie Angus New Democrat digital The decision by the CRTC effectively stops unlimited Internet use plans from existing. "Small business owners that rely on video and online teleconferencing will suffer big time if these measures are put in place,” stated Murphy. Liberal MP Mare Garneau told CBC News Monday night he belioves the ruling is anti-competitive. "Because it does penalize the small internet service providers,” said Garneau, who is his party's technology eriic and an MP for West mount- Ville Mari. "What wo need to have is clear and Wansparent rules 60 Ws being used in a measured capacity and Ws not jst nsttutng | the principle that every time you turn on the Internet, they can ding you for fees like they do with cellphones," Angus said. affairs critic "We've seen this before; when we were told that deregulating cable rates would give customers a big benefit. We were paying 60 to 100 per cent in no time.” Charlie Angus Charlie Angus, the digital affairs critic for the NDP, said if the Conservative government is serious about protecting New Democrat digital consumers and quashing anti-competitive behaviour by large ISP-broadcast entities, it would act in this case. affairs critic "They've made their so-called claim sticking up for consumers and innovation. If they can run around the country warning people about a fictitious iPhone tax, surely they can step up when Canadians are going to be ripped off and dinged every time they turn on the Internet," said Angus, adding Netflix’s predicament is a good example of the problem, ‘Rogers or Bell shouldn't get to decide whether they actually do make it into the market. And that's our big concern, They used to be ISPs, now they're media content providers. They're going to tell you their biggest threat is from online services like Netflix. you apply a billing cap to it, well that will make everybody go back to Rogers onDemand ... quickly because I's not going to be worth i "The obvious conflicts of interest are there," Angus said | Liberals, NDP urge rethink of usage- based billing decision Montreal Gazette Fob 1, 2011 Liberals, NDP urge rethink of usage- based billing decision Montreal Gazette Feb 1, 2011 Tories to review Internet billing decision Ottawa Citizen Feb 1, 2011 Charlie Angus New Democrat digital affairs critic Marc Garneau Liberal MP. P & P>> Evan: Welcome back to “power & politics.” We just heard from the industry minister tony clement and his take on the orte’s decision on what's called usage-based billing for internet use. The ertc decisioN, Now, let me hear from the opposition now. Should larger carriers be able to set the rates for all internet service providers? How should canada’s internet rates be regulated? Should companies like bell and rogers be able to bill you for the amount of data that you use? Let's find out. Joining me now is the liberal industry critic, science and technology critic, marc garneau, and the n.D.P. Digital issues critic >> Charlie Angus. Those are big handles, gentlemen -- charlie angus. Nice going. Charlie, you were up in the house talking about this. You just heard tony clement. The p.M. Has asked him to review the crtc decision and that it's a priority. He will bbe providing recommendations to cabinet within dicE. What would you like to see? Charlie Angus (NOP)>> What Id like to see is that Canadian families are finally protected here. The erte decision, which is @ laissez-faire approach to dealing with the massive media don glom rents controlling cell -- conglomerates controlling these areas, they have way too much power to do anti-competitive practices. So the latest decision by the crtc basically was Power & Poltios Rough Transcript | CBC News Feb 1, 2011 000028‘squeezing out = I mean, there's only 4% of the market where there's competition from these guys. They own 96% of the market. We are very concerned about that. And we want the caps taken off the small competitors so they can actually give Us better prices, but we also want the caps to be addressed on what's happening and family accounts, what is happening with businesses, students. Because I'm hearing from more and more people who say | pay for service and im getting dinged every time Calgary on the internet P & P>> Evan: Right. What about you, marc gameau? By the way, we're hearing from users here. What's your view on this. Rogers and the big companies say, hey, they paid to lay down the infrastructure. But a lot of these companies like bell were monopolies for a long time. They did get government support to do this for a long time, Should consumers be dinged for Using the internet to download things like movies? Mar Garneau (Lib)>> Well, we've already indicated our position, evan, very clearly. We don't want to just review the orte decision. We want to reverse it. In our opinion it's very, very important here to focus on offering the consumer more choice and stimulating innovation. Even mR. Clement said. It the trouble is he's gotten caught again with his pants down on this particular issue. He talked about the digital economy and how it would take him an hour to explain it, but the reality is that he hasn't said a thing about net neutrality. He hasn't said anything about open "e" government. He hasn't said anything about foreign investment in the telecommunications sector. They're always studying it. This is @ government that is following, reacting, and today the people have spoken. They're not showing the leadership that they should on this whole | digital economy. P & P>> Evan: Now, guys, let me just play the devils advocate for a second, charlie angus. | know that, you know, virus, land we hear it on e-mail, are saying, look, the crtc is out of date, and that they shouldn't be regulating ~ they shouldn't allow the monopolies to charge people. | understand the consumers’ concer. They don't want to pay morE. About you this decision may have implications beyond that in terms of the broadcast spectrum and the telco spectrum because it may allow video on demand, places like netflix to basically broadcast outside the normal channels. So, in other words, are there implications to this decision that are going beyond just what the consumer pays? Charlie Angus (NDP)>> >> This is the big issue here. This is where the problem with the CRTC. Is they've dropped the ball ~crtc, We don't have an open market. We don't have a free market. We have two or three, four companies that have been allowed to communicate control of the broadcast now. They are the isps. We look to the cric to be the good cop, to represent the public interest. What the crtc says again and again is their mandate is to interfere in the market as litte as possible. Well, that’s not really a mandate, What that's meant is the larger isps and the massive media conglomerates are taking more and more control and consumers are getting less and less. So now the issue of, say, netflix is @ really good ‘example because it shouldn't be up to rogers or it shouldn't be up to ctv bell to squash out competition by charging more at the consumer level on the internet bills. That's anti-competitive. What we should be shaving a discussion about, okay, if netflix is going to come into the system, should they be paying in like the regular telecoms or the broadcasters? That's a decision the crtc need to make. It shouldn't be done unilaterally every time the isps decide to jack up the rates so you won't ‘end up watching competing media fair. 000029P & P>55> Evan: There is a bigger issue here. Has this Issue, marc garneau, really Shown that the eric ~ it's made this, ruling, and yet they're clearly trying to balance consumer needs with, you know, teleco and broadcast needs, but is the crtc frankly out of date as an institution now? Can they not keep up? People are using apple T.V. They're downloading netflix Consumers clearly do not want to pay based on how much they use. They're furious about this Is it time -- does this show the crte's out of date? Mar Garneau (Lib)>> >> | think on this particular issue they are out of date. As you pointed out, people are changing their habits. They're streaming their television programming on the internet. The internet usage is going to increase. That's @ | good thing. That's innovation. And this ting decision certainly is no ~- this particular decision is the wrong decision. In Canada our caps are way too low. If you go over those caps, what they call overage, your costs are much too high. | Compare ourselves to other countries. This is a decision that weighs too heavily in favour of the large internet service providers who also in many cases are cable providers and who want to protect obviously their cable business as well. So | think the government has lost ~- or the cric has lost site here of the fact that they've gone too much against encouraging competition to give the consumer more choice and to innovate. : (000030-——_—__, | SDrrORIALs 1 Blogs | | Michael Geist Wie the controversy associated with UBB is i Citizen Special | more than 10 years ago. The original reasonin; | be needed to address network congestion | the current UBB regulatory ght involves a rm | First, the regulated GAS is not an Internet ser | gctua provision a internet sonseer Se | the end users them 000031Calgary Herald Editorial Faced with a grassroots uprising and threats of federal government intervention, the CRTC wisely backed away Thursday from its unpopular decision on Internet usage-based billing (UBB), Canada needs to be on an even playing field with the rest of the world, where flat rate, unlimited Internet service is more the norm. Canada, unbeknownst to most people, allows 2 bandwidth cap on residential Intemet plans. The big companies freely apply UBB. Until now, most people have no trouble staying under the limit. But as the information superhighway becomes, quicker and more efficient, consumers wil start exceeding their limit. It's true that major operators have spent billions building their infrastructure, but phone and cable companies had monopolies in Canada for years. Canadians had no choice but to give them their business. It's Canadian consumers who provided the money for those infrastructure investments. Moreover, industry insiders say that improved technology, and more powerful machines, have made delivery of bandwidth cheaper and more efficient, ‘Those who download less data on the Internet shouldn't have to subsidize heavy users, but by the same token the giants who dominate the telecom industry shouldn't force their business model on the wholesale service providers. The government should open the market to true bandwidth competition. Consumers deserve more choices and a future where they are looking at a dramatic decrease in prices for Internet access. Streaming mad Canada needs more Internet ‘competition Calgary Herald Editorial Feb 4, 2011 ‘Ottawa Citizen Editorial Industry Minister Tony Clement announced late Wednesday that the federal government would require a review of the CRTC's plan to require “usage based billing,” or UBB, by small Internet service providers, and was sending the regulator "back to the drawing board." The result? For most of us, not much right now, People with the highest bandwidth requirements tend to use unlimited plans from smaller Internet Service Providers (ISPs). That's because these companies are able to offer unlimited downloading at no additional cost to themselves because the big carriers like Bell and Rogers are required to lease them the line into your home for a fiat rate. This arrangement was necessary to inject some much-needed competition into the market. It has likely contributed to lowering the rates charged by the big telcos. But this can't last forever in its current form: In wading into this mess, Clement claims that his concer is competition, but that is a relative term in the heavily regulated telecom business. And so, unti the entire telecom regime gets a much-needed overhaul, the regulator must regulate. What is a fair price for bandwidth? That's the big question. Estimates vary but the cost to the big carriers per gigabyte has been pegged in the 10-cent range by some experts. This is a far cry from the $1 or $2 per gigabyte you could be charged for exceeding your monthly plan. So there is certainly room to improve on the CRTC's mandated 15-per-cent discount on usage-based rates to be passed along to small ISPs. These companies need an edge to compete with the cable and phone monopolies. But as bandwidth demand accelerates the biggest users should be expected to pay their share. If Tony Clement has a figure in mind, let's hear it The cost ofa gigabyte Ottawa Citizen Editorial Feb 4, 2010 Globe and Mail Editorial Canadians are investing billions of dollars, from large network hubs to the newest online video subscription, in the Internet, but Usage-based biling and cooing this spending is taking place in a policy vacuum. The usage-based billing debate, with sloganeers either calling on customers to_| Globe and Mall Editorial 000032Kalvin Reid London Free Press Sarl "paying for what you use" or on large Inlemet service providers to stop “ying oki the open Internal" only the atest] manifestation of this uncertainty. There are good reasons, in theory, to allow UBB - the levying of charges, based on the amount of material downloaded, by large providers on smalier providers who use their network infrastructure. But the federal government should send a recent decision on UBB back to the CRTC; not because it would make for better politics, but as @ first step in cleaning up Canadian Internet policy. In many competitive marketplaces, and in utilities, the commodity price per unitis often well-known. Consumers can know how much wheat costs by the bushel, or electricity by the kilowatt hour. But the actual cost to ISPs of downloading a lot of data is @ black box; while large providers on occasion file information in confidence to the CRTC, the public has little ability to assess their claims around whether, say, $1 per gigabyte (equivalent to around an hour of online video) for heavy users is justifiable. The large ISPs argue that this is acceptable, because we have a competitive marketplace. But we don't, at least not truly. In many parts of Canada, the market for Internet services into the home is a duopoly; the choice is between a local cable company and a local phone company. The smaller providers, the subject of the recent UBB decision, make up only around 6 per cent of the national market. In the U.S., the marketplace provides for no caps on data, or much higher caps, than those in Canada. The CRTC decision, in which smaller providers get a 15-per-cent price discount from whet the large providers’ own customers pay for data downloading, is not supported by any particular economic evidence. It indirectly regulates price, something the CRTC is told to avoid. It's, in other words, a messy compromise that emanates from conflicting and contradictory mandates and federal direction ‘The federal government needs to amend these policies, which have not been updated since the advent of widespread mobile data or online video. The guiding principles should encourage competition and investment, including more foreign investment; | give sufficient clarity to the CRTC to allow it to proceed without constant second-guessing; and, where there's a conflict, err on | imperative is in getting the greatest amount of speedy Intemet access to the greatest number of Canadians at the lowest price. _| the side of encouraging more access. For while competition within the telecommunications sector is desirable, itis prone to the occasional market failure. The greater Feb 3, 2010 Leave it to Canada to find @ need to slap regulations on anything that can be regulated. Under fire from critics and the ‘opposition parties, the ruling Conservatives have said they will review the CRTC decision, with a report expected by the end of the month, And really, they had no choice. What is being sought by the big ISPs amounts to litle more than gouging and market protection, limiting competition and putting severe restrictions not only on individual Canadians, but also on small-and medium- sized businesses that are increasingly relying on the Internet to grow their ventures. This is potentially crippling for the small and medium businesses that are filling the void left by Canada’s rapidly declining manufacturing sector. The Internet helps these businesses recruit new clients, serve existing ones and spread their reach and influence around the world. The usage caps approved by the CRTC will attach a significant cost to that. ‘Cap on Internet usage lite more than ISP gouging London Free Press Editorial Feb 3, 2011 000033,Le Soleit Financial Post Pierre-Paul Noreau | | Terence Corcoran ‘And it's more than a coincidence that the companies behind the push for restrictive usage-based billing are also in the television | industry, which stands to lose the most with the proliferation of TV shows and movies available for legal download on the Internet. if Canada is going to go the route of usage-based billing, at the very least it has to increase the cap. Comeast, the largest provider in the United States, puts a cap of 250 gigabytes on its customers. That is more reasonable than what is being offered in Canada. ‘Ala base de ce débat, il faut se rappeler que les joueurs majeurs de lindustrie de la cablodistribution et des télécommunications ont jadis été forcés de partager leur réseau avec de petits acteurs. Le CRTC a souscrit a cette analyse et a récemment donné raison a Bell, qui s’en plaignait. L'organisme fédéral de réglementation a en conséquence décrété que les ullisateurs d'Internet devront, & compter du ter mars, étre tarifés & lusage, Les victimes seront exception. Seulement 10 % des clients de services Internet sont étiquetés "trés gros utlisateurs" En soi, lidée d'imposer une limite se justiie tres bien. La bande passante n'est pas élastique et, pour 'augmenter, il faut investir. Le téléchargement massif, plus souvent qu'autrement llégal, a done des repercussions sur la facture de ensemble des abonnés. Qui plus est, Internet est aujourd'hui un service public. Les importants débours gouvernementaux pour desenciaver les régions éloignées le démontrent, Mais les comparaisons indiquent aussi que le Canada est loin d'etre & avant. garde en termes de qualité de service, de disponibilté et de cout. Alors, s'il faut laisser les clients des revendeurs abuser avec des téléchargements hors limites, le Canada n'a pas fini d'étre en rattrapage. Alors, plutdt que de forcer le CRTC a reculer comme semblent vouloir le faire les partis fédéraux unanimes & dénoncer la nouvelle limitation imposée aux revendeurs, les députés devraient travailler & trouver des solutions pour maintenir le service & un coat raisonnable pour ensemble des usagers et en améliorer la qualité 7 oaté du vrai enjeu Le Soleil Editorial 3 fever, 2011 | The story al over the Intemel, on Twitter and Facebook ~ Canada's equivalent of @ revolutionary march on Parlament= 1s that on March 1 Belt will set a 25-gigabyte limit on its Internet customers, above which everybody will pay $2 a GB per month. Then, on June 1, Rogers will follow suit. And that's a fact. It says so on the Internet. Which means is the main driving force behind the great 300,000-man march of the internet petition in which Canadian lefties get to overthrow the Mubarak of Canada, namely | the telecom companies. The 25-GB story is also Liberal MP Dan McTeague's main talking point as he joins the great free-the- Internet movement. The revolution appears to have succeeded with the Cabinet deciding late Wednesday to cave in to the activists’ demands. It's @ revolution, however, without foundation. For example, in response to my Wednesday column on Industry Minister Tony Clement's capitulation to the mob outside (‘We will be reviewing this decision,” he said), a young man at the University of Western Ontario, I'l call him Danny, informed me with great authority that “after Bell/Rogers change their caps to 25 gigs, there will be zero alternatives available." The 25-gigabyte Internet myth National Post Comment Feb 3, 2011 000034Montreal Gazette Editorial When I talked fo Danny, l asked how he knew this. I's well known, he said, that Bell will make the move on March 1 and Rogers will follow on June 1. Canadian Intemet access will be capped at 25 GB per month, and anyone who goes over will pay $2 per GB. It’s in the documents that everybody's looking at on the Internet, he said. Could he track these down for me? What he sent back, however, was more of what | had already seen an the thousands of misleading postings that are flooding the biog sites, many of them based on the work of people at OpenMedia.ca, which is sort of like the Muslim Brotherhood of broadband liberation, Try as | might to verify this with telecom officials, there appears to be no evidence of such a dramatic increase in costs on consumers, even those who use third-party resellers. The idea that the telecom companies aim to drive people away from the Internet toward broadcast seems highly unlikely, even preposterous. Certainly no Bell or Rogers or Videotron or Telus customers face killer increases in Internet fees. The claim of activists, that the telecom giants are out to punish Canadian Internet users, especially high-volume down-loaders of live Intemet TV and HD movies, seems to be contradicted by the actual pricing packages offered now and to be offered in the future. If the cable and phone giants are out to slash Internet caps to 25 GB, why did Videotron in Quebec, effective Tuesday, announce an increase in its high-end capacity at what looks to me to be lower prices than Bell, Basic Internet starts at $28.95. For its $55.95 package, Videotron boosted the upload speed to 1.5 megabits per second and the volume total to 120 GB from 100. At the high end, for $82.95, speed was increased by one mbps to three mbps and capacity from 125 GB to 150. These are Not the moves one expects from an industry that is allegedly moving in the other direction, At Bell and Rogers, many price, speed and volume packages are available -- none of which come anywhere close to forcing consumers to pay $2 for each GB ‘above 25. At Bell, a source told me that on March 1 its new rate structure will make it possible for high-end users to increase their downloads with marginal increases in cost. If the basic charge is $32 for 25 GB, an extra $5 will allow for 40 GB. For $60, up to 300 GB. This kind of user-based pricing (UBB) on Internet usage is nothing new. No doubt the recent CRTC decision to allow telecom companies to apply UBB to third-party resellers is something of a burden to the resellers, (See Michael Garbe's Counterpoint at right.) But it does not impose hellish new costs on ali Canadians, kiling innovation and creativity, as Mr. Clement claimed. Another canard is that the United States imposes no user-based pricing, except Comcast, which-- as Mr. McTeague likes to Point out -- imposes a cap of 250 GB. That may be true, but that doesnt mean Comcast and other U.S. telecoms would not impose caps if they could, since not pricing based on usage is economically crazy. And for the record, a study by Wall Communications commissioned by the CRTC last year showed that Canadian download costs were lower than American download costs (see table below). Such numbers are obviously fraught with uncertainty, but they demonstrate that there is more to this issue than joining revolutionary virtual marches on Ottawa -- something the Conservative Cabinet hasn't bothered to figure out. Canadians have had real choice in the type and price of Internet service provider they use. Choices run @ gamut from Canada’s big ISPS like Rogers Communications, BCE Inc. and Shaw Communications, to smaller ISPs thet compete against ther bigger ‘vals by offering unimited acces CRTC Intamet ruling hurt the litle guy Montreal Gazette Editorial Feb3, 2011 000035But a decision last year and confirmed last week by the Canadian Radio-television and Telecommunications Commission threatened that competitiveness, and possibly the very existence of some small ISPs. The CRTC decision required a usage- based billing model for internet service providers, big and small. This might sound innocuous enough, but it cuts the legs out from under the small ISPs. If enough of them were to go down, the field would be left to the big telecom players. To critics of usage-based billing, the CRTC's decision handed the big players a huge competitive advantage in a high-growth sector. For the small ISPs, unlimited access was their main competitive advantage. The CRTC decision means that, like the big players, they would have to charge customers extra if the customers go over monthly caps. Consumers and small-and medium-sized businesses have come to rely on the Internet. This is a trend that's here to stay. Postmedia News learned last night that the federal government plans to overturn the CRTC ruling unless the commission makes the move itself. That followed statements by Prime Minister Stephen Harper and Industry Minister Tony Clement emphasizing the need to ensure competition in the market and choice for consumers. For a nation that is increasingly reliant on the internet, that’s welcome news. Pierre Bergeron Le Droit Richard French | Vice-chairman of the | CRTC, 2005-2007 - CN-Tellier Professor at the University of Ottawa's Graduate ‘School of Public and Le GRC a frappé un coup inutile en permettant aux grands fournisseurs Gacces a Internet, comme Bell, dimposer des limites de téléchargement aux petits revendeurs, comme Primus, & qui ils louent leur réseau. Ces demniers devront refiler la facture & leurs abonnés qui profitent souvent d'aceas limite. Dans le présent contexte électoral, il réveillé un monstre “viral” qui forcera les conservateurs & casser la décision du CRTC, avec la bénédiction des libéraux el néo-démocrates. Personne ne versera de larmes sur le sort des Goliath de la ‘communication. Les internautes délaissent la téléphonie, la cAblodiffusion, la location de films et la télévision traditionnelles. IIs utiisent Internet our satisfaire leurs besoins de communication et de diverlissement. Les gros consommateurs de bande passante, qui Feprésentent le quart des abonnés, veulent éviter & tout prix la facturation d'internet a utilisation comme un film HD. Leur nombre va en s‘accroissant. (On comprendra les Goliath et les dinosaures de vouloir défendre leur terrtoire et leur emprise sur les marchés traditionnels. Ce combat d'arriére-garde est perdu d'avance car il menace la concurrence, ouverture et innovation au détriment des. consommateurs et des industries. Le ministre Tony Clement est justifié dintervenir pour casser la décision du CRTC. No government in Canadian history has second-guessed its independent regulators, the CRTC first among them, like the Conservatives. They've already reversed two of the CRTC's most significant decisions of the past five years - on the speed of, deregulation of the telecom giants and on whether the new mobile entrant Globalive is Canadian-controlled. So it’s not too surprising that Industry Minister Tony Clement says he'll review the CRTC’s decision to require independent Internet service providers to conform to usage-based Internet billing principles similar to what the network operators - in this case, Telus, Bell and Aliant - are charging their own customers. An election looms, after all, and the blogosphere is in a tizzy. David contre Goliath | Le Droit | 3 février 2011 ‘Second-guessing the CRTC comes ata price | Globe and Mail Comment Feb 2, 2011 000036International Affairs National Post Editorial ‘There's nothing constitutionally or legally wrong with cabinet's reviewing and reversing the decisions of independent regulators in accordance with statute, as in these cases. Quasi-judicial agencies must have some kind of accountability during their leadership's secure appointments for terms of multiple years. Appointment by the Governor in Council for such a term confers, neither omniscience nor infallibiity and, rather too often, a regulator forgets that sorry truth. But the minister will have to ask himself whether this particular decision is politically convenient, The aggrieved customers belong to third-party ISPs that purchase network capacity at regulated wholesale rates from the big telecom operators (which, in their tum, bitterly resent being obliged to put their infrastructure at the disposal of competitors). ‘The independent ISP industry is thus entirely the creature of government policy, intended to create an artificial form of competition in an oligopolistic industry. ‘On the one hand, the big operators threaten to stop investing in their networks, but never do. On the other hand, it seems hard to argue - as those who reject the ruling in effect do - that a minority of customers shouldn't pay fees that reflect their heavy usage. This is the kind of Gordian knot regulators are paid to cut, and a thankless task it is. Having decided to review this decision, however, Mr. Clement is embarking on somewhat more than that. He's beginning a review of independent telecom regulation as a functioning institution in the federal government. In the first place, his own government undertook the most spectacular rebuff of a federal regulator in Canadian history when it | told the CRTC in 2006 to be more attentive to market forces and to undertake less regulatory engineering of the marketplace. This decision meant much less regulatory handicapping of the telecom incumbents and more freedom for them to charge the rates and apply the terms and conditions they thought appropriate. This is precisely what the CRTC has done in the case of usage-based Internet pricing In the second place, the cumulative impact of a third reversal of a major decision by the same government will reduce the CRTC to a mere way station for disgruntled interests on the way to cabinet, The more the government reflexively reacts to public pressure by stepping in to placate the disappointed, the more it incents future stakeholders to induce such pressure, thus establishing a political dynamic that will feed on itself We established independent regulators because they're supposed to have the expertise, the freedom from partisan pressures, the time and the longer-term perspective to make the painful and complex decisions required to keep industries that are otherwise liable to market failure operating in some semblance of the public interest, Does the cabinet really want to position itself as the effective arbiter for all the campaigns of rent-seeking and special pleading that an institution such as the CRTC has historically dealt with? a Has Canada become a digital backwater? That is the view taken by federal opposition parties, who are condemning a decision | Paying by the megabit rendered on January 25 by the Canadian Radio-television and Telecommunications Commission (CRTC), which allows "usage- | National Post Editorial based billing” (UBB) of wholesale Internet providers. The decision allows large telecom companies, such as Bell, Rogers an 2011 000037Videotron, to set the rates charged to smaller Internet Service Providers (ISPs). These smaller ISPs, in turn, resell the bandwidth to homes and businesses, often packaging it in one-fee/unlimited-usage plans ‘These unlimited plans have allowed extremely heavy Internet users to circumvent caps on bandwidth that Canada's major Internet providers have imposed, since 2006, to limit the amount of Internet access for their direct retail customers (who get charged additional fees when their usage exceeds a certain level). Approximately 10% of customers typically surpass their limit and incur extra charges. In some cases, such customers have migrated to the all-you-can-download plans offered by smaller ISPs Efforts to encourage competition in Canade's telecom sector have been hampered by its history - in particular, the difficulty of transitioning from @ monopoly to a multi-player universe. Telecom infrastructure is costly to establish and maintain, which discourages new players and has popularized the resale of bandwidth over existing networks. Over the past few yeers, striking a balance between encouraging investment in these networks and allowing market forces free rein has proven to be a minefield for both the CRTC and the federal government. But we think the CRTC has struck the right balance with its latest decision Unfortunately, this decision has become political fodder -- with the federal Liberal party, desperate to strike a populist stance on any issue possible, going so far as to exploit it for fundraising purposes. Meanwhile, federal Industry Minister Tony Clement has announced that the government will review the decision, hinting that it may be quashed. Before rushing to second-guess this CRTC decision, the government should set its policy goals for the telecom sector, and stick to them. Ifit stil believes in market forces and personal responsibility, then those principles should apply to businesses across. the board; with Internet service being no exception Mark Evans | The real issue isnt metered biling but the lack of competition within Canadas Broadband market Tn most Markets, consumers are lucky if they have two choices - the cable or telephony company. This means competition is, at best, light because there's no need to compete when all you have to do is match what the other guy is doing, While Canada's telecom regulator, the CRTC, has made some half-hearted altempts over the past decade to encourage cable and telephone companies to offer wholesale access to other ISPs, the market has not flourished. ‘The small number of ISPs using wholesale services have established @ modest foothold by, in part, offering unlimited bandwidth - something will be killed if the CRTC’s metered billing decision is established, ‘The troubling reality of Canada's Internet landscape is how unprepared the government and the CRTC has been for the Intemet's emergence as the way to communicate, consume services and do business. We're still struggling with major decisions such as whether the Internet should be regulated or not. There's no regulation of broadband services so the ISPs can pretty much do what they want. ‘Canada Needs More Broadband Competition Mark Evens Blog Feb 2, 2011 000038‘And while the federal government has bent over backwards to encourage more wireless competition, litte has been done to stimulate more broadband competition. It has left the market with few choices and, as a result, innovation and competition have Not flourished. In Canada, broadband is seen as an unregulated utlity rather than a valuable service that will be a more essential part of Canada’s economic future. If the federal government were forward-thinking, it would create a new policy to encourage more broadband competition. It would be a bold and aggressive move because it could mean introducing policies that would force the existing ISPs to provide better and more wholesale access to networks in which they have invested hundreds of millions of dollars. It could mean ‘opening the doors to foreign companies so we get new well-financed competitors willing to move into an oligopolistic market At the end of the day, more broadband competition is crucial is Canada is looking to thrive globally. Metered billing is just a symptom of what's wrong with the market but it should be used as an excuse to focus on a much bigger and more important issue. Toronto Star Editorial No wonder consumer groups ‘The decision by the Canadian Radio-television and Telecommunications Commission (CRTC) lls the Internet playing Feld in favour of the major service providers, such as Bell Canada and Shaw Communications. The big companies, which serve 96 per cent of Canadians, impose monthly caps on how much users can download - and charge hefty fees for going over the limit. They argue that so-called bandwidth hogs should pay more than the average emailer and Facebook addict. The problem is that Internet use is changing fast. Canadians are among the biggest consumers of online video through services | like Netflix. More and more businesses are using advanced online applications and websites with rich video content - but find that they or their customers are bumping into the monthly limits decreed by Bell, Shaw, Rogers and the others. If they go over they can find themselves paying $2 or more for every extra gigabyte of data - something that costs the providers as litle as @ penny. Until the CRTC's ruling, users could turn to small, independent providers that lease space on the big companies’ networks and offer "no limit” plans. Now the CRTC has effectively shut that down by allowing Bell and Shaw to impose the kind of “usage- based billing” (the more you use, the more you pay) on the independent providers that they charge their own customers. That ‘makes it impossible for the independents to offer unlimited packages. The bottom line is that heavy Internet users will have Rowhere to tur to avoid the limits - and fees - imposed by the major companies. The stakes are bigger than heftier Bell bills for Netfix users and a few tech-sawyy businesses. Canada lags behind other advanced countries in the speed, reliability and cost of Internet services. Bell and the others argue they need higher fees to maintain and expand the system - but so far they have failed to make that case with the public. Forcing a handful of upstart, service providers to conform to the business model of the established companies will stile, not encourage, competition in a sector where it’s badly needed, ‘Dont stifle innovation | Toronto Star Editorial Feb 2, 2011 000039 id the opposition parties are crying foul, Prime Minister Stephen Harper, clearly feeling the heat,Vancouver Sun Editorial says he's concerned about the ruling’s impact on consumers ruling. His government needs to come up with a plan to foster more competition and ensure that Canada is a leader, not a laggard, in Internet innovation | Recently the CRTC approved a measure (o allow Internet service providers to switch to usage based biling (UBB). In case you are not familiar, this means that companies are able to charge by amount of bandwidth used. This would be fine if they charged what it actually costs to deliver this service. In essence, this is @ clear abuse by the large Internet suppliers. I's anti-competitive behaviour and drives home the point that, the CRTC is a worthless, regulatory dinosaur that is completely out of touch and serves no purpose in modern Canada other than to protect the interest of big business. As online media takes a turn to more media rich and bandwidth intensive content, this latest ruling is sure to keep Canada in the dark ages of technology and cripple innovation here for years to come unless itis reversed T | Usage-based billing a clear abuse by Intemet providers Vancouver Sun Editorial Feb 2, 2011 Michael Geist Law Professor, University of Ottawa Yesterday was @ remarkable day for those following the usage based billing and bandwidth cap issue. In the span of 24 hours, an unlikely political consensus emerged that left lite doubt that - at a minimum - the CRTC's UBB decision will be reconsidered... With Clement indicating that @ decision wil be forthcoming by March 1st, there is just one month for cabinet to address the issue. So what comes next? Politicians and policy makers must recognize that this particular decision is only a small part of the broader concern over an uncompetitive broadband marketplace that has led to near-universal use of bandwidth caps. Overturning the CRTC decision is necessary, but by no means sufficient to address the current problems. Government action should be accompanied by a broader strategy to increase competition and to guard against abusive behaviour by the dominant ISPs, On the specific CRTC UBB decisions, cabinet is faced with the option of asking the CRTC to reconsider the decisions or to overrule the Commission. While it will be tempting to punt the issue back to the CRTC for reconsideration or varying the decisions with its own regulatory solutions, it should take a clear stand by rescinding the Commission's various UBB decisions Section 12 of the Telecommunications Act gives the government the power to rescind a Commission decision within a year of its release (there is no need for a specific petition to vary or rescind a decision): It should exercise the power to rescind for the following reasons: 4. The CRTC has gone back and forth on the UBB issue with no clear idea of what itis trying to achieve. Sending the issue back for another decision merely repeats the cycle with litle hope for meaningful change. 2. The CRTC's attitude toward independent ISPs has been particularly troubling for those committed to fostering new competition. 3. Rescinding the decision is consistent with the government's own policy direction to the CRTC in 2006, which recognized the eed to consider independent ISPs within the context of mandated wholesale access. in particular, the Commission was directed as part of its review to take into account the principles of technological and competitive neutrality, the potential for The Government's Review of Usage Based Billing Michael Geist Blog Feb 1, 2011 ‘00040Ifthe government is serious about fostering a more competitive marketplace, ISPs and consumers need policy decisions that promote competition, not more hearings. itis entirely possible that Bell would reapply for wholesale UBB, but with the ‘government having spoken, the issue would likely be viewed in a new light without the baggage of the poorly reasoned earlier UBB decisions. As | noted yesterday, there are alternatives to UBB such as bulk wholesale service that would allow for independent ISPs to offer more choice than just passing along Bell's caps (it should be the companies that propose this, not the government in an order to vary the decision). Rescinding the CRTC's UBB decisions is the right thing to do and an important first step in addressing the competition concerns in the Canadian market. incumbents to exercise market power in the wholesale and relail markets for the service in the absence of mandated access to wholesale services, and the impediments faced by new and existing carriers seeking to develop competing network facilities 4. Sending the decision back to the CRTC for reconsideration virtually guarantees months or years of additional costly hearings and litigation. This would effectively represent a win for Bell at the expense of the independent ISPs. Bell can clearly afford to spend millions on litigation and lobbying in an effort to wear down the independent ISPs. For smaller independent ISPs, the ongoing regulatory costs, which are ultimately borne by consumers, are enormous and result in a less competitive market Mark Evans in the name of the glass being hal ful, have taken the ibery of translating Mr, Clements Statement with an optimistic Spin Clement: On Tuesday, January 25, 2011, the CRTC announced its decision to allow wholesale and retail internet service providers to charge customers for exceeding the monthly usage of data transfer permitted with their broadband Intemet package. This will mean, for the first time, that many smaller and regional internet service providers will be required to move to a system of usage-based billing for their customers, Translation: Dam, dam, dar. The CRTC has made another dumb decision. When will those telecom/nerd bureaucrats get anything right. Last year, they almost destroyed our plans for more wireless competition by questioning how much of Wind Mobile was owned by foreign interests; now they want to screw small ISPs just trying to make a buck offering good service. Clement: | am aware that an appeal has been initiated by a market participant. As Canada's Industry Minister, itis my job to help encourage an innovative and competitive marketplace, and to ensure Canadian consumers have real choices in the services they purchase. | can assure that, as with any ruling, this decision will be studied carefully to ensure that competition, innovation and consumers were all fairly considered, ‘Transiation: The good news is the ISPs skewered by the CRTC have decided to appeal. This give me time lots of time to figure out a master plan to counter-attack the decision while the appeal works its way through the system. Then, I'l be able to save the day by proposing a solution that makes everyone look good, especially my party. Clement: The Harper Government is committed to encouraging choice and competition in wireless and internet markets, Increased choice results in more competition, which means lower prices and better quality services for Canadians. We have always been clear on our policies in this regard and will continue on this path. | An Optimists Take on Clement's Broadband Statement Mark Evens Blog Feb 1, 2011the broadband oligopoly that exists. Our bad. You gotta believe that encouraging more broadband competition would be a kick: ass part of a election platform ‘cause it's so voter-friendly. And, it wll support that innovation thing-a-jig that everyone keeps blabbing on about, ‘Translation: You know, we spent so much lime focused on driving more wireless compeiiion that we completely forgot about | Clement: Our Conservative Government is focussed on the economy and creating a positive environment for job creators and business to flourish. Canadians can count on us to do what is in the best interest of consumers. Translation: Hey, Rogers, Telus, Shaw, Videotron, Bell and the other ISPs making a killing from broadband service, don't worry 100 much. Welll take care of you too ‘cause, after all, we're pro-business and we've got an election to win. 00042MINISTER CLEMENT QUOTES AND STATEMENTS. "The policy of the Harper government has and always will be to encourage competition, increase consumer choice, minimize regulation, and allow market forces to prevail..."Regardless of the outcome of the CRTC review, under a Conservative government, this ruling will not be implemented, SOURCES Ottawa wont accept CRTC's current Internet billing stance, Clement says Postmedia Feb. 4, 2011 "That's where we draw the line, quite frankly,” he said. "We believe there should be choice. If an Internet service Provider wants to offer unlimited access for a flat fee, they should be allowed to do that in this marketplace. “The CRTC decision was doing was eliminating that possibilty. That's what we found unacceptable.” ‘CRTC vows to reassess ruling on user-based billing National Post Feb. 4, 2011 "Regardless ofthe outcome of the CRTs review, under a Conservative goverament, his Tlig Wil not Be implemented," “This particular fake by the CRTC on this policy isnot accplabIe To ou government, so we are looking Tora different approach.” “As our government develops Canada's first, comprehensive digital economy strategy, we need to look very carefully at how decisions like these effect the bigger picture." "if an ISP wants to offer unlimited access for a flat fee, they should be allowed to offer that in our marketplace What the CRTC decision was doing was eliminating that possibility and that is what we found unacceptable, I think that the people that i've been interacting with know full well that this is about the, the independent ISP's and that for years, we've had usage based billing that was provided by, as a, as @ business model for the large providers. So I, I can only give you my experience which was people knew full well this had to do with the independent ISP's, but at the same time, they saw what the, down the line, what the impact of this could be. If there is no competition, if there is no choice on different business models, how negative that would impact on | consumers in the future. Twould say to the large providers i's great doin you can get a return on investment for your investors and so the, nothing is really changed. Nothing was implemented so go about your business, keep delivering better service to consumers, keep delivering more service to consumers and you'll have nothing to worry about. Consumers will be thankful of that, But if you don't deliver on that, consumers have a right to a choice, ~ CRTC to delay intemet ruling Canadian Press Feb., 4, 2011 Internet will not be metered ‘Sun Medi Feb. 4, 2011 Harper's regulatory rebuke and the voters he covets, Globe and Mail Feb. 4, 2011 CRTC to delay intemet ruling Canadian Press Feb4,2011 CRTC reviewing usage-based billing at request of Bell, chair says Wire Report Feb. 4, 2011 Media Availability Feb. 3, 2011 business in Canada. The reason thal you're here is because | Media Availability Feb. 3, 2011 looo04s | “As | indicated in my statement, we're going to be work, while the CRTC is working on its policy for the next 60 plus | days, we're going to be working on our policy as well.”Tthink the, the important thing to recall is we have a number of choices. We can refer back or we can vary a Media Availability decision of the CRTC. When we vary the decision, then if we were to do that, then it would have some specific | Feb. 3, 2011 | parameters as to what we would put in its place.“ _ oe _ “Tm trying to make it clear fo you and through you to the CRTC that if they do a review, and then come back with | Media Availability exactly the same answer, that is not acceptable to the Government of Canada. We are going to stand by our Feb. 3, 2011 position that that ruling is a bad ruling, i's not good for the Canadian economy, it’s not good for Canadian consumers and innovators and entrepreneurs.” : = I, the CRTC has @ role to play in our environment and | respect thal. But whenever they cross a line and do Media Availability something that is contrary to government policy, we're elected by the people of Canada to, to, to come up with Feb. 3, 2011 Policies that make sense for the people of Canada. And so in those instances where we think they've crossed that line, we reserve the right to enforce the policy that is the policy of the Government of Canada. That's always been the, the relationship between the CRTC and whatever government is in power on any particular day. And so we're exercising that leadership. | certainly have the, the confidence of the Prime Minister on this. He feels the same way that I do about it and we're hoping that this continuing dialogue that we're having with the CRTC will get us. better policy for the CRTC and of course, government policy is going to continue to evolve in this area.” “Well we do need more infrastructure and certainly the internet service providers, the providers are building on the | Media Availability infrastructure and that is appropriate. But they're doing it for a reason, They're doing it because it pays to doso | Feb. 3, 2011 for their company. It's, i's the way that they can get a return on their investment because quite frankly, consumers ‘Such as yourselves and the people who, who read or listen or watch your programs, that’s what they're demanding of the provider as well. So there's no magic here. Yeah, they're, they're, they're building the infrastructure in this country as they should. I's, i's a good business decision for them to do so. What we object to again, is to say that through a CRTC regulatory decision, that no one else can have a business model that is different from the business model of the large providers. That is wrong. That's not good for consumers. That eliminates choice and ll have knock down effects for our county.” “I's a small percentage of the marketplace, youre absolutely right but | believe the principle is a Sound principle. | Media Availability ‘The principle is that should you, as a consumer, not wish to go to Bell or Rogers or whomever, wish to use an Feb. 3, 2011 independent smaller ISP for your internet, that is offering a flat fee for unlimited access, you should have that choice in the marketplace. if someone is offering it in the marketplace.” ‘There are providers now who have that pay as you go system over 25 gigabytes, let's say. What this decision was | Media Availability trying to do was to force down the throats of every single internet service provider that very same business model, | Feb. 3, 2011 no ifs, ands or buts. And that's where, that's where we draw the line, quite frankly. We believe that there should be choice. If an internet service provide wants to offer unlimited access for a flat fee, they should be allowed to offer that in our, in our system, in our marketplace. And what this CRTC decision was doing was eliminating that possimi, that possibility and that’s what we found unacceptable for consumers and for creators and innovators and ‘small businesses, “Ithink what's going fo happen over the next 60 days or longer is that the CRTC is going to go through its review of | Media Availability the situation. At the same time, at the same time, we are, through our Digital Economy Strategy that I've been Feb. 3, 2011 pursuing for over a year, pursuing ways to make sure that Canadians are engaged online, that they have access to | Creativity, to, to education, to innovation online and I'm certainly going to be having regard to this whole ircumstance as | roll out the next chapter of the Digital Economy Strategy.“ g _ he good news is that there's going to be no change in internet biling for consumers on March 1st. Thats why | Media Availability 'm pleased. The other bit of good news is I'm reiterating on behalf of the Prime Minister and our government that | Feb. 3, 2011 this particular take by the CRTC on this policy is not acceptable to our government, We believe it's not acceptable _| ‘00044to Canadians of course, and so we are looking for a different approach by the CRTC and that's what I'm signalling to you today.” "Well we do have a regulator, i's called the CRTC. They have to work though within the policies and programs that have been enunciated by the government. We do have the right to, to have policies, public policies in the areas where the CRTC renders individuals judgements, And that's what we've done in, in this case, We feel very strongly that we do need competition, we do need to give consumers choice, we do need to have a space on the internet for our innovators and our creators and we are looking forward to see when the CRTC goes back to the drawing board, how they can square that circle, because certainly this decision or set of three decisions, to be more accurate, that they have rendered on this particular policy do not support what we think is important for the Canadian economy, “Regardless of the outcome of the CRTC review, under @ Conservalive government, this ruling will not be implemented. As our government develops Canada’s first comprehensive digital economy strategy, we need to look very carefully at how decisions like these affect the bigger picture. We need to make sure that government Policies provide the right framework for entrepreneurs to flourish, for innovative new ideas to take root and for real opportunity and real job creation, And certainly | look forward to the results of the CRTC review in that context. * Media Availability Feb. 3, 2011 Media Availability Feb. 3, 2011 BUT I WILL SAY THIS. 1DO THINK WE DO HAVE AN ISSUE TO MAKE SURE THAT WE CONTINUE TO HAVE MORE BAND WIDTH, FOR MORE CANADIANS WHO ARE GOING TO BE USING IT MORE OF THE TIME Power and Politics THEY (telcos) ARE MAKING INVESTMENTS IN INFRASTRUCTURE BECAUSE THEY SEE A BUSINESS | MODEL WHERE THEY CAN GET RETURN ON THEIR INVESTMENT. AND I STILL THINK THAT'S GOING TO. BE THE CASE EVEN IF NETFLIX IS HERE. NETFLIX IS IN THE UNITED STATES. IT'S NOT BEEN THE END OF THE WORLD FOR THE UNITED STATES. OTHER COMPANIES LIKE NETFLIX ARE IN OTHER COUNTRIES. IT HASN'T MEANT THE DESTRUCTION OF THE INTERNET. SO I THINK WE SHOULD PUT THINGS IN PERSPECTIVE Feb. 3, 2011 THINK IT'S UP TO THE ISPs TO DECIDE HOW THEY WANT TO MARKET TO CANADIANS F THEY WANT TO GIVE A FLAT FEE, UNLIMITED ACCESS LET THEM DO THAT. IF THEY DONT WANT TO DO THAT, THAT'S THEIR CHOICE. WHY DOES IT HAVE TO BE THROUGH A REGULATORY BODY TO DECIDE HOW THE MARKETPLACE IS GOING TO REACT TO EVERY SINGLE CUSTOMER. BUT THE CRTC TAKES AWAY MARKET CHOICE TO CANADIANS. THAT'S THE FUNDAMENTAL OBJECTION I HAVE, THAT OUR GOVERNMENT HAS, THAT PRIME MINISTER HARPER HAS AND THAT'S WHY WE SAID. GO BACK TO THE DRAWING BOARD. SO | SAY TO THE CRTC, YOU CAN REVIEW THE DECISION BUT IF YOU AFTER THE REVIEW, IF THE -- IF YOU COME BACK WITH THE SAME DECISION THEN YOU WILL COME UP AGAINST A CABINET WHICH WILL OVERTURN THE DECISION. WHAT HIS DECISION DiD WAS FORCE EVERY SINGLE INTERNET SERVICE PROVIDER TO HAVE THE ‘SAME BUSINESS MODEL. THAT IS TO SAY A CAP ON USAGE AND AFTER THAT, THERE'S A USER | BILLING FOR EACH GIGABYTE THAT YOU'RE USING WHAT WE HAVE DONE AS A GOVERNMENT HAS BEEN VERY, VERY CLEAR. SINCE WE'VE BEEN ELECTED. WE'RE PRO CONSUMER, WE'RE PRO CHOICE. THAT'S ONE OF THE REASONS WE SET ASIDE SPECTRUM TO ALLOW NEW ENTRANTS TO COME IN TO COMPETE WITH THE BIG GUYS. SOITHINK | OUR POLICY HAS BEEN VERY CLEAR. THAT IT'S IMPORTANT TO ALLOW THAT CHOICE TO BE MADE BY CONSUMERS AND TO GIVE THEM MORE CHOICES. Power and Politics Feb. 3, 2011 Power and Politics Feb. 3, 2011 Power and Polit Feb. 3, 2011 Power and Politics Feb. 3, 2011 — looo04s,(CRTC) ARE NOT CONNECTED TO OUR STATED POLICY, AS A GOVERNMENT, THAT WE NEED TO HAVE MORE CONSUMER CHOICE. WE NEED TO MAKE SURE THAT OUR ENTREPRENEURS AND INNOVATORS FLOURISH ON THE INTERNET. THAT'S THE BASIS OF (OUR SAYING THIS DECISION CANNOT STAND, IT WILL NOT STAND AND YOU EITHER CHANGE YOUR MIND OR WE'LL CHANGE IT THROUGH ACCOUNTABILITY MINUTES. ‘CERTAINLY THERE IS A ROLE TO HAVE AN INDEPENDENT SET OF EARS AND RISE TO LOOK AT SOME OF THESE REGULATORY ISSUES BUT | ALSO BELIEVE AT THE END OF THE DAY THE GOVERNMENT ON BEHALF OF THE PEOPLE HAS A ROLE TO PLAY TO SET THE POLICY THAT IS GOING TO MAKE SURE THAT CANADA REMAINS RELEVANT AND COMPETITIVE IN THE INTERNET AGE AND I TAKE THAT RESPONSIBILITY AS INDUSTRY MINISTER VERY SERIOUSLY. a “True. CRTC must go back to drawing board,” he tweeted after being asked ifit was true the govemment would act the CRTC does not back down." Using his Twitter instant messaging account - followed by more than 8,300 people, including journalists and many in political circles - Mr. Clement hammered home how skeptical he is of the CRTC decision concerning what Internet providers call “usage-based billing.” “Y'm looking forward to the CRTC chairman's appearance before the House Industry Committee . .. to explain his support for the UBB decision," the Industry Minister said via Twitter. To drive home his point, Mr. Clement quickly added: "I remain very concerned by the UBB decision of the CRTC and look forward to my review being completed ASAP.” Industry Minister Tony Clement confirmed the government will overrule the CRTC late Wednesday night on his Twitter account, saying the CRTC must "go back to the drawing board." "This [usage-based billing] is about forcing a single business model on all competitors,” he wrote. “I'm for market choice." RT @markpetersen What better way shd @TonyClement_MP communicate govt policy to ppl than via Twiler?. Keep tweeting Tony! : | Thx! RT @sbrowne0819 @TonyClement_MP I support your d conversation where it happens. #ertc about § hours ago via Twitterific. RT @lpurves Heavy intemet users are no "hogs". Heavy internet users are the early adopters of the digital futur. @acoyne @TonyCiement_ MP RT @lpurves Heavy internet users are no “hogs”. Heavy internet users are @acoyne @TonyClement_ MP True RT @RosieBarion @TonyClement_MP says if CRTC reviews HUBB decision & comes back with same policy it will be overtuined by Cabinet. #hw Tweeps media: ma reaction a annonce CRTC #UBB aprés le comite @ 1730 au CB 253-D. Soyez-y! i Have the snd | support your weeting ‘arly adopters of the digital future. Media tweeple: | wil react to CRTC #UBB annct outside Committee Rn 259-D right after Committee at 1730. CU there! Taped interviews for Global TorontoiNalional conceming #UBB about hours ago via Twiteriie Power and Politics Feb. 3, 2011 Power and Politics | Feb. 3, 2011 CRTC will rescind ‘unlimited use’ Internet decision - or Ottawa will overturn it Globe and Mi Feb. 3, 2011 Feds to quash CRTC ruling on download fees Vancouver Sun Feb 3, 2011 | Feb 3 via Twitterrific Feb 3 via Twitterrific Feb 3 via Twitterrific | Feb 3 via Twitterrific Feb 3 via Twitterrific Feb 3 via Twilternific | Feb 3 via Twilterrifie *¥UBB: of course there are challenges ahead to give consumers more inlemet access at reasonable cost But CRTC decision wasn' the answer Feb 3 via Twilterrific 00046#UBB: In my media interviews today I've been stressing the need for CRTC fo reverse decision. Cabinet will act otherwise. /2 about Feb 3 via Twitternfic “As Canada’s Industry Minister, itis my jab to encourage an Innovative Gad competiive marketplace and fo ensure that Canadian consumers have real choices in the services they purchase. | can assure that, as with any ruling, these decisions will be studied carefully to ensure that competition, innovation and consumers were all fairly considered," said Clement in his release late Monday. UBB: The heat is on Cart.ca Feb 2, 2011 *T can certainly undertake to you that this sa top prionly forme and my department Industry Minister Tony Clement told reporters about a review ordered by Prime Minister Stephen Harper. "We're very concemed about this ruling by the CRTC," Clement told reporters. "We're concerned about how it impacts on consumers, on small business operators, on entrepreneurs, on creators “Iwill be reviewing this decision very, very quickly and will be making recommendations very, very shorly,” he said "We feel very strongly that we need more competition, we need more consumer choice, we need more choices for small business owners and operators and our entrepreneurs and our creators." Tories 1 review Internet billing Ottawa to rule very ‘soon Toronto Star Feb 2, 2011 "Canadians can count on us to do what is in the best interest of consumers,” he said | "Crest un enjeu important pour les consommateurs, pout les peiltes entreprises et pour les Innovaleurs » ‘Social media sounding call 0 arms Per-usage theory ignites Toronto Star Feb 2, 2011 Une décision du CRTC séme fa grogne et linquiétude Le Droit 2 février, 2011 “We're concerned about how it impacts on consumers, on small business operators, on entrepreneurs, on creators, all Canadians,” he said after question period in the House of Commons. "And we as a government have been focused on making life easier for our small businesspeople, for our creators, for consumers generally. critics pushed in the House of Commons to reverse the decision, *! indicated the impacts on consumers, on small business operators, on creators, on innovators. So that's why I have to work through this process... When you're dealing with a legal process that's what you have to do.,” Clement said, adding he would do so "very quickly.” Harper questions internet charges CP /Waterloo Region Record Feb 2, 2011 ‘Net billing reversal hinted | Windsor Star Feb 2, 2011 hhe decision, on its face, has some pretty severe impacts, so that’s what we're concerned about. | indicated the impacts on consumers, on small-business operators, on creators, on innovators. So that’s why I have to work. through a process - cross my T's, dot my 's," Clement told reporters in Ottawa. “When you're dealing with a legal process, that's what you have to do.”But | will be doing that very, very quickly, and gelting back to the prime minister and my colleagues very, very quickly,” he added, indicating the decision would be made before the end of the month, “We've prided ourselves as a government to giving more choices for consumers. That's why the Globalive decision was very important at the time.” Clement said. "We feel very strongly that we need more competition. We need Feds might save limitless Internet Times and Transcript Feb 2, 2011 00047more consumer choice. We need more choice for small-business owners and operators and our entrepreneurs and our creators. _ “Lcan assure that, as with any ruling, these decisions will be studied carefully to ensure that compeiition, innovation and consumers were all fairly considered,” Clement said. Question: The usage-based billing, you said yesterday you would have recommendations within days. Are you like are you looking at ~ could you be more specific? Hon. Tony Clement: Well, days means not 24 hours later. So we're still working on it, Question: Will we have it like this week? Hon. Tony Clement: Well, look, I'm not going to piace a timeline on it. 've got procedural responsibilities to make ‘sure that whatever we do has every T crossed and every | dotted. And that’s what we're going to do. Ithink Ive | been signalling pretty clearly that we have grave concems about the ruling of the CRTC, how it impacts consumers, how it impacts small businesses and innovators and creators in our society. That's our focus as a government and Ill be reviewing the decision very quickly with that in mind, Question: Would you want to overtum it or would you have — Hon. Tony Clement: We have a range of options. But that's certainly one of them, Question: What are the other options? Hon. Tony Clement: To send it back or to accept it, So clearly I'm signalling that | have grave problems with accepting it. Question: So it's just one of two, i's either overturn — Hon. Tony Clement: No, 's one of three, Question: But you've said the third one is out. Hon. Tony Clement: I'm not the entire cabinet so we have to go through a whole process which is what we're doing. | think the Prime Minister has made it clear that we have grave concerns and that's all | have to say. know | its your job to try to get me to speculate and get me to announcement something that I can’t announce today but when we have something to announce, I'm sure you'll be amongst the first to know. Question: Will you be issuing a statement or how would you make the announcement? Hon. Tony Clement: That hasn't been determined yet. Question: Thank you. Feds to review Intemet usage- fee ruling Kingston Whig-Standard | Feb 2, 2011 Post Caucus Scrum Feb 2, 2011 00048Hon. Tony Clement: Thanks very much, guys. Question: Just quickly on the ISP thing, you come from a small, medium-sized town. This seems to be where things are affecting consumers more than in big cities. Hon. Tony Clement: | think it affects consumers — no, | think it affects — anything that affects consumer choice, regardless of where you live, in a big city or @ small town, that's got to be a concern. One of the cornerstones of ‘our government has been on the telecom file to give consumers more choice. That's why — that's a good reason why this has to be reviewed and has to be reviewed quickly. And we have to make sure that whatever policy is on the internet that it helps consumers, increases competition, gives people more choice, helps our innovators, helps our creators, helps our small businesses. That's where I'm coming from. Thanks very much, folks. ‘@acoyne | stand up for consumers, creators, innovators & entrepreneurs, That's worth all the brickbats you can. throw at me. ‘@acoyne No Andrew: my response was to llustrate the inconsistencies of your position. Once again, why allow CRTC to force only 1 bus. model? @acoyne Funny, but I don't remember kudos from you after | allowed Globalive to compete. “more crickeis* Wednesday, February 2, 2017 Via Twitterrific Wednesday, February 2, 2017 via Twitterrific Wednesday, February 2, 2077 | via Twitettc @acoyne This is about forcing a single business model on all competitors. 'm for market choice. | guess youre not. Wednesday, February 2, 2017 via Twitterrific True. CRTC must go back to drawing board RT @RosieBarton is it true you will overturn internet decision if crt does not back down? Tremain very concerned by the #UBB decision of the CRTC & look forward to my review being completed ASAP. Wednesday, February 2, 2017 via Twitterrtic Wednesday, Febriary2, 2017 via Twittentic Tim looking forward fo the CRTC chairman's appearance before the House industry Cltee tomorrow to explain his support for #UBB decision. "Tam aware hal an appeal has been iilaled by @ market parlcpant, As Canada’s Industry Miniter, Tis my ob To help encourage an innovave and compeiive marketplace, and fo ensure Ganadian consumers have rel choices inthe services they purchase." Clement sald “Ican assure that, as with any ruling, this decision will be studied carefully to ensure that competition, innovation and consumers were all fairly considered.” Wednesday, February 2, 2017 Via Twitterrfic Tories to review Internet billing decision Ottawa Citizen Feb 1, 2011 Cabinet may intervene in CRTC ruling Clement said the Conservative government "is committed to encouraging choice and competition in wireless and | National Post Internet markets.” _ | Feb 1, 2011 P & P>> Evan: This issue, user-based billing, this could be a game changer for the intemet, telecom, and Power & Politics broadcast. Thiss big stuff here. First question, will your government make sure that canadians have access to Rough Transcript lower, more competitive rates for their internet service? CBC News | Feb 1, 2010 Tony Clement:>> Well, i think the issue that's before us right now is whether the business model of the big guys, a ‘bem or a rogers. is --a bell or a rogers, is going to be the business model for everybody or whether there can be 00049‘some choices, some differentiation, some competition on thaT. That's the issue tafts before the crtc issue that was before the crtc and that's the issue we're concerned about. As you say, evan, the answer to that question has ‘@ huge impact on consumer choice, on competitiveness, on innovation and our society, whether it's creators for entertainment purposes or researchers for other types of innovatioN. Small businesses are affected by this. So this, is a large issue, i would agree with you. P & P>> Evan: Why is the government weighing in here? You got the -- dimitri soudas, the director of ‘communications tweet being this. You've come out and it's suddenly urgent ebb. But the crtc original -- urgent ~ but the crtc had an original ruling last may. Then they had another one in october for the resalers, Those are people who use the bandwidth of the big guys, the rogers and bells, and they resell. Tony Clement:>> Right P & P>> That's almost nine months passed. Why this sudden urgency to get in on this his ctv news >> First of all, ‘we couldn't get in on -- on this issue? Tony Clement:>> First of all, we couldn't get in on the issue until the appeal process was over, and that happened a few days ago. With he had to wait for the appeal period to be oveR. Why it's happening now is because i's not just about @ business model choice of the large providers, but how the rest of the market is going to concern itself with access to the internet. So i's about 100% of the internet versus what the large providers provide. And that's @ huge public policy issue. P & P>> | want to get ~let’s start from the consumer end, okay? Because there's a consumer end and a business end. On the consumer end right now Canadians are paying more to get less on line than, say, fellow consumers in the united states who are using, say, at&T. There is a Harvard report last year on international broadband use that ‘says Canada has the highest monthly charge rates already for unbundled internet access of any country in the oecd. Already they're charging so much. Why are Canadians getting looked on internet access -- hooked on internet access? Tony Clement:>> Well, look, we have a market that we're trying to get more entrance into that mark, And that's why we've ~ market. And that's why we've taken the position on the telco side why wind mobile and mobllicty and these other providers, why they should be allowed entrance. So we've carved out spectrum so that they can deliver their services because we believe in competition. We believe there has to be more of a choice to consumers, and what are consumers telling us? They're telling us they want more choice. They want better service. They want lower cost and better value. So we're hearing thaT. We've been hearing that for years. And that’s why we've been acting in this way. When this came up, this was just another example of people saying they want more choice and they wanted to be protected from a business model that they don't necessarily agree with, P & P-but before we jump on the crtc, this is months old. In your mind does their decision give the big companies that could monopolize this, but who have paid for this, and that's what they're saying ~ they're saying we don't want the free riders, the netflix who are going to use huge chunks of bandwidth to download movies to free ride on ‘what we've spent for the broadband cable fibres. Is your opinion that it would give these companies a monopoly ‘over that to gouge consumers on the consumer end, in other words to pay for thehe bits of data they use? ‘Tony Clement:>> | guess what I'm saying is we're concerned that if this decision were allowed to stand in et cetera L present form, it means less choice for consumers, less opportunity for consumers to get unlimited access, “000050[ Business models from other providers. T worry about what it does for our innovators ~ innovators, creators, and smal businesses. That's the thing driving our review ofthis decision. Al the end of the day what we've got Yo have in this country is more choice, more competition, you know, cutthroat competition is good for the consumer. We want to see that inthis industry because i's so important for the other 85% of our economy if we'e going o create jobs and be innovative | P & P>> Evan: But on the consumer end, you want to protect consumers from getting gouged. For example, ine cable package now, if you watch more tv than I do -- and I'm sure you do, more politics, for example, more cbc than Ido, but you wouldn't pay more than i do on the same package. Tony Clement:>> Right P & P>> Evan: But the crte ruling may say tony clement, you use more internet, you down L.E.0. More movies than me, you pay more. Is that fair? Tony Clement:>> Here's the issue. The issue is what are the choices available. If we have a situation where there 's only one business model, that no one who wants to provide that internet service can give another package, whether i's unlimited access or free this or first 30 days free on broadband or whatever, that limits the choice to the consumers, and it could have a very negative impact on our ability to compete. So those are the issues before me. ‘And for those who would say, well, you know, this is something -- they're piggybacking on the providers that are in place right now ~ P & P>> Evan: Yeah, the free riders. Tony Clement:>> Free riders. Well, this was all regulated, You know, ifthe large providers are saying, well, they want to have more choice in their business model, that's fine as long as new entrants get a chance to offer @ choice. P & Po Evan: Look at netflix. Apparently the ratio is one gig gouin dive is roughly one hour of video. -~- Gigabyte. Accompany like netflix that offers tv shows on demand, movies on demand, essentially theyre competing with the broadcasters, but they're not paying. They're free riding on the existing broadband, They don't -- not subjected to the same rules that broadcasters are. So they're essentially competing against broadcasters, and they're taking up huge amount -- we're hearing up to 10% of the brand width on these companies and more to comE. How do you | fight that? What kind of regulation do you need to deal with the advent of a company like netflix and more to come? Tony Clement:>> Well, | think what consumers are telling us, they want to have these kinds of choices. If they don't want to watch something on television, they want to have the opportunity to watch it on-line through netflix or another company. So | guess my answer to you is these are important questions about how consumers are radically changing their viewing patterns and their consumption of news or entertainment or knowledge, whatever the case may be. The last thing you do, i would argue, is create a situation where only one business model is going to be allowed and, therefore, choices are going to be taken away from consumers. These are stil important issues. How do we make sure there is an incentive to build more broadband? That's an important question for our society, P & P>> Evan: Are new regulations coming? ‘Tony Glement:>> No. 'm just saying that -- well, 've got a whole digital economy strategy we we could do a whole ‘000051‘About fo go on CTV's Power Play on #UBB. 5:47 PM Feb ist via . Twitterrific ‘About to do Power & Politics with @evansolomoncbc on you know what... HUB 2:27 PM Feb 1st via Twittersific ‘#UBB: [willbe reviewing CRTC decision forthwith with @ view to protecting Canadians & promoting choice. 11:09 AM Feb ist via Twitterific ‘UBB: let me be clear: our Govt is very concerned about CRTC decision & its impact on consumers, small 10:51 AM Feb 1st via businesses & all Cdn. Twitterrific ‘show — which we could do a whole show on fo make sure in the on-line world our country is compaiitve. 00052QUESTION PERIOD CARD CRTC Usage Based Billing Approved by: Adam Scott, DGTP, January 26, 2010 QUESTION Engl xx words Q: What action does the Minister intend to take regarding the issue of usage-based billing (UBB)? RESPONSE ELEMENT 1 Englis xx words Canadians have embraced the Internet as a fundamental tool in their daily ives. ‘= Itis understandable that individuals become concerned when their ability to expand Internet usage is constrained. "There is also the reality that the volume of Internet traffic continues to increase dramatically "The CRTC established a framework to guide service providers in managing traffic, with ‘economic measures, such as usage-based billing, being preferable to other forms of traffic management. "Since the CRTC’s decision can be appealed, it would be inappropriate to comment further. BACKGROUND English: xxx words Usage-base¢ billing (UBB) allows Internet service providers (ISPs) to charge customers for ‘exceeding the monthly usage of data transfer permitted with their broadband Internet package. Bell has already introduced UBB for the majority of its retail Intemet customers. The CRTC is. allowing the Bell companies to apply UBB on their wholesale customers who lease part of Bell's network in order to provide their own retail Internet products. ‘On October 28, 2010, the CRTC released @ UBB decision which: 4. allowed the Bell companies to implement UBB for wholesale customers without having to move all their current retail customers off of unlimited plans; 2. allowed the Bell companies to waive UBB for promotional offers (e.g. allow a temporary unlimited broadband promotion}; and 3. set additional usage overage charges at levels comparable to the retail charges, pending a further proceeding on rates. ‘00065,s.24(1)(b) The CRTC's most recent UBB decision of January 25, 2011, is a follow up to the earlier proceeding. The CRTC determined that wholesale UBB rates should be set 15 percent lower than retail UBB rates for the telephone and cable companies’ wholesale Internet services. Discounted wholesale UBB rates are to be implemented by March 1, 2011. The decision can be appealed to Cabinet within 90 days of the ruling date. ‘A group of them have filed an ‘application with the CRTC tormally seeking that the decision of October 28, 2010, be varied. The CRTC has yet to issue a decision on this request. SECTOR Select: Strategic Policy Sector Coordinator: Lucie Sharpe Approve Telephone: Author: Andreea Todoran Telephone: 998-3382 Approved by: ‘00066Summary of Telecom Decision CRTC 2010-255: Bel’s applications to introduce usage-based billing for wholesale customers Issue On May 6, 2010 the CRTC approved, with changes, applications by Bell Aliant and Bell Canada to introduce usage based billing (UBB) charges for the small internet service providers (ISPs) that lease wholesale broadband service from Bell at regulated rates. The CRTC also outlined the details with respect to the implementation of UBB including the rates, terms and conditions that will apply. Background UBB allows internet service providers (ISPs) to charge customers for exceeding the monthly usage of data transfer permitted with their broadband intemet package. Bell Aliant and Bell Canada (collectively Bell) have already introduced UBB for the majority of their retail internet customers. On March 13, 2009, Bell fled applications with the CRTC to introduce UBB for its wholesale internet customers who rent part of Bell’s network in order to provide their ‘own retail internet products. Prior to this, Bell's wholesale customers had purchased bandwidth capacity on its network without being subject to usage charges. Replacing the current flat-rate wholesale structure with a Usage-based structure would allow Bell to impose usage caps on its wholesale customers and bill them for exceeding their allocated amount of bandwidth per month. On October 21, 2009 the CRTC determined that usage-based billing is, in principle, an economically effective and transparent internet traffic management practice which is acceptable for Bell's retail and wholesale customers. However, the CRTC decided to delay the implementation of UBB until a final determination on UBB had been issued and a complete record of that proceeding was available. Telecom Decision CRTC 2010-255 is the CRTC's final determination with respect to the implementation of UBB. Outcome of Telecom Decision CRTC 2010-255 On May 6, 2010 the CRTC approved Bell’s proposal to introduce UBB for its wholesale internet customers based on several considerations. The CRTC found that Bell's proposal for wholesale UBB qualifies as an economic internet traffic management practice and therefore could incent heavy internet end-users to reduce their usage. Accordingly, the CRTC approved UBB rates proposed by Bell, with some modifications, for residential and business wholesale internet services as just and reasonable. The CRTC considers that its decision advances the policy objectives set out in the Telecommunications Act and is consistent with the Policy Direction because it provides minimal interference with competitive market forces. Furthermore, it will allow Bell to apply UBB on a comparable basis to the cable companies, thereby sustaining competitive neutrality. ‘The CRTC's approval also subjects Bell to certain conditions that must be met prior to the implementation of UBB. In order to ensure equivalent treatment between Bell's retail service customers and the end-users of Bell's wholesale customers, the CRTC concluded that Bell may not implement UBB for its wholesale services until it charges 0000678.21(1)(a) 8.24(1)(b) UBB rates to all of its retail internet customers (including grandfathered flat-rate service contracts). Furthermore, after the preliminary condition has been met and Bell has implemented UBB for its wholesale customers, to the extent that Bell chooses to waive UBB charges to any existing or new retail customer, itis required to treat wholesale customers on an equivalent basis. The CRTC has also instructed Bell to provision its wholesale customers with an insurance plan (which offers additional monthly usage for a fixed monthly rate) that is equivalent to Bell's insurance plan for its retail customers. Considerations ‘00068Summary of Telecom Decision 2010-802: CRTC’s ruling on Bell's request to vary UBB Decision 2010-255 Issue On October 28, 2010, the CRTC approved an application filed by Bell Aliant and Bell Canada (collectively Bell) to review and vary a previous CRTC decision, which outlines the terms and conditions of usage-based billing (UBB) for Bell's wholesale Internet customers. Background UBB allows Internet service providers (ISPs) to charge customers for exceeding the monthly usage of data transfer permitted with their broadband Internet package. Bell has already introduced UBB for the majority of its retail Internet customers. In Telecom Decision CRTC 2010-256, the CRTC approved Bell's proposal to introduce UBB for wholesale customers, who lease part of Bell's network in order to provide their own retail internet products, subject to certain conditions. In May 2010, Bell filed an application with the CRTC to revisit Decision 2010-255 on the grounds that itis not competitively neutral and conflicts with the government's policy direction. Bell requested that the CRTC change the decision in several areas Outcome of Telecom Decision 2010-802 First, Bell asked the CRTC to alter the “all customers” requirement, which specifies that Bell may only implement UBB for wholesale customers once all of Bell's retail customers have migrated to UBB. Bell proposed a grandfathering arrangement whereby wholesale end-users that have been with the same ISP since February 1, 2007" are considered "grandfathered" and permitted to remain on their unlimited usage plans, subject to an unlimited usage premium charge, similar to Bell's own grandfathered retail customers. In Decision 2010-802, the CRTC approved Bell's proposed grandfathering arrangement on the basis that it creates equivalent treatment for Bell's wholesale and retail customers and is minimally intrusive. Consequently, Bell is now permitted to apply UBB charges to wholesale end-users that are not grandfathered. Grandfathered wholesale end-users will remain on unlimited usage plans and pay the same fiat monthly wholesale rates that were in place prior to the release of Decision 2010-255. However, to the extent Bell periodically increases premium rates for grandfathered retail customers, as a means of encouraging those customers to migrate to usage-based plans, Bell may propose equivalent wholesale rate increases for grandfathered wholesale end-users, subject to CRTC. approval. ‘Second, Bell asked the CRTC to remove the restriction which denies Bell the ability to waive UBB, on a promotional basis, for its deregulated retail Internet customers. Bell argued that this condition interferes with market forces by directly impeding its ability to respond to competitive market pressures. In Decision 2010-802, the CRTC acknowledged the interference that such a requirement could have on Bell’s operations and removed the provision from its original decision. Any concern that may arise relating to Bell's promotional activities will be addressed by the CRTC on a complaint basis. Third, Bell asked the CRTC to make the UBB rate structure for wholesale services equivalent to the UBB rate structure for retail services. This means removing the 25% discount that Bell's ' The same date that Bell ceased to offer flat-rate unlimited usage plans and began grandfathering customers on such plans ‘00069s.24(1)(a) 8.21(1)(b) wholesale customers enjoy relative to its retail customers. Bell argued that this would be more consistent with the UBB rate structure applied by the cable companies. In Decision 2010-802, the CRTC recognized that by setting Bell's UBB wholesale rates 25% lower that its UBB retail rates, it imposed an obligation on Bell that is not equitable with the obligations imposed on cable companies. Accordingly, the CRTC approved Bell's third request, but at the same time is initiating a new proceeding to consider whether UBB wholesale rates, for both the phone and cable companies, should be set at levels below UBB retail rates. Bell’s last request to the CRTC was to readjust the flat component of its wholesale rates, which the CRTC reduced in Decision 2010-255, to account for missing costing elements. Bell argued that the CRTC’s assumption that asynchronous transfer mode (ATM) switching costs can simply be replaced with Ethernet switching costs reflects an impossible network configuration. In Decision 2010-802 the CRTC denied Bell's last request, on the basis that an Ethemet growth solution would include significant reductions to switching and transmission costs that would offset the additional conversion and traffic migration costs suggested by Bell. ‘The CRTC concluded that wholesale customers have been aware of Bell's intent to implement UBB, therefore 90 days from the date of Decision 2010-802 is a reasonable implementation period. Consequently, Bell is to complete the implementation of UBB for non-grandfathered wholesale end-users by January 27, 2011. Considerations 000070CNOC files application with CRTC to vary UBB decision 2010-802 ‘On November 22, 2010, the Canadian Network Operators Consortium (CNOC), formed by a group of small Intemet service providers (ISPs). filed two applications with the CRTC regarding Decision 2010-802, which outlines the latest terms and conditions of usage-based billing (UBB) for Bell's wholesale Internet customers. CNOC’s first application asks the CRTC to alter the portion of Decision 2010-802 that gives Bell permission to charge wholesale Internet customers the same UBB rates it charges retail Internet customers. CNOC points out that wholesale and retail UBB rates are the topic of an ongoing CRTC proceeding and the Commission should not set wholesale UBB rates until that proceeding has concluded. CNOC’s second application asks the CRTC to immediately put on hold the implementation of UBB, outlined in Decision 2010-802, until the CRTC has ruled on CNOC's request to vary the decision. CNOC has requested an expedited process but the CRTC has made no indication that it will grant this. Consequently, it remains unclear as to when the CRTC will issue a decision, though some of CNOC's primary concems were addressed in the CRTC’s January 25" decision 000071Summary of Telecom Decision 2010-802: CRTC's ruling on Bell's request to vary UBB Decision 2010-255 Issue On October 28, 2010, the CRTC approved an application filed by Bell Aliant and Bell Canada (collectively Bell) to review and vary a previous CRTC decision, which outlines the terms and conditions of usage-based billing (UBB) for Bell’s wholesale Internet customers. Background UBB allows Internet service providers (ISPs) to charge customers for exceeding the monthly usage of data transfer permitted with their broadband Internet package. Bell has already introduced UBB for the majority of its retail Internet customers. In Telecom Decision CRTC 2010-255, the CRTC approved Bell's proposal to introduce UBB for wholesale customers, who lease part of Bell's network in order to provide their own retail Internet products, subject to certain conditions. In May 2010, Bell filed an application with the CRTC to revisit Decision 2010-255 on the grounds that it is not competitively neutral and conflicts with the government's. policy direction, Bell requested that the CRTC change the decision in several areas. Outcome of Telecom Decision 2010-802 First, Bell asked the CRTC to alter the ‘all customers" requirement, which specifies that Bell may only implement UBB for wholesale customers once all of Bell's retail customers have migrated to UBB. Bell proposed a grandfathering arrangement whereby wholesale end- that have been with the same ISP since February 1, 2007' are considered "grandfathered permitted to remain on their unlimited usage plans, subject to an unlimited usage premium charge, similar to Bell's own grandfathered retail customers. In Decision 2010-802, the CRTC. approved Bell’s proposed grandfathering arrangement on the basis that it creates equivalent treatment for Bell's wholesale and retail customers and is minimally intrusive. Consequently, Bell is now permitted to apply UBB charges to wholesale end-users that are not grandfathered Grandfathered wholesale end-users will remain on unlimited usage plans and pay the same flat monthly wholesale rates that were in place prior to the release of Decision 2010-255. However, to the extent Bell periodically increases premium rates for grandfathered retail customers, as a ‘means of encouraging those customers to migrate to usage-based plans, Bell may propose equivalent wholesale rate increases for grandfathered wholesale end-users, subject to CRTC approval Fs ind ‘Second, Bell asked the CRTC to remove the restriction which denies Bell the ability to waive UBB, on a promotional basis, for its deregulated retail Internet customers. Bell argued that this condition interferes with market forces by directly impeding its ability to respond to competitive market pressures. In Decision 2010-802, the CRTC acknowledged the interference that such a Tequirement could have on Bell's operations and removed the provision from its original decision. Any concern that may arise relating to Bell's promotional activities will be addressed by the CRTC on a complaint basis. Third, Bell asked the CRTC to make the UBB rate structure for wholesale services equivalent to the UBB rate structure for retail services. This means removing the 25% discount that Bell's "The same date that Bell ceased to offer flat-rate unlimited usage plans and began grandfathering customers on ‘such plans 000072s.21(1)(a) 8.21(1)(b) wholesale customers enjoy relative to its retail customers. Bell argued that this would be more consistent with the UBB rate structure applied by the cable companies. In Decision 2010-802, the CRTC recognized that by setting Bell's UBB wholesale rates 25% lower that its UBB retail rates, it imposed an obligation on Bell that is not equitable with the obligations imposed on cable companies. Accordingly, the CRTC approved Bell's third request, but at the same time is initiating a new proceeding to consider whether UBB wholesale rates, for both the phone and cable companies, should be set at levels below UBB retail rates. Bell's last request to the CRTC was to readjust the flat component of its wholesale rates, which the CRTC reduced in Decision 2010-255, to account for missing costing elements. Bell argued that the CRTC's assumption that asynchronous transfer mode (ATM) switching costs can simply be replaced with Ethernet switching costs reflects an impossible network configuration. In Decision 2010-802 the CRTC denied Bell's last request, on the basis that an Ethernet growth solution would include significant reductions to switching and transmission costs that would offset the additional conversion and traffic migration costs suggested by Bell. ‘The CRTC concluded that wholesale customers have been aware of Bell's intent to implement UBB, therefore 90 days from the date of Decision 2010-802 is a reasonable implementation period. Consequently, Bell is to complete the implementation of UBB for non-grandfathered wholesale end-users by January 27, 2011 Considerations 000073,Summary of Telecom Decision 2010-802: CRTC's ruling on Bell's request to vary UBB Decision 2010-255 Issue ‘On October 28, 2010, the CRTC approved an application filed by Bell Aliant and Bell Canada (collectively Bell) to review and vary a previous CRTC decision, which outlines the terms and conditions of usage-based billing (UBB) for Bell’s wholesale Internet customers. Background In May 2010, Bell filed an application with the CRTC to revisit Decision 2010-255 on the grounds that itis not competitively neutral and conflicts with the government's policy direction. Bell requested that the CRTC change the decision in several areas. Outcome of Telecom Decision 2010-802 First, Bell asked the CRTC to alter the “all customers” requirement, which specifies that Bell may only implement UBB for wholesale customers once all of Bell's retail customers have migrated to UBB. Bell proposed a grandfathering arrangement whereby wholesale end-users that have been with the same ISP since February 1, 2007’ are considered “grandfathered” and Permitted to remain on their unlimited usage plans, subject to an unlimited usage premium charge, similar to Bell's own grandfathered retail customers. In Decision 2010-802, the CRTC approved Bell's proposed grandfathering arrangement on the basis that it creates equivalent treatment for Bell's wholesale and retail customers and is minimally intrusive. Consequently, Bell is now permitted to apply UBB charges to wholesale end-users that are not grandfathered. Grandfathered wholesale end-users will remain on unlimited usage plans and pay the same flat monthly wholesale rates that were in place prior to the release of Decision 2010-255. However, to the extent Bell periodically increases premium rates for grandfathered retail customers, as a Means of encouraging those customers to migrate to usage-based plans, Bell may propose equivalent wholesale rate increases for grandfathered wholesale end-users, subject to CRTC approval ‘Second, Bell asked the CRTC to remove the restriction which denies Bell the ability to waive UBB. on a promotional basis, for its deregulated retail Internet customers. Bell argued that this condition interferes with market forces by directly impeding its ability to respond to competitive market pressures. In Decision 2010-802, the CRTC acknowledged the interference that such a Fequirement could have on Bell's operations and removed the provision from its original decision Any concer that may arise relating to Bell's promotional activities will be addressed by the CRTC on a complaint basis. Third, Bell asked the CRTC to make the UBB rate structure for wholesale services equivalent to the UBB rate structure for retail services. This means removing the 25% discount that Bells wholesale customers enjoy relative to its retail customers. Bell argued that this would be more consistent with the UBB rate structure applied by the cable companies. In Decision 2010-802, the CRTC recognized that by setting Bell's UBB wholesale rates 25% lower that its UBB retail rates, it imposed an obligation on E ail that is not equitable with the obligations imposed on cable companies. Accordingly, the CRTC approved Bell's third request, but at the same time is "The same dato that Bell ceased to offer f.(-rate unlimited usage plans and began grandfathering customers on ‘such plans 000074initiating new proceeding to consider whether UBB wholesale rates, for both the phone and cable companies, should be set at levels below UBB retail rates. Bell's last request to the CRTC was to readjust the flat component of its wholesale rates, which the CRTC reduced in Decision 2010-255, to account for missing costing elements. Bell argued that the CRTC’s assumption that asynchronous transfer mode (ATM) switching costs can simply be replaced with Ethernet switching costs reflects an impossible network configuration. In Decision 2010-802 the CRTC denied Bell's last request, on the basis that an Ethernet growth solution would include significant reductions to switching and transmission costs that would offset the additional conversion and traffic migration costs suggested by Bell ‘The CRTC concluded that wholesale customers have been aware of Bell's intent to implement UBB, therefore 90 days from the date of Decision 2010-802 is a reasonable implementation period. Consequently, Bell is to complete the implementation of UBB for non-grandfathered wholesale end-users by January 27, 2011. In this decision the CRTC also launched a follow up proceeding to review whether UBB wholesale rates for telcos and cablecos should be lower than retail rates, and by how much. In 2010-255 Bell had proposed a 25% discount, which was approved, while cable tariffs, in place since 2006, had wholesale rates on par with retail rates. 000075CNOC files application with CRTC to vary UBB decision 2010-802 (On November 22, 2010, the Canadian Network Operators Consortium (CNOC), formed by a group of small Internet service providers (ISPs), fled two applications with the CRTC regarding Decision 2010-802, which outlines the latest terms and conditions of usage-based billing (UBB) for Bell's wholesale Internet customers. CNOC's first application asks the CRTC to alter the portion of Decision 2010-802 that gives Bell permission to charge wholesale Internet customers the same UBB rates it charges retail Intemet customers. CNOC points out that wholesale and retail UBB rates are the topic of an ongoing CRTC proceeding and the Commission should not set wholesale UBB rates unti that proceeding has concluded. CNOC’s second application asks the CRTC to immediately put on hold the implementation of UBB, outlined in Decision 2010-802, until the CRTC has ruled on CNOC's request to vary the decision CNOC has requested an expedited process but the CRTC has made no indication that it will grant this. Consequently, it remains unclear as to when the CRTC will issue a decision, though some of CNOC’s primary concerns were addressed in the CRTC's January 25" decision. 0000768.21(1)(a) 8.21(1)(b) Summary of Telecom Decision CRTC 2011-44 CRTC sets wholesale UBB rates for telcos and cablecos Ina decision issued January 25, 2011, the CRTC set wholesale usage-based billing (UBB) rates 15 percent below retail UBB rates, for both the telephone and cable companies’ wholesale Internet access services. UBB allows Internet service providers (ISPs) to charge customers for exceeding the monthly usage of data transfer permitted with their broadband Internet package. Small ISPs often differentiate their retail Internet services from those of the large telephone and cable companies by offering plans with high or unlimited usage amounts. The CRTC concluded that, under a UBB framework, small ISPs would not be able to continue differentiating their services without discounted wholesale UBB rates. During the public proceeding leading to the decision, the Canadian Network Operators Consortium (CNOC), formed by a group of small ISPs, proposed that wholesale UBB rates should be discounted by a minimum of 50 percent relative to retail rates. UBB rates are to be implemented by March 1, 2011. The decision can stil be appealed to the CRTC and Cabinet, 0000778.21(1)(a) 8.21(1)(b) Summary of Telecom Decision CRTC 2011-44 CRTC sets wholesale UBB rates for telcos and cablecos Ina decision issued January 25, 2011, the CRTC set wholesale usage-based billing (UBB) rates 15 percent below retail UBB rates, for both the telephone and cable companies’ wholesale Intemet access services. UBB allows Internet service providers (ISPs) to charge customers for exceeding the monthly usage of data transfer permitted with their broadband Internet package. Small ISPs often differentiate their retail Internet services from those of the large telephone and cable companies by offering plans with high or unlimited usage amounts. The CRTC concluded that, under a UBB framework, small ISPs would not be able to continue differentiating their services without discounted wholesale UBB rates. During the public proceeding leading to the decision, the Canadian Network Operators Consortium (CNOC), formed by a group of small ISPs, proposed that wholesale UBB rates should be discounted by a minimum of 50 percent relative to retail rates. UBB rates are to be implemented by March 1, 2011. The decision can still be appealed to the CRTC and Cabinet. 000078Williamson, Steve: SPS Tuesday, January 25, 2011 10:39 Selch, Kevin: SPS ‘Scott, Adam: SPS; Miller, Pamela: SPS RE: CRTC decision dates Kevin, Here's our best projections. Note as well the CRTC is expected to issue a decision on the structure and mandate of the Commissioner of Complaints for Telecommunications Services tomorrow - Jan 26. Wholesale (speed matching I!) - May/June 2011 (further process established, record closes April 19) Obligation to Serve - by March 11 2011 UBB - wholesale rates for additional usage beyond data cap - today Jan 25 2011 UBB - review and vary of October 28 2010 Decision (Telecom Decision CRTC 2010-802) - some issues could be resolved in today's UBB decision UBB - deadline for Cabinet appeal of October 28, 2010 Decision (Telecom Decision CRTC 2010-802) - Jan 27 2011 ISP-BDUs - Supreme Court yet to decide whether to grant leave to appeal, projected date for the determination uncertain - should be relatively soon Sent: Monday, January 24, 2011 5:12 PM To: Williamson, Steve: SPS Cc: Miller, Pamela: SPS ‘Subject: CRTC decision dates HiSteve, ‘These are the CRTC decision dates were are tracking in ADMO for Q1 Wholesale (speed matching I!)-before Mar.; Obligation to serve - Mar. 11; 613 000079UBB - Apr. 7; UBB-review & vary - May 1; and IPS-BDUs - Supreme Court? ‘Marta asked that I check with you as she thought some of these dates may have changed. Could you please confirm? Thanks, Kevin Kevin Selch Senior Policy Advisor | Conseiller principal Office of the Assistant Deputy Minister | Bureau de la Sous-ministre adjointe Strategic Policy Sector | Secteur de la politique stratégique Industry Canada | Industrie Canada 235 Queen Street, Ottawa ON K1A OHS | 235, rue Queen, Ottawa ON K1A OHS, Kevin Selch@ic.gc.ca Telephone | Téléphone 613-941-4309 Facsimile | Télécopieur 613-947-2059 Teletypewriter | Téleimprimeur 1-866-694-8389 Government of Canada | Gouvernement du Canada eit ‘0000808.21(1)(b) Scott, Adam: SPS Scott, Adam: SPS Wednesday, January 26, 2011 8:15 Selch, Kevin: SPS; Miler, Pamela: SPS; Williamson, Steve: SPS Waring, Jeff: IC-MIN (NCR-RCN); Halucha, Paul: IC-DM-IC-SM; Levesque, Joanne: SPS RE: UBB-URGENT Confirmed. Note that we gave our input for media lines to CMB yesterday following the crIc's follow-up decision, Original Message From: Selch, Kevin: SPS Sent: Wednesday, January 26, 2011 6:04 AN Miller, Pamela: SPS; Scott, Adam: SPS; Williamson, Steve: SPS Cc: Waring, Jeff: IC-MIN (NCR-RCN); Halucha, Paul: IC-DM-IC-SM; Levesque, Joanne: SPS Subject: Re: UBB-URGENT Would appreciate DGTP confirmation, however, my notes from DGTP indicate UBB - deadline for Cal 2010-802) - Jan 27 2011 jet appeal of October 28, 2010 Decision (Telecom Decision CRTC Original Message ----- Prom: Selch, Kevin: SPS To: Miller, Pamela: SPS; Scott, Adam: SPS; Williamson, stev: Ce: Waring, Jeff: IC-MIN (NCR-RCN); Halucha, Paul: IC“DM. Sent: Wed Jan 25 08:02:04 2011 Subject: Fw: UBB-URGENT sps “SM; Levesque, Joanne: SPS Please see below. Need response in next 30 minutes. s--- Original Message ----- From: Waring, Jeff: IC-MIN (NCR-RCN) To: Selch, Kevin: SPs Ce: Halucha, Paul: IC-DM-IC-sM Sent: Wed Jan 26 07:57:17 2011 Subject: UBB-URGENT Kevin, Can you ask Pam or Adam Scott to remind me what the deadline is for GoC to appeal UBB decision? Has it passed? Need this in next 30 mins. CMB is also looking for updated media lines on this. Jett 580 000081s.24(1)(a) 8.24(1)(b) eee From: Scott, Adam: SPS Sent: Wednesday, January 26, 2011 8:39 To: Halucha, Paul: IC-DM-IC-SM ‘Subject: FW: Draft for review -- UBB media lines Attachments: 222925-UBB Media Lines-2-SITT-STIT.DOC Attached doc is what we sent to CMB. 222925-UBB Media Lines-2-SITT-... , Adam: SPS Tuesday, January 25, 2011 4:08 PM Mayer, Richard: CMB-DGCM; Williamson, Steve: SPS; Todoran, Andreea: SPS Merah, Maureen: CMB-DGCM RE: Draft for review ~ UBB mesa ines Mayer, Richard: CHE-DGCM ‘Tuesday, January 25, 2011 3:45 PM Williamson, Steve: SPS; Scot, Adar: SPS; Tadoran, Andreea: SPS McGrath, Maureen: CMB-OGCM FW: Draft for review ~ UBB media tines 565 00082s.21(t(a) $-24(1)(b) Thanks.....Richard From: Williamson, Steve: SPS Sent: January 25, 2011 1:45 PM To: Mayer, Richard: CMB-DGCM Ce: Scott, Adam: SPS; Todoran, Andreea: SPS Subject: FW: Draft for review ~- UBB media lines Richard - here's our input on the UBB media lines << File: 222925-UBB Media Lines-2-SITT-STIT.DOC >> From Scott, Adam: SPS ‘Sent: Tuesday, January 25, 2011 1:37 PM To: aliamson, Steve: SPS ce: TTodoran, Andreea: SPS; Falcone, Andrew: SPS; Johnston, Susan: SPS Subject: RE: Draft for review ~ UBB media ines Looks good. Thanks. Can be flipped to Comms, who will then send it back to us (Pam) for approval. From Wiliarson, Steve: SPS Sent: ‘Tuesday, January 25, 2011 1:28 PM To: Scott, Adam: SPS ce: “Todoran, Andreea: SPS; Falcone, Andrew: SPS; Johnston, Susan: SPS Subject: FW: Draft for review ~ UBB media lines Here's a cut at new lines. Note that the first few bullets reflect messaging in the master docket. From "Todoran, Andreea: SPS 566 000083,s.24(1)(a) Tuesday, January 25,2015 1:24 PM Wilamsen, Steve: 8.21(1)(b) Falcone, Acre: SPS; ohnston, Susan: RE: ra for review ~ UBB med Ines Here are the revised media lines for your review: << File: 222925-UBB_Media_Lines-R-SITT-STIT.DOC.DRF >> ‘Andreea Wilamson, Steve: SPS Tuesday, January 25, 2011 10:03 AM Mayer, Richard: CMB-DGCM Todoran, Andreea: SPS; McGrath, Maureen: CMB-DGCM; Scot, Adam: SPS; Johnston, Susan: SPS; Falcone, Andrew: SPS. Subject: RE: Draft for review ~ UB media lines CRTC Decisions usually posted at 11 am. Will take a quick scan of the decision then send edits. Frome ayer, Richard: CMB-DGCM Sent: “Tuesday, January 25, 2011 9:58 AM To: Witiamson, Steve: SPS ce: “Tadoran, Andreea: SPS; McGrath, Maureen: CMB-DGOM; Scott, Adam: SPS; Johnston, Susan: SPS; Falcone, Andrew: SPS Subject: RE: Draft fr review -- UBB media lines ‘Steve — we need to close on this today. | don't see any evidence yet of a CRTC decision, but maybe it’s just not posted yet. Could you/team please provide your suggested edits? Thanks... Richard From: Williamson, Steve: SPS Sent: January 24, 2011 4:20 PM To: Mayer, Richard: CMB-DGCM Ce: Todoran, Andreea: SPS; McGrath, Maureen: CMB-DGCM; Scott, Adam: SPS; Johnston, Susan: SPS; Falcone, Andrew: SPs ‘Subject: RE: Draft for review -- UBB media lines Richard, These will need some edits. However, a CRTC decision on aspects of UBB is expected tomorrow. It would be prudent to wait for new lines until we see that decision Steve ayer, Richard: CMB DGCH Monday, January 24, 2011 12:48 PM Johnston, Susan: SPS; Falcone, Andrew: SPS “Tocorany Andreea: SPS; Wiliamson, Steve: SPS; McGrath, Maureen: CMB-DGCM RE: Draft for review -- UBB media lines High ‘Susan, Andrew We have received a suggestion from MinO to update the UBB jines in conjunction with the CRTC decision review period ending. Could you please take a look and provide comments 367 ‘00084Thanks...Richard 8.21(1)(a) From: Johnston, Susan: SPS 8.21(1)(b) Sent: January 17, 2011 4:18 PM To: Mayer, Richard: CMB-DGCM Cc: Todoran, Andreea: SPS; Williamson, Steve: SPS ‘Subject: FW: Draft for review -- UBB media lines Hi, Richard, ‘One addition to the background section, highlighted in yellow below. Steve has approved -- we will pursue with Pam. From: Williamson, Steve: SPS Monday, January 17, 2011 4:07 PM Jotinston, Susan: SPS; Todoran, Andreea: SPS RE: Draft for review ~- UBB media lines Looks good From: ‘Todoran, Andreea: SPS ~ Sent: Monday, January 17,2011 3:56 PM Tor Jahon, Susan: SPS Subject: RE: UBB med lines Draft January 17, 2011 568 ‘00085From: Sobnston, Susan: SPS Sent: Honday, January 17, 2081 3:20 eM To: Mayer, Richard: CMB-OGCM ce: “Todoran, Andreea: SPS Subject: RE: UBB media tnes Thanks, Richard 8.21(1)(a) Will double-check and be back to you shorty. 5.24(1)(b) From: Mayer, Rchard: CNB-DGCM Sent: Monday, January 17, 2011 3:19 PM To: Johnston, Susan: SPS Subject: FW UBB meca lines Importance: High Hi Susan Andrew's email refers to you....'m_quite sure, but just checking that there have been no changes to this file since November. ‘Thanks. Richard From: Mayer, Richard: CMB-DGCM Sent: January 17, 2011 3:10 PM To: Falcone, Andrew: SPS; Scott, Adam: SPS Ce: McGrath, Maureen: CMB-DGCM Subject: UBB media lines Importance: High Hi— we've got a request for usage-based billing ines. Just a quick check to see if these lines from November are stil ok (ake it decision can still be reviewed until end of Jan). These have been previously approved by Pam. 569 ‘00086Prepared by: Richard Mayer, Communications and Marketing Branch, 613-947-7802 Key Contact: Andrew Falcone, Telecommunications Policy Branch, SPS, 613-998-4314 Approved by: Adam Scott, Director, Telecommunications Policy Branch, SPS, 613-998-4224 Date: January 17, 2011 sr ‘00088Scott, Adam: SPS 8.24(4)(b) Scott, Adam: SPS Wednesday, January 26, 2011 8:54 Halucha, Paul: IC-DM-IC-SM FW: approval for UBB Media Lines High Attachments: ML-UBB Media Lines Jan11 v4.D0C. a) “AL-UBB Media Lines, JanL v4.00, From: Mayer, Richard: CMB-DGCM Sent: Wednesday, January 26, 2011 8:48 AM To: Miller, Pamela: SPS Ce: Scott, Adam: SPS; McGrath, Maureen: CMB-DGCM, Subject: approval for UBB Media Lines Importance: High Hi Pam — for your approval, attached and pasted below are updated media lines for usage-based billing, They have been approved by Adam ‘Thanks...Richard 947-7802 Draft January 26, 2011 MEDIA LINES CRTC RULING ON USAGE-BASED BILLING ISSUE To address questions conceming CRTC decisions on usage-based billing (Decisions 2010-802, 2010-255, and 2011-44), ss9 000097KEY MESSAGES * Canadians have embraced the Internet as a fundamental tool in their dally ives, continually connecting more devices to the Internet and using more Internet-enabled applications. * _Itis understandable that individuals become concerned when their ability to expand their Internet usage is constrained. + __ There is also the reality that the volume of internet traffic continues to increase dramatically, sometimes to the point where network service providers’ capacity is insufficient, * The CRTC has put in place a framework to guide service providers in managing Internet traffic, and has ruled that all, Internet service providers may employ economic measures, such as usage-based billing, to manage traffic, + Toensure that wholesale usage-based biling rates are just and reasonable, the CRTC set these rates at a 15 Percent discount relative to carriers’ retail usage-based billing rates, ‘+ Given that the CRTC's new decision concerning usage-based billing wholesale rates can be reviewed by the Governor in Council, it would be inappropriate to comment further. Responsive messages +, The Government of Canada is committed to encouraging choice and competition in wireless and Internet markets. ‘That's why we have recently held spectrum auctions to allow more companies to provide consumers with more options and are looking at additional auctions in the future. + __Usage-based billing is the standard for many other services, like electricity and water, where the amount you pay is based on the amount you use; not just in Canada, but in the US and other jurisdictions as well BACKGROUND 560 ‘00098Usage-based billing (UBB) allows Internet service providers (ISPs) to charge customers for exceeding the monthly usage of data transfer permitted with their broadband Internet package. Bell has already introduced UBB for the majority of its rotailIntemet customers. The CRTC is allowing the Bell companies to apply UBB on their wholesale customers who lease part of Bell's network in order to provide their own retail Intemet products. On October 28, 2010, the CRTC released a UBB decision which 1. _ allowed the Bell companies to implement UBB for wholesale customers without having to move all their current retail customers off of unlimited plans; 2. allowed the Bell companies to waive UBB for promotional offers (e.g, allow a temporary unlimited broadband promotion); and 3. set additional usage overage charges at levels comparable to the retail charges, pending a further proceeding on rates ‘The CRTC's most recent UBB decision of January 25, 2011, is the result of that proceeding. The CRTC determined that wholesale UBB rates should be set 15 percent lower than retail UBB rates for the telephone and cable companies’ wholesale Intemet services. Discounted wholesale UBB rates are to be implemented by March 1, 2011. The decision can be appealed to Cabinet within 90 days of the ruling date therefore it would not be to comment on the matter. ‘Small ISPs are generally not pleased with the UBB decisions. A group of them have filed an application with the CRTC formally seeking that the decision of October 28, 2010, be varied. The CRTC has yet to issue decision on this request. MEDIA RELATIONS OFFICE 613-943-2502 PREPARATION AND APPROVALS Prepared by: Richard Mayer, Communications end Marketing Branch, 613-947-7802 Key Contact: Steve Wiliamson, Telecommunications Policy Branch, SPS, 613-990-8631 Approved by: Adam Scott, Director, Telecommunications Policy Branch, SPS, 613-998-4224 Date: January 26, 2011 soi ‘000908.21(1)(a) 8.21(1)(b) Scott, Adam: SPS From: Scott, Adam: SPS Sent: Wednesday, January 26, 2011 9:07 To: Waring, Jeff: IC-MIN (NCR-RCN); Selch, Kevin: SPS; Miller, Pamela: SPS; Williamson, Steve: SPS ce: Halucha, Paul: IC-DM-IC-SM; Levesque, Joanne: SPS. Subject: RE: UBB-URGENT Yesterday's decision is a narrow one - setting the regulated discount for the wholesale rate at 15¥ below the retail rate. =+++-Original Message: From: Waring, Jeff: IC-MIN (NCR-RCN) Sent: Wednesday, January 26, 2011 8:56 AM To: Scott, Adam: SPS; Selch, Kevin: SPS; Miller, Pamela: SPS; Wil Ce: Halucha, Paul: IC-DM-IC-SM; Levesque, Joanne: SPS Subject: RE! UBB-URGENT gon, Steve: SPS Pam, Adam Original Message From: Scott, Adam: SPS Sent: Wednesday, January 26, 2011 8:15 AM To: Selch, Kevin: SPS; Miller, Pamela: SPS; Williamson, Steve: SPS Ce: Waring, Jeff: TC-MIN (NCR“RCN); Halucha, Paul: IC-DM-IC-SM; Levesque, Joanne: SPS Subject: RE: UBB-URGENT Confirmed. Note that we gave our input for media lines to CMB yesterday following the CRIC's narrow follow-up decision. Original Message----- From: Selch, Kevin: SPS Sent: Wednesday, January 26, 2011 8:04 AM To: Miller, Pamela: SPS; Scott, Adam: SPS; Williamson, steve: SPS Ce: Waring, Jeff: IC-MIN (NCR-RCN); Halucha, Paul: IC-DM-IC-SM; Levesque, Joanne: SPS Subject: Re: UBB-URGENT Would appreciate DGTP confirmation, however, my notes from DGTP indicate UBB - deadline for Cabinet appeal of October 28, 2010 Decision (Telecom Decision CRTC 2010-802) - Jan 27 2011 original Message From: Selch, Kevin: SPS To: Miller, Pamela: SPS; Scott, Adam: SPS; Williamson, Steve: SPS Cc: Waring, Jeff: IC-MIN (NCR-RCN); Halucha, Paul: IC“DM-IC-SM; Levesque, Joanne: SPS Sent: Wed Jan 26 08:02:08 2011 387 000102Subject: Fw: UBB-URGENT Please see below. Need response in next 30 minutes - Original Message - From: Waring, Jeff: IC-MIN (NCR-RCN) To: Selch, Kevin: SPS Cc: Halucha, Paul: IC-pM-1c-sm Sent: Wed Jan 26 07:57:17 2011 Subject: UBB-URGENT Kevin, Can you ask Pam or Adam Scott to remind me whi decision? Has it passed? the deadline is for Go to appeal UBB Need this in next 30 mins. CMB is also looking for updated media lines on this. Jett 558 000103Scott, Adam: SPS Halucha, Paul: IC-DM-IC-SM Sent: ‘Wednesday, January 26, 2011 9:47 s.21(1)(a) To: Scott, Adam: SPS; Waring, Jeff: IC-MIN (NCR-RCN); Miller, Pamela: SPS s.24(1}(b) Ce: Williamson, Steve: SPS; Selch, Kevin: SPS. ‘ Subject: RE: Scott, Adam: SPS Wednesday, January 26, 2011 9:38 AM Felucha, Paul: IC-DM-IC-SM; Waring, Jeff: IC-MIN (NCR-RCN); Miler, Pamela: SPS Wilimson, Steve: SPS; Sech, Kevin: SPS 549 001048.21(1)(a) Miller, Pamela: SPS 5.24/4bi Miller, Pamela: SPS Wednesday, January 26, 2011 10:31 Cliff, Amanda: PCH; Downie, Colette: SPS ‘Scott, Adam: SPS; Peets, Gerard: SPS; DiFrancesco, Janet: SITT-STIT; Pierre, Mesmin ECOM-DGCE Subject: Invitation from Heritage Committee Here is a list of potential questions, from Telecommunications Policy and Ecom’s perspective. We will send input to the deck around noon, 0001078.21(1)(a) Scott, Adam: SPS $.21(1(b) Scott, Adam: SPS Wednesday, January 26, 2011 13:08 Miller, Pamela: SPS Prous. Julie: SPS: Williamson Steve: SPS: Tadoran, Andreea: SPS; Seich, Kevin: SPS Subject: From various existing materials we have pulled together the atlached package which covers the three CRTC UBB. decisions (yesterday's was only the most recent and most narrowiy focussed) and also notes that small ISPs have asked the CRTC to review and vary the Oct 28 decision; though some of their concerns were addressed in the January 25, Gecision, a response to the small ISP request may stil be forthcoming, For completeness, we have included a timeline and a copy of our most recent QP Card, ‘Adam Scott Director | Directeur Business and Regulatory Analysis | Analyses industrielle et réglementaire Telecommunications Policy Branch | Politique des télécommunications Industry Canada | Industrie Canada 300 Siater Street, Ottawa ON K1A 0C8 | 300, rue Slater, Ottawa ON K1A OCB ‘Adam Scott@ic.ac.ca Telephone | Téléphone 613-990-4224 Facsimile | Télécopieur 613-941-1390 Teletypewriter | Téléimprimeur 1-866-694-6389 Government of Canada | Gouvernement du Canada 525 00109Scott, Adam: SPS Wednesday, January 26, 2011 17:01 .20(1)(C) Miller, Pamela: SPS; Williamson, Steve: SPS 8.20(1Ke) RE: 8.21(1)(a) 8.21(1)(b) Attachments: Telecommunications Jan 18.pdf ‘elecommunications Jan 18.pdf ‘We will look at caps used by various companies to aet a better understandina of iust how limitina far nat) the caps are, ‘Actually, Steve just flipped me a BMO piece on caps and charges imposed - see attached jiller, Pamela: SPS Sent: Wednesday, January 26, 2011 4:35 PM To: Scott, Adam: SPS; Williamson, Steve: SPS Subject: Fw: Itwould be useful to have a summary of caps under different plans for Bell and Rogers. Pam From: Gifflan, Fiona: DGSO-DGOGS To: Miller, Pamela: SPS; McDonald, Helen: SITT-STIT; Sent: Wed Jan 26 15:06:14 2011 Subject: RE: incoletto, Susan: SITT-STIT Fiona 514 0001108.21(1)(a) 8.24(1\(b) From: Miller, Pamela: SPS ‘Sent: Wednesday, January 26, 2011 2:39 PM To: McDonald. Helen: SITT-STIT: Gilfillan. Fiona: DGSO-DGOGS; Bincoletto, Susan: SITT-STIT Subject: FW: 1 You may be interested in the info below on Usage Based Billing Pam Miller, Pamela: SPS Sent: Wednesday, January 26, 2011 2:24 PM To: Morgan, Marta: SPS; Selch, Kevin: SPS; Connell, John: SPS; Levesque, Joanne: SPS; Poirier, Anne: SPS Cc: Scott, Adam: SPS; Todoran, Andreea: SPS; Williamson, Steve: SPS Subject: For approval From various existing materials we have pulled together the attached package which provides an overview of timelines, and the general issue (in the QP card ) and covers the three CRTC UBB decisions, including yesterday's. Small ISPs have asked the CRTC to review and vary the Oct 28 decision, though some of their concerns were addressed in the January 25 decision, a response to the small ISP request may still be forthcoming, and the potential of GIC appeal is open until tomorrow. Pam 515 00111Page | of | 8.24(1)(a) s.24(1)(b) Todoran, Andreea: SPS From: Miller, Pamela: SPS Sent: Wednesday, January 26, 2011 13:13 To: Scott, Adam: SPS. Ce: Proulx, Julie: SPS; Williamson, Steve: SPS; Todoran, Andreea: SPS; Selch, Kevin: SPS ‘Subject: Re Are there attachments? From: Scott, Adam: SPS To: Miller, Pamela: SPS Ce: Proulx, Julie: SPS; Williamson, Steve: SPS; Todoran, Andreea: SPS; Selch, Kevin: SPS Sent: Wed Jan 26 13:08:10 2011 Subject: From various existing materials we have pulled together the attached package which covers the three CRTC UBB decisions (yesterday's was only the most recent and most narrowly focussed) and also notes that small ISPs have asked the CRTC to review and vary the Oct 28 decision; though some of their concems were addressed in the January 25 decision a response to the small ISP requesi may still be forthcoming. For completeness, we have included a timeline and a copy of our most recent QP Card. ‘Adam Scott Director | Directeur Business and Regulatory Analysis | Analyses industrielle et réglementaire Telecommunications Policy Branch | Politique des telécommunications Industry Canada | Industrie Canada 300 Slater Street, Ottawa ON K1A 0C8 | 300, rue Slater, Ottawa ON K1A 0C8 ‘Adam Scott@ic. gc ca Telephone | Telephone 613-990-4224 Facsimile | Télécopieur 613-941-1399 Teletypewrter | Téléimprimeur 1-866-694-8389 Government of Canada | Gouvernement du Canada 2011-02-28 CePage 1 of 3 Miller, Pamela: SPS From: Miller, Pamela: SPS Sent: Wednesday, January 26, 2011 9:12, To: Mayer, Richard: CMB-DGCM Cc: Scott, Adam: SPS; McGrath, Maureen: CMB-DGCM Subject: Re: approval for UBB Media Lines Approved From: Mayer, Richard: CMB-DGCM To: Miller, Pamela: SPS Cc: Scott, Adam: SPS; McGrath, Maureen: CMB-DGCM Sent: Wed Jan 26 08:47:54 2011 Subject: approval for UBB Media Lines Hi Pam - for your approval, attached and pasted below are updated media lines for usage-based billing ‘They have been approved by Adam ‘Thanks...Richard 947-7802 Draft January 26, 2011 MEDIA LINES CRTC RULING ON USAGE-BASED BILLING ISSUE To address questions concerning CRTC decisions on usage-based billing (Decisions 2010-802, 2010-255, and 2011-44) KEY MESSAGES © Canadians have embraced the Internet as a fundamental tool in their daily lives, continually connecting more devices to the Internet and using more Intemet-enabled applications, + Itis understandable that individuals become concerned when their ability to expand their Internet usage is constrained + There is also the reality that the volume of Internet traffic continues to increase dramatically, sometimes to the point where network service providers’ capacity is insufficient + The CRTC has put in place a framework to guide service providers in managing Internet traffic, and has ruled that all Internet service providers may employ economic measures, such as usage-based billing, to manage traffic. + To ensure that wholesale usage-bases billing rates are just and reasonable, the CRTC set these rates at a 15 percent discount relative to carriers’ retail usage-based billing rates, + Given that the CRTC’s new decision concerning usage-based billing wholesale rates can be reviewed by the Governor in Council, it would be inappropriate to comment further. 000125 2011-02-28Page 2 of 3 Responsive messages +The Government of Canada is committed to encouraging choice and competition in wireless and Internet markets. That's why we have recently held spectrum auctions to allow more companies to provide consumers with more options and are looking at additional auctions in the future + Usage-based billing is the standard for many other services, like electricity and water, where the amount you pay is based on the amount you use; not just in Canada, but in the US and other jurisdictions as well 000126 2011-02-23Page 3 of 3 BACKGROUND Usage-based billing (UBB) allows Internet service providers (ISPs) to charge customers for exceeding the monthly usage of data transfer permitted with their broadband Internet package. Bell has already introduced UBB for the majority of its retail Internet customers. The CRTC is allowing the Bell ‘companies to apply UBB on their wholesale customers who lease part of Bell's network in order to provide their own retail Internet products. On October 28, 2010, the CRTC released a UBB decision which: 1, allowed the Bell companies to implement UBB for wholesale customers without having to move all their current retail customers off of unlimited plans; 2. allowed the Bell companies to waive UBB for promotional offers (e.g. allow a temporary unlimited broadband promotion): and 3. set additional usage overage charges at levels comparable to the retail charges, pending a further proceeding on rates The CRTC’s most recent UBB decision of January 25, 2011, is the result of that proceeding. The CRTC determined that wholesale UBB rates should be set 15 percent lower than retail UBB rates for the telephone and cable companies’ wholesale Internet services. Discounted wholesale UBB rates are to be implemented by March 1, 2011. The decision can be appealed to Cabinet within 90 days of the ruling date therefore it would not be to comment on the matter. ‘Small ISPs are generally not pleased with the UBB decisions. A group of them have filed an application with the CRTC formally seeking that the decision of October 28, 2010, be varied. The CRTC has yet to issue a decision on this request. MEDIA RELATIONS OFFICE 613-943-2502 PREPARATION AND APPROVALS Prepared by: Richard Mayer, Communications and Marketing Branch, 613-947-7802 Key Contact: Steve Williamson, Telecommunications Policy Branch, SPS, 613-990-8631 Approved by: Adam Scott, Director, Telecommunications Policy Branch, SPS, 613-998-4224 Date: January 26, 2011 000127 2011-02-28Scott, Adam: SPS Scott, Adam: SPS Wednesday, January 26, 2011 9:15 ) Williamson, Steve: SPS; Todoran, Andreea: SPS. Subject: FW: approval for UBB Media Lines Importaneé High Attachments: ML-UBB Media Lines Jan11 v4.00C ay AL-UBB Media Lines Jani 4.00. ‘Adam Scott Director | Directeur Business and Regulatory Analysis | Analyses industrielle et réglementaire ‘Telecommunications Policy Branch | Politique des télécommunications Industry Canada | Industrie Canada 300 Siater Street, Ottawa ON K1A 0C8 | 300, rue Slater, Ottawa ON KIA 0C8 ‘Adam Scott@ic.ac.ca Telephone | Téléphone 613-990-4224 Facsimile | Télécopieur 613-941-1399 Teletypewriter | Téléimprimeur 1-866-694-8389 Government of Canada | Gouvernement du Canada From: Mayer, Richard: CMB-DGCM Sent: Wednesday, January 26, 2011 8:48 AM To: Miller, Pamela: SPS Ce: Scott, Adam: SPS; McGrath, Maureen: CMB-DGCM Subject: approval for UBB Media Lines Importance: High Hi Pam — for your approval, attached and pasted below are updated media lines for usage-based billing. They have been approved by Adam Thanks...Richard ‘947-7802 Draft January 26, 2011 000128MEDIA LINES CRTC RULING ON USAGE-BASED BILLING ISSUE To address questions concerning CRTC decisions on usage-based billing (Decisions 2010-802, 2010-255, and 2011-44) KEY MESSAGES * Canadians have embraced the Internet as a fundamental tool in their daily ives, continually connecting more devices to the Internet and using more Internet-enabled applications. + _Itis understandable that individuals become concerned when their ability to expand their Internet usage is constrained. + There is also the reality that the volume of Internet traffic continues to increase dramatically, sometimes to the point where network service providers’ capacity is insufficient. * The CRTC has put in place a framework to guide service providers in managing Intemet traffic, and has ruled that all Internet service providers may employ economic measures, such as usage-based billing, to manage traffic. + Toensure that wholesale usage-based billing rates are just and reasonable, the CRTC set these rates at a 15 percent discount relative to carriers’ retail usage-based billing rates. ‘+ Given that the CRTC’s new decision concerning usage-based billing wholesale rates can be reviewed by the Governor in Council, it would be inappropriate to comment further. Responsive messages + __ The Government of Canada is committed to encouraging choice and competition in wireless and Internet markets. That's why we have recently held spectrum auctions to allow more companies to provide consumers with more options 552 000129and are looking at additional auctions in the future. = _Usage-based billing is the standard for many other services, like electricity and water, where the amount you pay is based on the amount you use; not just in Canada, but in the US and other jurisdictions as well BACKGROUND Usage-based billing (UBB) allows Internet service providers (ISPs) to charge customers for exceeding the monthly usage of data transfer permitted with their broadband Internet package. Bell has already introduced UBB for the majority of its retail Internet customers. The CRTC is allowing the Bell companies to apply UBB on their wholesale customers who lease part of Bel’s network in order to provide their own retail Internet products. (On October 28, 2010, the CRTC released a UBB decision which: 1. allowed the Bell companies to implement UBB for wholesale customers without having to move all their current retail customers off of unlimited plans; 2. allowed the Bell companies to waive UBB for promotional offers (e.g. allow a temporary unlimited broadband promotion); and 3. set additional usage overage charges at levels comparable to the retail charges, pending a further proceeding on rates ‘The CRTC’s most recent UBB decision of January 25, 2011, is the result of that proceeding. The CRTC determined that wholesale UBB rates should be set 15 percent lower than retail UBB rates for the telephone and cable companies’ wholesale Internet services. Discounted wholesale UBB rates are to be implemented by March 1, 2011. The decision can be appealed to Cabinet within 90 days of the ruling date therefore it would not be to comment on the matter. ‘Small ISPs are generally not pleased with the UBB decisions. A group of them have filed an application with the CRTC formally seeking that the decision of October 28, 2010, be varied. The CRTC has yet to issue a decision on this request. MEDIA RELATIONS OFFICE 613-943-2502 PREPARATION AND APPROVALS. 553 000130Prepared by: Richard Mayer, Communications and Marketing Branch, 613-947-7802 Key Contact: Steve Williamson, Telecommunications Policy Branch, SPS, 613-990-8631 Approved by: Adam Scott, Director, Telecommunications Policy Branch, SPS, 613-998-4224 Date: January 26, 2011 554 000131Draft January 26, 2011 MEDIA LINES CRTC RULING ON USAGE-BASED BILLING ISSUE To address questions conceming CRTC decisions on usage-based billing (Decisions 2010-802, 2010-255, and 2011-44), KEY MESSAGES + Canadians have embraced the Internet as a fundamental tool in their daily lives, continually connecting more devices to the Internet and using more Intemet-enabled applications, ‘+ Itis understandable that individuals become concerned when their ability to expand their Intemet usage is constrained ‘+ There is also the reality that the volume of Internet traffic continues to increase dramatically, sometimes to the point where network service providers’ capacity is insufficient +The CRTC has put in place a framework to guide service providers in managing Internet traffic, and has ruled that all Internet service providers may employ economic measures, such as usage-based billing, to manage traffic. * To ensure that wholesale usage-based billing rates are just and reasonable, the CRTC set these rates at a 15 percent discount relative to carriers’ retail usage-based billing rates. + Given that the CRTC's new decision concerning usage-based billing wholesale rates can be reviewed by the Governor in Council, it would be inappropriate to comment further. Responsive messages +The Government of Canada is committed to encouraging choice and competition in wireless and Internet markets. That's why we have recently held spectrum auctions to allow more companies to provide consumers with more options and are looking at additional auctions in the future. + Usage based biling is the standard for many other services, like electricity and water, where the amount you pay is based on the amount you use; not just in Canada, but in the US and other jurisdictions as well 000132BACKGROUND Usage-based billing (UBB) allows Internet service providers (ISPs) to charge customers for exceeding the monthly usage of data transfer permitted with their broadband Intemet package. Bell has already introduced UBB for the majority of its retail Internet customers. The CRTC is allowing the Bell companies to apply UBB on their wholesale customers who lease part of Bell's network in order to provide their own retail Internet products. On October 28, 2010, the CRTC released a UBB decision which: 1. allowed the Bell companies to implement UBB for wholesale customers without having to move alll their current retail customers off of unlimited plans; 2. allowed the Bell companies to waive UBB for promotional offers (e.g. allow a temporary unlimited broadband promotion); and 3. set additional usage overage charges at levels comparable to the retail charges, pending a further proceeding on rates The CRTC's most recent UBB decision of January 25, 2011, is the result of that proceeding. The CRTC determined that wholesale UBB rates should be set 15 percent lower than retail UBB rates for the telephone and cable companies’ wholesale Internet services. Discounted wholesale UBB rates are to be implemented by March 1, 2011 The decision can be appealed to Cabinet within 90 days of the ruling date therefore it would not be to comment on the matter. ‘Small ISPs are generally not pleased with the UBB decisions. A group of them have filed an application with the CRTC formally seeking that the decision of October 28, 2010, be varied. The CRTC has yet to issue a decision on this request. MEDIA RELATIONS OFFICE 613-943-2502 PREPARATION AND APPROVALS Prepared by: Richard Mayer, Communications and Marketing Branch, 613-947-7802 Key Contact: Steve Williamson, Telecommunications Policy Branch, SPS, 613-990-8631 Approved by: Adam Scott, Director, Telecommunications Policy Branch, SPS, 613-998-4224 Date: January 26, 2011 000133,SPM Items Request - Sept 24 Miller, Pamela: SPS From: Miller, Pamela: SPS Sent: Wednesday, January 26, 2011 10:34 To: Proulx, Julie: SPS Subject: RE: FOR YOUR APPROVAL - SPM Items Request ~ January 26, 2011 | already approved this at 9:15 From: Proulx, Julie: SPS Sent: Wednesday, January 26, 2011 10:28 AM To: Miller, Pamela: SPS Subject: FW: FOR YOUR APPROVAL - SPM Items Request -- January 26, 2011 Sale 613-998-4241 From: Todoran, Andreea: SPS Sent: Wednesday, January 26, 2011 10:27 AM To: Proulx, Julie: SPS Subject: FW: SPM Items Request ~- January 26, 2011 Jule ‘Adam has approved Andreea From: Wiliamson, Steve: SPS Sent: Wednesday, January 26, 2011 10:23 AM To: Scott, Adam: SPS; Todoran, Andreea: SPS Subject: RE: SPM Items Request -- January 26, 2011 I'm good with it From: Scott, Adam: SPS Sent: Wednesday, January 26, 2011 10:20 AM To: Todoran, Andreea: SPS; Williamson, Steve: SPS Subject: RE: SPM Items Request -- January 26, 2011 | ust had some minor edits (see track changes). Approved unless Steve has additional comments. From: Todoran, Andreea: SPS 00134 2011-0 Page | of 4SPM Items Request - Sept 24 Page 2 of 4 Sent: Wednesday, January 26, 2011 10:15 AM To: Scott, Adam: SPS; Williamson, Steve: SPS Subject: RE: SPM Items Request ~ January 26, 2011 Julie is standing by to drop in the system pending your approval From: Scott, Adam: SPS Sent: Wednesday, January 26, 2011 9:11 AM To: Williamson, Steve: SPS; Todoran, Andreea: SPS Subject: FW: SPM Items Request -- January 26, 2011 Will need to convert the media lines into a QP card in the system. Should be largely a cut and paste job, with maybe a bit of editing From: Demers, Suzanne: SPS Sent: Wednesday, January 26, 2011 8:43 AM To: DBR Users Subject: FW: SPM Items Request January 26, 2011 Hi This one is yours but not sure who We know what a person thinks not when he tells us what he thinks, but by his actions Suzanne Demers ‘Admin & Contracts Officer International Telecom Policy (DIT) 300 Slater, room 1684D Ottawa, Ontario K1A OCB (613) 952-6128 (613) 998-4530 From: Murray, Jennifer A.: CMB-DGCM Sent: Wednesday, Januaty 26, 2011 8:38 AM To: Kennedy, Sarah: CMB-DGCM; Stewart, Francoise: CMB-DGCM; Mellon, Derek: CMB-DGCM; ‘Baker, Anne- Marie: CB-BC; Beaudoin, Alain: SITT-STIT; 'Bisallon, Hélene: SPS"; Bourgoignie, Marie-Noé! Simon: ITO-OTI; Collier, Laura: SBTB-DGPET; Cyr-Séguin, Mélanie: SBTMS-SMTPE; D'Angelo, Diana: SADMO- BSMDP; Gennaro, Miriam: CMB-DGCM; King, Andrea: CPO-BSGP; Kowbel, Kathryn: ATIB-DGIA' Joanne: SPS; McDonald, Helen: SITT-STIT; McKay, Lise: RO-OR; MFP - Directors & Assistants; Miller, James: SIS- SSI; Monteith, Anne-Marie: SPS; Quevillon, Francine: CMB-DGCM; Racine, Diane: OCA-BC; Kania, Patricia: SIS-~ SSI; Rudeen, Line: SBTMS-SMTPE; Translation - Traduction: TB-BT; Bett, Jason: CMB-DGCM; Brown, Diana: IC- DM-IC-SM; CMB-CORPORATE COMMUNICATIONS; Davies, Mitch: SIS-SSI; DM Executive Committee - Members; Dupuis, Dave: OCA-BC; Halucha, Paul: IC-DM-IC-SM; Jubinville, Colette: IS-SI; Komesch, Kathy: SITT-STIT; Malboeuf, Julie: IC-DM-IC-SM; Meroni, Margaret: RO-OR; Milon, Russell: RO-OR; Patry, Line: OCA-BC; Ramsay, Shana: CPO-BSGP; Riopel, Josee: FDO (NCR-RCN); Ross, Darcy: SIS-SSI; Spurling, Brian: CMB-DGCM; St-Gelais, Diane: RO-OR (NCR-RCN); Thibeault, Paulette: SPS; Waring, Jeff: IC-MIN (NCR-RCN); Allusers - MOSSBT; CMB. 000135 90] 1-02-28SPM Items Request - Sept 24 ge 3 of 4 Media Relations; Sayarh, Omar: CMB-DGCM; Bellavance, Carl: IS-SI; Barsalou, Nicole: RO-OR (QUE); 8220, Fabiola: RO-OR (PAC); Gao, YuWel: RO-OR (PAC); Iannetta, Julie: RO-OR (ONT); Kinsey, Doug: RO-OR (PAC); Laliberté, Michéle: RO-OR; Lewis, James: CMB-DGCM; MacNeil, Shauna: RO-OR; Meikle, Julie: RO-OR (ATL); Popescu, Monica: RO-OR (QUE); Renoir, Philippe: RO-OR; ‘Roht, Melissa: RO-OR’; Roy, Jean-Pierre: RO-OR; Mackinnon, Kim: FDO (NCR-RCN); Norris, Phil: CB-8C; Gaudreau, Gail: RDR-ERD; Gonzalez, Steven: SPS; Kania, Patricia: SIS-SSI; Geerts, Line: CAS-SCA; Granger, Shannon: CAS-SCA; Gillis, Kelly: CAS-SCA; Fox, Christiane: CMB-DGCM; McGrath, Maureen: CMB-DGCM; Ramsay, Shana: CPO-BSGP; McConnell, Ken: FDO (NCR-RCN); Kingsbury, Dan: IS-SI; Bambrick, Elaine: SIS-SSI; Bellavance, Carl: 1S-SI; Bikal, Bassime: RO-OR (NCR-RCN); Boisseau, Ryan: IS-SI; Clarke, David: OCA-BC; Creasey, David: AEB-DGVE; Gagnier, Nicole: AEB-DGVE; Gaudreau, Gail: RDR-ERD; Graziadei, Connie: STATCAN; ‘Lamothe, Jacques: AEB-DGVE’; Gosselin, Carol: CAS- ‘SCA; Lemay, Jo-Anne: IRSP-DGEIPS; Levesque, Joanne: SPS; Malboeuf, Julie: IC-DM-IC-SM; Murphy, Maryanne: OCA-BC; Norris, Phi: CB-BC; Pedneault, Naomi: SITT-STIT; ‘Peterson, Kim: CB-BC'; Poirier, Anne: SPS; Prazeres, Simone: SITT-STIT; QP Administrator: SPS; Rae, Joanne: CIPO-OPIC; Waring, Jeff: IC-MIN (NCR-RCN); MacNeil, Shauna: RO-OR; Richard, Karen: SPS; Dooley, Matthew: SPS; Campbell, Sand: FedNor; LeClerc, Michel: CPO- BSGP; Menard, Linda: RO-OR; Johnston, Leigh: IC-MIN; Poirier, Kate: CMB-DGCM; CMB-Advisory; IS: ADMO; Malboeuf, Julie: IC-OM-IC-SM; Perrault, Patrick: RO-OR; Cooper, Roman: S1S-SSI; PAAB Group; Murphy, Darlene SIS-SSI (NCR-RCN); Ross, Darcy: SIS-SSI; Graziadei, Connie: STATCAN; 'Liz.Lovis@a.statcan.gc.ca’; Morrissette, Stacey: CPO-BSGP; Martel, Camille: CMB-DGCM; Bender, Tammy: FDO (ONT); Demers, Suzanne: SPS; Tomlinson, Marian: FDO; Choueiri, Charbel: SADMO-BSMDP; Dechman, Patricia: CB-BC; Williams, Peter: FedNor; @ coordinators; Bounhar, Younes: SPS; Cooper, Kathleen: SPS; CMB-Regional Comms Group; Mellon, Derek: CMB-DGCM; Maia, Ana: CPO-BSGP,; ‘Francesca. IACURTO@bdc.ca’; Cannalonga, Gisele: CORP; Mainville, Lots: IRSP-DGEIPS; Dagenais, Eric: SBTB-DGPET; Freamo, Janice: CMB-DGCM Ce: Brennan, Paula; ‘Connie Graviadel (connieg@rogers.blackberry.net)'; Graziadei, Connie: STATCAN; Lauriault, Douglas; 'Malboeuf, Jacqueline’; ‘ursula.gobel@sshrc.ca’; Mellon, Derek: CMB-DGCM; 'Liz.Lovis@a.statcan.gc.ca’; °Karen.Mihorean@statscan.gc.ca’; Adamson, Shannon: SPS ‘Subject: SPM Items Request - January 26, 2011 Bonjour! 2011-1-26 Question Period / Période des questions gp _/ Fiche parler aire ++ New QP Update: 2011: Yearof the Entrepreneur (SBTMS) hte infomedia ao caliclaricles/unrestricted/201 1/01/ic2011148786223. 68 htm hitowiyw infomedia gc caliclaticles/unrestricted/2011/01/ic201112321787883_3 htm 2- NewQP Update: CRTC: Usage-based biting (SPS) nto Jay inforedia gc caliclatcles/unrestrited/201 110'Vic201 11489500754 68. htm nito-ivww infomedia ac calclarticles/resticted/201 1/01Inau201116749675107 htm House Business / Travaux de la Chambre Nil report/ Rien a signaler Media Lines / tnfocapsules Nil report/ Rien a signaler 000136SPM Items Request - Sept 24 Page 4 of 4 Other / autre Nil report/ Rien & signaler mea: Monitoring / suivi des médii Nil report/ Rien & signaler ***Please be reminded that deadlines are 10.00 a.1n. in English and 10:30 a.m. in French Monday to Thursday for all QRT requests; 9:30 a.m. in English and 10:00 a.m. in French on Fridays. It is very important to advise me as soon as a card is completed. ***Rappel - Les délais opplicables @ toutes les demandes de préparation de la période des questions sont les suivants : 10h ds matin pour l'anglais et 10 h 30 pour le francais, du lundi au jeudi; 9h 30 du matin pour l'anglais et 10h pour le francais, le vendredi. lest trés important de m‘avertir dés qu'une fiche est terminée. 000137 2011-02-288.21(1)(b) Scott, Adam: SPS SS — From: Scott, Adam: SPS Sent: Thursday, January 27, 2011 8:43 To: Selch, Kevin: SPS Subject: RE: UBB Briefing Material ‘Thanks. I'll wait for a thumbs up from Halucha From: Selch, Kevin: SPS Sent: Thursday, January 27, 2011 8:42 AM To: Scott, Adam: SPS Subject: Re: UBB Briefing Material Itwent to DMO last night. From: Scott, Adam: SPS To: Selch, Kevin: SPS Sent: Thu Jan 27 08:21:02 2011 Subject: RE: UBB Briefing Material ‘Any sign ofthis moving up the ladder? From: Miller, Pamela: SPS Sent: Wednesday, January 26, 2011 2:24 PM To: Morgan, Marta: SPS; Selch, Kevin: SPS; Connell, John: SPS; Levesque, Joanne: SPS; Poirier, Anne: SPS Ce: Scott, Adam: SPS; Todoran, Andreea: SPS; Williamson, Steve: SPS Subject: UBB Briefing Material For approval - to send to DMO. From various existing materials we have pulled together the attached package which provides an overview of timelines, and the general issue (in the QP card ) and covers the three CRTC UBB decisions, including yesterday's. Small ISPs have asked the CRTC to review and vary the Oct 28 decision though some of their concems were addressed in the January 25 decision, a response to the small ISP request may still bbe forthcoming, and the potential of GIC appeal is open until tomorrow. 510 000140Pam su 00141UBB Briefing Material 8.24(4)(b) Todoran, Andreea: SPS From: Todoran, Andreea: SPS Sent: Thursday, January 27,2011 10:59 To: Miller, Pamela: SPS Subject: UBB Briefing Material Attachments: 223724-Package - UBB materials-1-SITT-STIT.DOC Please find attached the materials on UBB as requested. 2011-02-28 oe208-0102 uojsioep gan Area 'S09}9} PUE S098IqE9 10} 0) 9140 UMM UOR S912) GaN o}e8sa}04M UO -eondde 8213 SOND. 97-0102 (b¢-tL0z)uolsio9p gan, 0102 ‘zz AN uuorstoep aan Auen ‘meu Se8e9|a 140 8} 14D YisM uOR beoz ‘gz wer ~eoydde sayy oq Oboz ‘az Aew bLoz Aienuep sequieseq JeAWenON —Jeqa90 Jequiaideg —_isnBny Ane eunr Soye1 BEN e1eselo4M ee ssz-01L07 Sonne le a uoisiogp gan -er sig te (208 seseeja! 0149 0402) uorsioep aan COE ane ‘MOU S2889)9) 14D ‘0402 ‘82390 suolsioap ggN 1U9091 SOW BU} 0} pe] SJuane AlO}BINBed Jo Any y 000143Miller, Pamela: SPS From: Miller, Pamela: SPS Ser ‘Thursday, January 27, 2011 13:32 To: Scott, Adam: SPS. Subject: FW: Attachments: From: Waring, Jeff: IC-MIN (NCR-RCN) Sent: Thursday, January 27, 2011 12:21 PM To: Miller, Pamela: SPS; Scott, Adam: SPS Subject: FW: FYI Sent: Thursday, January 27, 2011 12:00 PM Page 1 of 1 8.20(1)(c) 8.21(1)(a) 8.21(1)(b) To: Waring, Jeff: IC-MIN (NCR-RCN); Noble, Christina: IC-MIN Subject: Hello Jeffery and Christina {onan information tnat 6 privileged, connaential ana exempt trom aisciosure under applicable law. I the reader ofthis message isnot the intended recipient, you are hereby notified thet any dissemination, distribution or copying ofthis Communication is strictly prohibited. Ifyou have recelves this communication in errar, please notify the sender Immediately by emall and delete the message. Thank you 2011-02-28 00144FW: - Usage Based Billing Miller, Pamela: SPS From: Miller, Pamela: SPS Sent: Thursday, January 27, 2011 14:01 To: Selch, Kevin: SPS Ce: Scott, Adam: SPS Subject: RE Usage Based Billing I believe so, Adam can confirm Selch, Kevin: SPS Sent: Thursday, January 27, 2011 1:58 PM To: Miller, Pamela: SPS Ce: Scott, Adam: SPS Subject: Fw: = Usage Based Billing Please see below and confirm. Thanks, Kevin From: Brown, Diana: IC-DM-IC-SM To: Selch, Kevin: SPS Ce: Waring, Jeff: 1C-MIN (NCR-RCN) Sent: Thu Jan 27 13:31:01 2011 Subject: FW: Usage Based Billing Kevin - pls confirm we can be ready From: Halucha, Paul: [COMICSM Sent: Thursday, January 27, 2011 12:25 PM To: Waring, Je: JOMIN (NCR-RCN}; Brown, Diana: IC-DMICSM Ce: Dingo, Diana: SAOMO-BSMOP Subject RE Usage Based Bling Check with sector if this is possible by that date, Paul From: Waring, Je: IC-MIN (NCR-RCN) Sent: Thursday, January 27, 2011 12:20 Pt ‘To: Halucha, Poul IC DM-ICSM; Beown, Diana: ICOM-ICSH Ce: OrAngelo, Diana: SADHO-SSMOP Subject: Fw sage Based Bling 2011-02-28 Thanks. O 000178 Page | of 2 8.21(1)(a) 8.21(1)(b)FW: Usage Based Billing Page 2 of 2 1 8.21(1)(a) reval 8.21(1)(b) From: Miler, Pamela: SPS Sent: Thursday, January 27, 2011 11:56 AM To: Halucha, Paul IC-DM-IC-SM; D’Angelo, Diana: SADMO-ESMDP; Brown, Dana: IC-DM-IC‘SM; Waring, Jef, C-MIN (NCR-RCN) (ce: Sctt, Adam: SPS; Morgan, Marta: SPS; Sech, Kevin: SP; Conn, John: SPS Sbjct: 000/11 1 ae wate ig 000179 2011-02-28Scott, Adam: SPS Fro Selch, Kevin: SPS Sent: Thursday, January 27, 2011 14:23 To: Scott, Adam: SPS; Miller, Pamela: SPS Subject: Re: MINO Meeting Debrief - Usage Based Billing Great, DMO will be expecting briefing material by Tues/Wed next week, Thanks, Kevin From: Scott, Adam: SPS To: Selch, Kevin: SPS; Miller, Pamela: SPS Sent: Thu Jan 27 14:01:19 2011 ‘Subject: RE: MINO Meeting Debrief - Usage Based Billing Yes - we can be ready, Selch, Kevin: SPS Sent: Thursday, January 27, 2011 1:58 PM To: Miller, Pamela: SPS Ce: Scott, Adam: SPS ‘Subject: Fw: MINO Meeting Debrief - Usage Based Billing Please see below and confirm, Thanks, Kevin From: Brown, Diana: IC-DM-IC-SM To: Selch, Kevin: SPS Ce: Waring, Jeff: IC-MIN (NCR-RCN) Sent: Thu Jan 27 13:31:01 2011 Subject: FW: MINO Meeting Debrief - Usage Based Billing Kevin - pls confirm we can be ready to brief on UBB on the 7th. Thanks, D From: Halucha, Pau: ICOMICSM ‘Sent: Thursday, January 27, 2011 12:25 PM To: Waring, Jeff: IC-MIN (NCR-RCN); Brown, Diana: IC-OM-IC-SM Ce: D’Angel, Diana: SADMO-BSMDP Subject: RE: MINO Meeting Debrief - Usage Based Billng Check with sector if this is possible by that date. Paul 486 000180s.21(1)(a) .21(1)(b) From: Waring, Jeff: ICMIN (NOR-RCN) ‘Sent: Thursday, January 27, 2011 12:20 PM To: Halucha, Paul: IC-DM-IC-SM; Brown, Diana: IC-DM-IC-SH Ce: D’Angeo, Diana: SADMO-BSMDP Subject: FW: MINO Mecting Debri- Usage Based Billng From: Miler, Pamela: SPS Sent: Thursday, January 27, 2011 11:56 AM ‘To: Halucha, Pau: I-DM-IC-SM; D'Angelo, Diana: SADMO-BSMDP; Brown, Diana: IC-DH-IC-SM; Waring, ef: ICMIN (NCR-RCN) (Cc: Scott, Adam: SPS; Morgan, Marta: SPS; Sech, Kevin: SPS; Connell, John: SPS Subject: MINO Meeting Debrief - Usage Based ailing 487 0001818.24(1)(a) 8.21(1)(b) Scott, Adam: SPS ‘Thursday, January 27, 2011 16:22 Miller, Pamela: SPS Cabinet Petition of a CRTC Usage Based Billing Decision Attachments: crte-2010-802-vaxination-petition-letter pdf; crte-2010-802-vaxination-petition paf ‘small business (Vaxination Informatique) has filed a petition to the Governor in Council asking that Telecom Decision CRTC 2010-802 on the implementation of wholesale usage based billing be rescinded. In Decision 2010-802 the CRTC approved a number of measures requested by Bell Canada with respect to the implementation of UBB on a wholesale basis. These include easing the requirement that Bell would have to convert all its grandfathered retail customers to UBB prior to implementing UBB on a wholesale basis and reversing the restriction that would have prevented Bell from waiving UBB, on a promotional basis, for its deregulated retail Internet customers. The Telecommunications Act requires that notice of the petition be published in the Canada Gazette establishing the process for public comments. Departmental officials will commence drafting the consultation documents. The government has one year from the date of the CRTC decision to act - in this case October 28, 2011 a 2 ‘rte-2010-802-van erte-2010-802-vaxt nation-petit..nation-pei. 475 001828.21(1)(a) 8.21(1)(b) Williamson, Steve: SPS From: Miller, Pamela: SPS Sent: Friday, January 28, 2011 11:01 To: Morgan, Marta: SPS; Seich, Kevin: SPS; Connell, John: SPS; Levesque, Joanne: SPS; Poirier, Anne: SPS; McDonald, Helen: SITT-STIT; Bincoletto, Susan: SITT-STIT; Gilfillan, Fiona: DGSO-DGOGS; DiFrancesco, Janet: SITT-STIT; Padtield, Christopher: SITT-STIT. ce: Scott, Adam: SPS; MacGilivray, Allan: SPS; Todoran, Andreea: SPS; Williamson, Steve: SPS. Subject: Cabinet Petition of a CRTC Usage Based Billing Decision Attachments: certe-2010-802-vaxination-petition-letter pdf, crtc-2010-802-vaxination-petition pdf ‘Assmall business (Vaxination Informatique) has filed a petition to the Governor in Council asking that Telecom Decision CRTC 2010-802 on the implementation of wholesale usage based billing be rescinded. In Decision 2010-802 the CRTC. approved a number of measures requested by Bell Canada with respect to the implementation of UBB on a wholesale basis. These include easing the requirement that Bell would have to convert all its grandfathered retail customers to UBB prior to implementing UBB on a wholesale basis and reversing the restriction that would have prevented Bell from waiving UBB, on a promotional basis, for its deregulated retail Intemet customers. ‘The Telecommunications Act requires that notice of the petition be published in the Canada Gazette establishing the process for public comments, Departmental officials will commence drafting the consultation documents. The government has ‘one year trom the date of the CRTC decision to act - in this case October 28, 2011 Info for SITT colleagues: a ea ‘cte-2010-802-vax! crte-2010-802-vaxi nation-peit...natlon-petit 001848.21(1)(a) Scott, Adam: SPS 24(1)(b) Miller, Pamela: SPS Saturday, January 29, 2011 15:26 Scott, Adam: SPS; Williamson, Steve: SPS; Todoran, Andreea: SPS UBB. I think you are already doing this- to note that Pam 463 001858.21(1)(a) 8.21(1)(b) Scott, Adam: SPS Monday, January 31, 2011 8:09 Williamson, Steve: SPS; Todoran, Andreea: SPS FW: UBB decision from last May --Original Message- rom: Halucha, Paul: IC-DM-IC-SM Sent: Monday, January 31, 2011 7:49 AM To: Morgan, Marta: SPS; Miller, Pamela: SPS; Scott, Adam: SPS Subject: UBB decision from last May 460 00186Page | of | 8.19(1) ‘Scott, Adam: SPS From Sent: Monday, January 31, 2011 10:42 To: Correspondence Minister/Correspondance Ministre: OCS ‘Subject: Usage Based Biling Mr. Clement My name is land I am writing to you as a concerned citizen, Recently, the CRTC has approved a highly controversial measure which allows Bell and others to charge customers per kilobyte downloaded. In clearer words, Bell can now sell $0.01 of bandwidth for $2.00, without any limitation ‘This is a clear abuse by Bell First, there is no need to impose @ cost per gigabyte downloaded. In fact, Canada is one of the few countries in the world who does this. Second, the cost is absolutely outrageous land since Bell controls the entire network, absolutely no competition is possible. This means canadians are in effect forced to pay these atrocious fees, without alternatives. Thirdly, this is a purely profit-driven initiative by Bell; Bell also offers television services which are now threatened by competition such as Netflix oF Google quickly. Bell offers television service through the same cables that also provide internet; however, Bell does not charge download fees for the television service. Therefore, a person would not incur any UBB fee by watching television using Bel’s service. That same person would incur fees for watching television through Netflix. It is my opinion that Bell began imposing Usage-Based Billing in response to the threat of Netix, Google TV and others, {UBB wil kill innovation in Canada. It wil kill online storage service it wil cloud computing and it will prevent canadians from enjoying the latest technology. Bell now imposes 25GB limits and a single movie can easily take 4GB, Also, a game can easily take 10 GB to download. Therefore, a typical canadian would be totally Unable to download a game without incurring catastrophic fees. For all the reasons mentionned aboved, we respectfully ask that you do everything in your power to protect an affordable and efficient Internet in Canada. We ask that you oppose Usage-Based Biling and act in a way to oppose it, immediately Sincerly yours, 000187 2011-02-16Scott, Adam: SPS Monday, January 31, 2011 12:02 Halucha, Paul: IC-DM-IC-SM FW: Statement from the Honourable Tony Clement - UBB - January 31 2011-Min.doc Importance: High Attachments: Statement from the Honourable Tony Clement - UBB - January 31 2011-Min.doc 2) Honourable his is what | got from comms. Will be sending comments shortly, ‘Adam Scott Director | Directeur Business and Regulatory Analysis | Analyses industrielle et réglementaire ‘Telecommunications Policy Branch | Politique des télécommunications Industry Canada | Industrie Canada 300 Slater Street, Ottawa ON K1A 0C8 | 300, rue Slater, Ottawa ON K1A 0C8, ‘Adam Scott@ic.g¢.ca Telephone | Téléphone 613-990-4224 Facsimile | Télécopieur 613-941-1399 Teletypewriter | Téléimprimeur 1-866-694-8389 Government of Canada | Gouvernement du Canada From: Mayer, Richard: CMB-DGCM Sent: Monday, January 31, 2011 11:35 AM To: Scott, Adam: SPS Cc: McGrath, Maureen: CMB-DGCM ‘Subject: FW: Statement from the Honourable Tony Clement - UBB - January 31 2011-Min.doc Importance: High ‘Adam — just got this and they want to start sharninng by 1PM ~ please review and commentiapprove. ‘Thanks... Richard From: Freamo, Janice: CMB-OGCM Sent: January 31, 2011 11:32 AM To: CMB-ASG-Strategic Policy (M. McGrath); CMB-Editorial: 00188Ce: CMB-Ministerial Services Subject: Statement from the Honourable Tony Clement - UBB - January 31 2011-Min.doc Importance: High Please see below a request for a statement on UBB from MINO. Can we format as a statement and ensure that sector vets the content? Editorial - Head's up, this one will likely travel quickly Can we fast-track this guy thru approval? We will begin to share with media at 1 pm. 438 001898.21(1)(a) 8.21(1)(b) Statement from the Honourable Tony Clement, Minister of Industry Ottawa, Ontario, January 31, 2011 — Today, the Honourable Tony Clement, Minister of Industry, issued the following statement regarding usage-based billing: “On Tuesday, January 25, 2011, the CRTC announced its decision to allow nternet service providers to charge for exceeding the monthly usage of data transfer permitted with their broadband Internet package. This will mean, for the first time, that many smaller and regional internet service providers will be required to move to a system of usage-based billing for their customers. ‘As Canada’s Industry Minister, it is my job to help encourage an innovative and competitive marketplace, and to ensure Canadian consumers have real choices in the services they purchase. The Harper Government is committed to encouraging choice and competition in wireless and internet markets. Increased competition, which means lower prices and better quality services for Canadians. We have always been clear on our policies in this regard and will continue on this path. Canadians can count on us to do what is in the best interest of consumers.” 00190s.21(1)(a) Scott, Adam: SPS 8.24(1)(b) Williamson, Steve: SPS ‘Monday, January 31, 2011 12:15 Miller, Pamela: SPS; Scott, Adam: SPS; Todoran, Andreea: SPS. FW: Statement from the Honourable Tony Clement - UBB - January 31 204 1-Min.doc. Importance: High Attachments: Statement from the Honourable Tony Clement - UBB - January 31 2011-Min.doc ie anenen fen ve Honourable y suggestions in track changes. ott, Adam: SPS Sent: Monday, January 31, 2011 11:50 AM To: Miller, Pamela: SPS; Williamson, Steve: SPS; Todoran, Andreea: SPS ‘Subject: FW: Statement from the Honourable Tony Clement - UBB - January 31 2011-Min.doc Importance: High FYI- Ii get back to Richard. Any other comments? From: Mayer, Richard: CMB-DGCM Sent: Monday, January 31, 2011 11:35 AM To: Scott, Adam: SPS Ce: McGrath, Maureen: CMB-DGCM ‘Subject: FW: Statement from the Honourable Tony Clement - UBB - January 31 2011-Min.doc Importance: High ‘Adam — just got this and they want to start sharninng by 1PM ~ please review and commentapprove. Thanks... Richard 433 00191From: Freamo, Janice: CMB-DGCM Sent: January 31, 2011 11:32 AM ‘To: CMB-ASG-Strategic Policy (M. McGrath); CMB-Editorial: CMB-DGCM Cc: CMB-Ministerial Services ‘Subject: Statement from the Honourable Tony Clement - UBB - January 31 2011-Min.doc Importance: High Please see below a request for a statement on UBB from MINO. Can we format as a statement and ensure that sector vets the content? Editorial - Head's up, this one will likely travel quickly Can we fast-track this guy thru approval? We will begin to share with media at 1 pm, 434 00192s.21(1)(a) 8.21(1)(b) Statement from the Honourable Tony Clement, Minister of Industry ‘Ottawa, Ontario, January 31, 2011 — Today, the Honourable Tony Clement, Minister of Industry, issued the following statement regarding usage-based billing: (Betta amooncea Deleted: on Tuesday, January 25, 2011, the CRTC its decision to allow internet service : providers to charge their wholesale customers for exceeding the monthly usage of data transfer permitted with thelr broadband Internet service. This will mean, forthe ist (Deletes: pactane time, that many smaller and regional Internet service providers wil be required to move toa system of usage-based bling for their customers. [As Canada’s Industry Minister, itis my job to help encourage an innovative and competitive marketplace, and to ensure Canadian consumers have real choices in the services they purchase (Dette (Deletes: ‘The Harper Government is committed to encouraging choice and competition In wireless and internet markets. Increased competition, which means lower prices and better quality services for Canadians. We have always been clear on our policies in this regard and will continue on this path. Canadians can count on us to do What is in the best interest of consumers.” 00193Page | of 2 s.21(1)(a) 8.21(1)(b) Morgan, Marta: SPS Monday, January 31, 2011 14:12 ‘Scott, Adam: SPS; Connell, John: SPS Miller, Pamela: SPS; Williamson, Steve: SPS; Levesque, Joanne: SPS; Todoran, Andreea: SPS Subject: Re: UBB process issues Marta Morgan Assistant Deputy Minister | Sous-ministre adjointe Strategic Policy Sector | Secteur de la politique strategique Industry Canada | Industrie Canada Telephone | Telephone 613-943-7049 Government of Canada | Gouvernement du Canada jorgan, Marta: SPS; Connell, John: SPS Cc: Miller, Pamela: SPS; Williamson, Steve: SPS; Levesque, Joanne: SPS; Todoran, Andreea: SPS Sent: Mon Jan 31 13:53:15 2011 Subject: UBB process issues AAs requested, some facts and considerations on process issues CRTC Decisions 3 decisions have been issued May 2010 - framework decision establishing right for incumbent telcos to charge UBB on wholesale service with some conditions (e.g. must apply UBB to all your own customers too) + Oct 2010 - adjustments to the conditions for imposing wholesale UBB «Jan 2011 - setting the wholesale rates at 15% discount from retail Appeals ‘«_ A small ISP from Montreal (Vaxination) appealed the Oct 2010 decision to the GiC; Government has until Oct 2011 to respond «Deadline now passed for appealing May or October decisions ‘© January decision may stil be appealed (until April 25), but that decision focussed narrowly on the size of the discount 00194 2011-02-28UBB process issues 8.24(1)(a) Page 2 of 2 8.24(1)(b) ‘Adam Scott Director | Directeur Business and Regulatory Analysis | Analyses industrielle et réglementaire TTelecommunications Policy Branch | Politique des telécommunications Industry Canada | Industrie Canada 300 Slater Street, Ottawa ON K1A 0C8 | 300, rue Siater, Ottawa ON K1A 0C8 ‘Adam Scott@ic.ac.ca Telephone | Telephone 613-990-4224 Facsimile | Telecopieur 613-041-1399 Teletypewrter | Teleimprimeur 1-866-604-8389 Government of Canada | Gouvernement du Canada 2011-02-28 ooores8.24(1)(a) 8.24(1)(b) Scott, Adam: SPS ‘Scott, Adam: SPS Monday, January 31, 2011 14:33 To: Miller, Pamela: SPS Subject: RE: Revised statement - for your urgent review please From Willer, Pamela SPS Sen Monday, January 31, 2011 2:23 PM 1 Scott, Adam: SPS Subject: FW: Revised statement -for your urgent review please Importance: High Bard, Louse: CMB-DGCM Monday, January 31, 2011 2:18 PM Mlle, Pamela: SPS; Scot, Adam: SPS; McGrath, Maureen: CME-DGCM; Mayer, Richard: CMB-OGCM; Gullault, Natacha: LEG rorr Revised statement - for your urgent review please High Thanks, Louise << File: Statement from the Honourable Tony Clement - UBB - January 31 2011-MO FINAL doc >> 406 00196Digital Economy Strategy Page 1 of 2 igital Economy ey ean age 1 o! 8.21(1)(a) Miller, Pamela: SPS 8.21(1)(b) From: Miller, Pamela: SPS Sent: Monday, January 31, 2011 18:59 To: Kinsey, Doug: RO-OR (PAC) Ce: Beaudoin, Alain: SITT-STIT Subject: Re: Net Neutrality Interesting, similar story in the Globe over the weekend. ‘As background, telcos and cablecos have applied usage based billing to their own customers, which account for 94% of Canadian Intemet subscribers, for quite some time, What is new is the application to wholesale providers, the small ISPs. They are now subject to the same provisions as the telcos’ retail customers. Pam From: Kinsey, Doug: RO-OR (PAC) To: Miller, Pamela: SPS Ce: Beaudoin, Alain: SITT-STIT Sent: Mon Jan 31 18:50:08 2011 ‘Subject: Net Neutrality Hello Pam, | understand from Alain that you have been working on the net neutrality issue. Regards, Doug Kinsey Executive Director / Directeur exéeutit Pacific Region / Region du Pacifique Industry Canada Industrie Canada 100 - 300 West Georgia St. Vancouver, B.C, VOB GE Telephone 604-666-100 ous, Kinsew@ie.0c.ca From: Sent: January 30, 2011 6:50 PM To: Kinsey, Doug: RO-OR (PAC); Bazo, Fabiola: RO-OR (PAC) ‘Subject: RE: Digital Economy Strategy Hi Doug , !hope you are well and happy new year 000197 2011-02-28$.20(1)(c) Page 2 of 2 http://thetyee.ca/Mediacheck/2011/01/26/internettosers/print.htm! From: Doug.Kinsey@ic.gc.ca [mailto:Doug.Kinsey@ic.gc.ca] Sent: Wednesday, July 07, 2010 10:51 AM To: Subject: Digital Economy Strategy Hello | just wanted to thank you personally for taking the time to meet with Susan, Alain, Fabi and myself on June 25th Regards, Doug Kinsey Executive Director (Pacific Region) Industry Canada 604-666-1400 doug kinsey@ic.a¢.ca gem wes Rose Canada 2011-02-28 oooresScott, Adam: SPS eee ———_— From: Scott, Adam: SPS Sent: Monday, January 31, 2011 16:31 To: Miller, Pamela: SPS Subject: UBB form letter campaign Attachments: FW: Non au compteur!; Usage Based Billing 94,000 must be a new record Parisien, Evelyne: CPO-BSGP Monday, January 31, 2011 3:22 PM Johnston, Susan: SPS RE: UBB master docket ‘Yes we have received over 94,000 emails on UBB and most of them are form letters which I have attached. R FW: Non au Usage Based Bing compteur! From: Johnston, Susan: SPS Monday, January 31, 2081 3:10 PM Parisien, Evelyne: CBO-BSGP ‘Telecom Policy; Todoran, Andreea: SPS Subject: UBB master docket Hi, Evelyne, Lise mentioned that you had received a high level of correspondence on this topic in recent days, If you have numbers (ie., of letters or otherwise), we would find it helpful Many thanks, Susan ‘Susan Johnston (Ms.) Telecommunications Policy Branch | Direction générale de la politique des télécommunications Strategic Policy Sector | Secteur de la politique stratégique Industry Canada | Industrie Canada 300 Slater Street, Ottawa ON K1A 0C8 | 300, rue Siater, Ottawa ON K1A 0CB CANADA ‘Susan_Johnston@ic.ac.ca Telephone | Téléphone +1-613-998-9053, Facsimile | Télécopieur +1-613-998-4350 Teletypewniter | Teleimprimeur 1-866-694-8389 Government of Canada | Gouvernement du Canada 390 ‘000200Miller, Pamela: SPS Monday, January 31, 2011 16:33 2 Scott, Adam: SPS Subject: RE: UBB form letter campaign That is incredible. Scott, Adam: $5 Monday, January 31, 2011 4:31 PM Miler, Pamela: SPS Subject: UB for ferter campaign {94,000 must be a new record Parisien, Evelyne: CPO-BSGP Monday, January 31, 2011 3:22 PM Johnston, Susan: $°5 RE: UBB master docket Yes we have received over 94,000 emails on UBB and most of them are form letters which | have attached ‘<« Message: FW: Non au compteur! >> << Message: Usage Based Billing >> ston, Susan: SPS Monday, January 31, 2011 3:10 PM Parisien, Evelyne: CPO-BSGP “Telecom Policy; Todoran, Andreea: SPS Subject: UBB master docket Hi, Evelyne, Lise mentioned that you had received a high level of correspondence on this topic in recent days. If you have numbers (ie, of letters or otherwise), we would find it helpful Many thanks, Susan ‘Susan Johnston (Ms.) Telecommunications Policy Branch | Direction générale de la politique des telécommunications Strategic Policy Sector | Secteur de la politique stratégique Industry Canada | Industrie Canada 300 Slater Street, Ottawa ON K1A 0C8 | 300, rue Slater, Ottawa ON K1A 0C8 CANADA Susan Johnston@ic.gc.ca Telephone | Telephone +1-613-998.9053 Facsimile | Télécopieur +1-613-998.4350 Teletypewriter | Teleimprimeur 1-866-694-8389 Government of Canada | Gouvernement du Canada 0002018.21(1)(a) 8.21(1)(b) Scott, Adam: SPS CO — From: Scott, Adam: SPS. Sent: Tuesday, February 1, 2011 8:40 Miller, Pamela: SPS ‘Williamson, Steve: SPS; Todoran, Andreea: SPS. RE: Can you look at tomorrow | can review it. Also, Halucha just called me and said he wants us to include a critical path with the note Well have to whip this up quickly, From Miler, Pamela: SPS Sent: Monday, January 31, 2014 5:51 PM To: Scott, Adam: SPS Subject: an you look at tomorrow | would like you to read the considerations section before sending. This is dificult to do in advance of the deck << File: 223004-BN_SPS_DM_Usage_based_billing_(UBB)-R-SITT-STIT.DOC.DRF >> 387 00211SPM Items Request - Sept 24 Page | of 3 Miller, Pamela: SPS From: Miller, Pamela: SPS Sent: Tuesday, February 1, 2011 9:46 To: Scott, Adam: SPS; Mayer, Richard: CMB-DGCM Ce: Proulx, Julie: SPS; Dyal, Sabrina: IC; Todoran, Andreea: SPS ‘Subject: Re: QP Card February 1, 2011 Looks fine 8.21(1)(a) 8.24(1)(b) From: Scott, Adam: SPS To: Miller, Pamela: SPS; Mayer, Richard: CMB-DGCM Ce: Proulx, Julie: SPS; Dyal, Sabrina: IC; Todoran, Andreea: SPS Sent: Tue Feb 01 09:23:24 2011 Subject: QP Card February 1, 2011 Proposed revised OP text Richard, do you have the statement in French? From: Sharpe, Lucie: SPS Sent: Tuesday, February 1, 2011 8:43 AM To: Miller, Pamela: SPS; MacGillivray, Allan: SPS; Scott, Adam: Cc: Proulx, Julie: SPS; Freeborn, Sara: SPS Subject: FW: SPM Items Request ~- February 1, 2011 Importance: High due at 9.30 today Lucie Sharpe Administrative Coordinator Policy Secretariat, Industry Canada 235 Queen Street, room 1030D Ottawa, Ontario, KIA OHS fax: 613-952-8761, tel: 613-954-3565 00212 2011-02-28SPM Items Request - Page 2 of 3 Bonjour! 2011-02-04 Question Period / Période des questions QP _/ Fiche parlenentaire 1 QP Update Usage-based billing (SPS) htto:/nww infomedia gc caficlarticles/unrestricted/2011/02/ic20112329180766_68 htm hitp:Mnww infomedia ac caficfarlicles/unrestricted/201/02/ic201 12256790152 9 htm http /ww Infomedia ac.caficlarticles/unrestricted/2011/02/ie701 1223532103 1 htm ito www infomedia gc caficlarticles/unrestricted/2011/02/1c2011219539766.3.him 2- QP Update: Credit Cards (CB) hitp www infomedia ac caliclarticles/unrestricted/2011/02/ic201123211988736_68.him House Business / Travaux de la Chanbre Nil report/ Rien a signaler Media Lines / Tafocapsules Nil report/ Rien a signaler other / autre Nil report/ Rien a signaler Media Monitoring / Suivi des médias OTTAWA, O.N. The Commons Legislative Committee on Bill C-32 will meet to discuss Bill C-32, An Act to ‘amend the Copyright Act. Witnesses. Alain Pineau, National Director, Canadian Conference of the Arts, Bill Freeman, Chair, Creators Copyright Coalition; Marvin Dolgay, Vice-Chair, President of Screen Composers Guild of Canada: John Barrack, Chief Operating Officer and Chief Legal Officer, Canadian Media Production ‘Association: Reynolds Mastin, Counsel, Canadian Media Production Association. Location & Time: Room 253-D, Centre Block @ 11:00 a.m ***please be reminded that deadlines are 10:00 a.m. in English and 10:30 a.m. in French Monday 10 Thursday for all QRT requests: 9:30 a.m. in English and 10:00 «a.m. in French on Fridays. It is very important to advise me as soon as a card is completed. ***Rappel - Les délais applicables @ toutes les demandes de préparation de la période des questions sont les suivants : 10 h du matin pour l'anglais et 10 h 30 pour le francais, du lundi au jeu matin pour ‘anglais et 10h pour le francais, fe vendredi. lest trés important de m'avertir des qu'une fiche est terminée, 00213 2011-02-28SPM Items Request - Sept 24 Page 3 of 3 2011-02-28 00214Scott, Adam: SPS 8.21(1)(b) ——— From: Scott, Adam: SPS Sent: Tuesday, February 1, 2011 10:13 To: Miller, Pamela: SPS 7 Re: Urgent request I spoke to Diana D Ended up sending her the email on process that I sent Marta yesterday, with that. original Message - From: Miller, Pamela: SPS To: Scott, Adam: sPs Sent: Tue Feb 01 10:08:06 2012 Subject: FW: Urgent request. Pamela Miller Director General | Directeur générale Strategic Policy Sector | Secteur de la politique etratégique Industry Canada | Industrie Canada They're happy 300 Slater Street, Ottawa ON KIA 0C8 | 300, rue Slater, Ottawa ON KIA 0c8 Panela.Milleric.gc.ca Lephone | Téléphone 613-998-4242 Facsimile | Télécopieur 613-998-1256 Teletypewriter | Téléimprimeur 1-866-694-8369 Government of Canada | Gouvernement du Canada original Message----- From: Morgan, Marta: SPS Sent: Tuesday, February 1, 2011 10:04 AM To: Miller, Pamela: SPS Subject: Urgent request -++---Original Message--- From: Diana D'angelo To: Marta Morgan Subject: UBB/net neutrality Sent: Feb 1, 2011 9:38 AM Morning Marta: D Marta Morgan Assistant Deputy Minister | Sous-ministre adjointe Strategic Policy Sector | Secteur de la politique strategique Industry Canada | Industrie Canada Telephone | Téléphone 613-943-7049 Government of Canada | Gouvernement du Canada 374 002158.24(1){a) 8.24(1)(b) Scott, Adam: SPS Scott, Adam: SPS Tuesday, February 1, 2014 10:18 Miller, Pamela: SPS; Morgan, Marta: SPS FW: UBB process issues This is what I sent to Simon's office, From: Diangelo, Diana: SADMO-BSNOP Sent: Tuesday, February 1, 2011 10:01 AM To: Scott, Adam: SPS Subject: RE: UBB process issues This is very helpful. Thanks Adam. d Scott, Adam: SPS “Tuesday, February 1, 2011 9:55 AM Diangelo, Diana: SADMO-BSMOP FW: UBB process issues As discussed ‘Adam. Scott, Adam: SPS Monday, January 31, 2011 1:53 PM Morgan, Marta: SPS; Connel, John: SPS Miler, Pamela: SPS; Wiliamson, Steve: SPS; Levesque, Joanne: SPS; Todoran, Andreea: SPS UBB process issues As requested, some facts and considerations on process issues CRTC Decisions 3 decisions have been issued ‘+ May 2010 - framework decision establishing right for incumbent telcos to charge UBB on wholesale service with some conditions (e.g. must apply UBB to all your own customers too) ‘+ Oct 2010 - adjustments to the conditions for imposing wholesale UBB + Jan 2011 - setting the wholesale rates at 15% discount from retail Appeals, ‘+ Assmall ISP from Montreal (Vaxination) appealed the Oct 2010 decision to the GiC; Government has until Oct 2011 to respond = Deadline now passed for appealing May or October decisions ‘+ _ January decision may stil be appealed (until April 25), but that decision focussed narrowly on the size of the discount an 00216‘Adam Scott Director | Directeur 8.24(1)(a) Business and Regulatory Analysis | Analyses industrielle et féglementaire 8.24(1)(b) Telecommunications Policy Branch | Poltque des télecommunications Industry Canada | Industrie Canada 300 Siater Street, Ottawa ON K1A 0C8 | 300, rue Slater, Ottawa ON K1A OCB Adam Scott@ic.gc.ca Telephone | Téléphone 613-990-4224 Facsimile | Télécopieur 613-941-1399 Teletypewriter | Teleimprimeur 1-866-694-8389 Government of Canada | Gouvernement du Canada a3 000217SPM Items Request - s.21(1)(a) 8.21(1)(b) Miller, Pamela: SPS From: Miller, Pamela: SPS Sent: Tuesday, February 1, 2011 12:14 To: Scott, Adam: SPS; Mayer, Richard: CMB-OGCM Cc: McGrath, Maureen: CMB-DGCM Subject: RE: QP Card February 1, 2011 ‘Adam's statement works well From: Scott, Adam: SPS Sent: Tuesday, February 1, 2011 12:12 PM To: Mayer, Richard: CMB-DGCM Cc: McGrath, Maureen: CMB-DGCM; Miller, Pamela: SPS Subject: RE: QP Card February 1, 2011 Richard From: Mayer, Richard: CMB-DGCM Sent: Tuesday, February 1, 2011 12:01 PM To: Scott, Adam: SPS Cc: McGrath, Maureen: CMB-DGCM Subject: RE: QP Card February 1, 2011 ‘Adam ~ as discussed, this is what we would prefer for the QP card and media lines: 00218 2011-02-28 Page | of 3SPM Items Request Sept 24 s.24(1){a) 8.21(1)(b) ‘Thanks....Richard From: Scott, Adam: SPS Sent: February 1, 2011 9:23 AM To: Miller, Pamela: SPS; Mayer, Richard: CMB-DGCM Ce: Proulx, Julie: SPS; Dyal, Sabrina: IC; Todoran, Andreea: SPS Subject: QP Card February 1, 2011 From: Sharpe, Lucie: SPS Sent: Tuesday, February 1, 2011 8:43 AM To: Miller, Pamela: SPS; MacGillivray, Allan: SPS; Scott, Adam: SPS Ce: Proulx, Julie: SPS; Freeborn, Sara: SPS Subject: FW: SPM Items Request -- February 1, 2011 Importance: High due at 9:30 today, Lucie Sharpe Administrative Coordinator Policy Secretariat, Industry Canada 235 Queen Street, room 1030D Ottawa, Ontario, KIA OHS fax: 613-952-8761, tel: 613-954-3565 Bonjour! 2011-02-01 Question Period / Péricde des questions 1- QP Update Usage-based billing (SPS) 2011-02-28 00219 Page 2 of 3SPM Items Request - Sept 24 Page 3 of 3 htto./hwww.infomedia.ac.ca/ic/articles/unrestricted/201 1/02/ic20112329180766_68,ntm http Jiwww.infomedia.qo.ca/iclarticles/unrestricted/201 1/02/ic201 12256790152 _9.htm http Jhwww.infomedia go.calic/articles/unrestricted/201 1/02/ic201 1223532103 1 htm nittp.shwww.infomedia ac.cafic/articles/unrestricted/2011/02/ic2011219539766_3.htm 2- QP Update: Credit Cards (CB) http siwww infomedia ac. calic/articles/unrestricted/2011/02/ie201 123211988736 _68 htm House Business / Travaux de la Chanbre Nl report/ Rien a signaler Media Lines / Infocapaules Nil report/ Rien a signaler Other / Autre Nil report/ Rien a signaler Media Monitoring / Suivi des médias OTTAWA, O.N. - The Commons Legislative Committee on Bill C-22 will meet to discuss Bil C-32, An Act to amend the Copyright Act. Witnesses: Alain Pineau, National Director, Canadian Conference of the Arts, Bill Freeman, Chair, Creators Copyright Coalition, Marvin Dolgay, Vice-Chair, President of Screen Composers Guild of Canada, John Barrack, Chief Operating Officer and Chief Legal Officer, Canadian Media Production Association, Reynolds Mastin, Counsel, Canadian Media Production Association. Location & Time: Room 253-D, Gentre Block @ 11:00 am ***Please be reminded that deadlines are 10:00 a.m. in English and 10:30 a.m. in French Monday t0 Thursday for all QRT requests; 9.30 a.m. in English and 10:00 a.m. in French an Fridays. It is very important to advise me as soon as a card is completed. ***Rappel - Les délais applicobles & toutes les demandes de préparation de la période des questions sont les suivants : 10 h du matin pour anglais et 10h 30 pour le francais, du lundi au jeudi; 9h 30 du matin pour Vangiais et 10 h pour le francais, le vendredi. lest tres important de m’avertir dés qu'une fiche est terminée, 000220 2011-02-288.24(1)(a) Scott, Adam: SPS s.24(1(b) Scott, Adam: SPS Tuesday, February 1,2011 16:28 Miler, Pamela: SPS ce: TTodoran, Andreea: SPS; Williamson, Steve: SPS Subject: Call rom UBB pettioner ‘Adam Scott Director | Directeur Business and Regulatory Analysis | Analyses industrielle et réglementaire Telecommunications Policy Branch | Politique des télcommunications Industry Canada | Industrie Canada 300 Slater Street, Ottawa ON K1A 0C8 | 300, rue Slater, Ottawa ON K1A 0C8 ‘Adam Scott@ic.ac.ca Telephone | Téléphone 613-990-4224 Facsimile | Télécopieur 613-941-1399 Teletypewrter | Téléimprimeur 1-866-694-8389 Government of Canada | Gouvernement du Canada 000221Scott, Adam: SPS S211) 5. 24(4)(0) Miller, Pamela: SPS Tuesday, February 1, 2011 17:39 Scott, Adam: SPS ce: Williamson, Steve: SPS; Todoran, Andreea: SPS. Subject: Re: UBB MIN briefing ram From: Scott, Adam: SPS Te: Morgan, Marta: SPS; SPS ADMO; Miller, Pamela: SPS Cc: Williamson, Steve: SPS; Todoran, Andreea: SPS Sent: Tue Feb 01 16:53:38 2011 ‘Subject: UBB MIN briefing Marta, attached are some key points for your discussion with the Minister tonight. -<<224368-UBB MIN Briefing Points-1-SITT-STIT.DOG>> ‘Adam Scott Director | Directeur Business and Regulatory Analysis | Analyses industrielle et réglementaire Telecommunications Policy Branch | Politique des télecommunications Industry Canada | Industrie Canada 300 Siater Street, Ottawa ON K1A 0C8 | 300, rue Slater, Ottawa ON K1A 0C8 ‘Adam Scott@ic.gc.ca Telephone | Téléphone 613-990-4224 Facsimile | Télécopieur 613-941-1309 Teletypewriter | Téléimprimeur 1-886-694-8389 Government of Canada | Gouvernement du Canada 33 000222s.21(1)(a) Scott, Adam: SPS 8.24(1\(b) Miller, Pamela: SPS ‘Tuesday, February 1, 2011 18:23, Scott, Adam: SPS Re: UBB Points for Marta tonight From: Scott, Adam: SPS To: Miller, Pamela: SPS Sent: Tue Feb 01 18:13:05 2011 ‘Subject: Re: UBB Points for Marta tonight From: Miller, Pamela: SPS To: Scott, Adam: SPS Sent: Tue Feb 01 17:59:51 2011 Subject: Re: UBB Points for Marta tonight Sorry didn't get back to you, in a DES meeting with DM which turned out to be more about spectrum From: Scott, Adam: SPS To: Miller, Pamela: SPS; Williamson, Steve: SPS; Todoran, Andreea: SPS Sent: Tue Feb 01 16:14:48 2011 ‘Subject: UBB Points for Marta tonight My thoughts on key points for Marta as per her request. Views? Additions? ‘We will also send her the updated timeline slide if time permits. 0002238.21(1)(a) s.24(1)(b) Scott, Adam: SPS Scott, Adam: SPS. Tuesday, February 1, 2011 20:07 Baird, Louise: CM8-DGCM; Miller, Pamela: SPS; Mayer, Richard: CMB-DGCM McGrath, Maureen: CMB-DGCM; Guenette, Corinne: CMB-DGCM Subject: Re: Media call - UBB s-+-+ Original Message : From: Baird, Louise: CMB-DGCM To: Miller, Pamela: SPS; Scott, Adam: SPS; Mayer, Richard: CMB-DGCM Ce: McGrath, Maureen: CMB-DGCM; Guenette, Corinne: CB-DGCM Sent: Tue Feb 01 19:54:48 2011 Subject: Media call - UBB Hello, ‘Thanks very much, Louise 323 0002258.21(1)(a) Scott, Adam: SPS 8.21(1)(b) Connell, John: SPS, Tuesday, February 1, 2011 20:67 Scott, Adam: SPS Subject: Re: UBB MIN briefing Thanks, From: Scott, Adam: SPS To: Connell, John: SPS Sent: Tue Feb 01 17:07:57 2011 ‘Subject: FW: UBB MIN briefing Sorry, in my rush | forgot to oc you. Sent: Tuesday, February 1, 2011 4:54 PM To: Morgan, Marta: SPS; SPS ADMO; Miler, Pamela: SPS Ce: _Willamson, Steve: SPS; Todoran, Andreea: SPS Subject: UBB MIN briefing Marta, attached are some key points for your discussion with the Minister tonight. <<224368-UBB MIN Briefing Points-1-SITT-STIT.DOG>> ‘Adam Scott Director | Directeur Business and Regulatory Analysis | Analyses industrielle et réglementaire Telecommunications Policy Branch | Politique des télécommunications Industry Canada | Industrie Canada 300 Slater Street, Ottawa ON K1A 0C8 | 300, rue Slater, Ottawa ON K1A0C8 Adam Scott@ic.ac.ca Telephone | Telephone 613-990-4224 Facsimile | Télecopieur 613-941-1399 Teletypewriter | Téléimprimeur 1-866-694-8389 Government of Canada | Gouvernement du Canada 35 0002268.21(1)(a) 8.24(1)(b) Miller, Pamela: SPS Wednesday, February 2, 2011 9:08 Morgan, Marta: SPS Fw: Michael Geist's Blog - (TC) The Government's Review of Usage Based Billing original Message - From: Downie, Colette: SPS to: Miller, Pamela: SPS Sent: Wed Feb 02 09:01:43 2012 Subject: FW: Michael Geist's Blog - (TC) The Government's Review of Usage Based Billing Original Message----- From: CMB Media Monitoring / Surveillance médiatique DGCH Sent: Wed 2/2/2011 6:20 AM Subject: Michael Geist's Blog - (TC) The Government's Review of Usage Based Billing Michael Geist's Blog chttp: //fusion. google .com/add? sourcesatgssfeedurl=http://feeds. feedburner .com/MichaelGeistsBlog> ‘The Government's Review of Usage Based Billing: what Should Come Next Angus Calls for Hearings on CRTC Broadcasting False News Change Canadian Federation of Students Releases C-32 Position Paper Independent ISPs Speak out on UBB ‘The Government's Review of Usage Based Billing: what Should Come Next cheep: //feedproxy .google. con/~r/MichaelGeistsBlog/-3/NqV¥70qDbNC/? utm_source=feedburnersutm_medium=email> Posted: 01 Feb 2011 09:31 PM PST yesterday wae a remarkable day for those following the usage based billing and bandwidth cap issue. In the span of 24 hours, an unlikely political consensus emerged that left little doubt that - at a minimum - the CRTC's USB decision will be reconsidered. Prime Miniter Harper expressed his concern with the decision, Industry Minister Tony Clement hinted cattp: //uww. thestar.com/business/article/931775--ottawa-to- review-gouging-internet-charges> at overturning the decision, and both the Liberals chttp: //www. liberal .ca/newsroom/news-release/1iberals-oppose-crtc-decision-usagebased- billing/> and NDP chctp: //www.ndp-ca/press/angus-to-conservatives-no-half-measures-on- internet-caps> expressed strong support for overturning the decision. Groups like the Canadian Network Operators Consortium , which represent dozens of independent ISPs, wrote to Clement to call for cabinet to teconsider all the CRTC's UBB decisions and even the Canadian Federation of Independent Businesses wrote to express its concern about the impact on Canadian small businesses. An Industry Committee hearing on UBB will apparently begin on Thursday. With Clement indicating that a decision will be forthcoming by March 1st, there is just one month for cabinet to address the issue. So what comes next? 000231As I argued in my lengthy post on UBB and bandwidth caps chttp: //www.michaelgeist .ca/content /view/5611/125/> yesterday, politicians and policy makers must recognize that this particular decision is only a small part of the broader concern over an uncompetitive broadband marketplace that has led to near-universal use of bandwidth caps. Overturning the CRTC decision is necessary, but by no means sufficient to address the current problems. Government action should be accompanied by a broader strategy to increase competition and to guard against abusive behaviour by the dominant IsPs. I identified many possibilities in yesterday's post ehttp: //www.michaelgeist .ca/content /view/5611/125/> on the specific CRTC UBB decisions, cabinet is faced with the option of asking the CRTC to reconsider the decisions or to overrule the Commission. while it will be tempting to punt the issue back to the CRTC for reconsideration or varying the decisions with its own regulatory solutions, it should take a clear stand by rescinding the Commission's various UBB decisions. Section 12 of the Telecommunications Act chttp://lawa. justice .ge.ca/eng/T-3.4/page-1.html#anchorbo-ga:1_I-gb:s_a> gives the government the power to rescind a Commission decision within a year of its release (there is no need for a specific petition to vary or rescind a decision): Within one year after a decision by the Commission, the Governor in Council may, on petition in writing presented to the Governor in Council within ninety days after the decision, or on the Governor in Council4?Ts own motion, by order, vary or rescind the decision or refer it back to the Commission for reconsideration of all or a portion of it Tt should exercise the power to rescind for the following reasons: 1. The CRTC has gone back and forth on the UBB issue with no clear idea of what it is trying to achieve. Sending the issue back for another decision merely repeats the cycle with little hope for meaningful change 2. The CRTC's attitude toward independent ISPs has been particularly troubling for those committed to fostering new competition. As Commissioner Tim Denton concluded chetp: //www.crte.ge.ca/eng/archive/2010/2010-632.htm> in his dissent in the speed matching case: What is deplorable, in my view, is the disinclination to consider that specialist outfits like omall ISPe should be allowed the opportunity for service innovation because the Commission: a) oubstitutes ite opinion for what certain players in the market might decide to do; ana b) declines to investigate the options for innovation in a serious and prolonged way. The result is that the possibility for service innovation was turned down, without sufficient consideration, in my estimation. The current ambivalence about the role and legitimacy of smaller carriers continues. They are allowed to exist but denied the means to innovate. In a business with as much uncertainty as this, turning down the possibility for technical and businese innovation seems a riskier move than letting it go ahead 3. _Rescinding the decision is consistent with the government's own policy direction to the CRTC in 2006, which recognized the need to consider independent ISPs within the context of mandated wholesale access. In particular, the Commission was directed as part of its review to take into account the principles of technological and competitive neutrality, the potential for incumbents to exercise market power in the wholesale and retail markets for the service in the absence of mandated access to wholesale services, and the impediments faced by new and existing carriers seeking to develop competing network facilities 4, Sending the decision back to the CRTC for reconsideration virtually guarantees months or years of additional costly hearings and litigation. This would effectively represent a win for Bell at the expense of the independent ISPs. Bell can clearly afford to spend millions on litigation and lobbying in an effort to wear down the independent 2 000232Isps. For smaller independent ISPs, the ongoing regulatory costs, which are ultimately borne by consumers, are enormous and result in a less competitive market I£ the government is serious about fostering a more competitive marketplace, ISPs and consumers need policy decisions that promote competition, not more hearings. Tt is entirely possible that Bell would reapply for wholesale UBS, but with the government having spoken, the issue would likely be viewed in a new light without the baggage of the poorly reasoned earlier UBB decisions. As I noted yesterday, there are alternatives to UBB euch as bulk wholesale service that would allow for independent ISPs to offer more choice than just passing along Bell's caps (it should be the companies that propose this, not the government in an order to vary the decision). Rescinding the CRTC's UBB decisions is the right thing to do and an important first step in addressing the competition concerns in the Canadian market. Angus Calls for Hearings on CRTC Broadcasting False News Change Posted: 01 Feb 2011 09:22 PM PST NDP MP Charlie Angus has put forward a motion at the Standing Conmittee on Canadian Heritage calling for hearings on the CRTC's proposed change chttp://www.michaelgeist .ca/content/view/5570/125/> to the broadcasting false news prohibition chttp://feeds. feedburner .com/~r/MichaelGeistsBlog/~4/B_B6SUBATEC? utm_source-feedburneréutm medium-email> canadian Federation of students Releases C-32 Position Paper chttp: //Eeedproxy .google. com/~r/MichaelGeistsBlog/-3/TEEAISWBFWY/? utm source-feedburneréutm_medium-email> Posted: 01 Feb 2011 09:20 PM PST qhe Canadian Federation of students has issued a comprehensive position paper on Bill C-32. It calls for the adoption of a flexible fair ealing provision and raises questions about the inclusion of the digital lock rules. At a minimum, it calle for a link between circumvention and an infringing purpose and a prohibition on using digital locks to hinder non-infringing uses chttp://feeds. feedburner .com/-r/MichaelGeistsBlog/~4/T8EAISWBFWY? utm_source-feedburnerautm medium-email> independent ISPs Speak out on UBB Posted: 01 Feb 2011 07:48 AM PST ‘The Canadian Network Operators Consortium, which represents dozens of independent ISPs, have written chttp://ww-michaelgeist .ca/component /option, com docman/task,doc_download/gid,40> to Industry Minister Tony Clement to ask the government to refer the CRTC's UBB decision back to the Commission for review. The letter chttp: //www.michaelgeist .ca/component /option, com_docman/task,doc_downlead/gid,40> notes: under section 12 of the Telecommunications Act, the Governor in Council can within one year of any CRTC decision on its own motion, by order, vary, rescind the decision or refer it back to the CRTC for reconsideration of all or a portion of it. For these reasons we are asking you to urge your fellow Cabinet members to ask the Governor in Council, of its own motion, to refer the UBB Decisions back to the CRTC for reconsideration in accordance with the pro-competitive principles described above. 000233,s.21(1)(a) 8.21(1)(b) Scott, Adam: SPS Morgan, Marta: SPS Wednesday, February 2, 2011 11:05 Miller, Pamela: SPS; Levesque, Joanne: SPS; Connell, John: SPS; Poirier, Anne: SPS ‘Scott, Adam: SPS Re: INDU - Fallout from Feb 1st In Camera Meeting [UPDATE] Marta Morgan Assistant Deputy Minister | Sous-ministre adjointe Strategic Policy Sector | Secteur de la politique strategique Industry Canada | Industrie Canada Telephone | Téléphone 613-943-7049 Government of Canada | Gouvernement du Canada From: Miller, Pamela: SPS To: Morgan, Marta: SPS; Levesque, Joanne: SPS; Connell, John: SPS; Poirier, Anne: SPS Ce: Scott, Adam: SPS Sent: Wed Feb 02 10:56:28 2011 Subject: FW: INDU - Fallout from Feb ist In Camera Meeting [UPDATE] See below - CRTC will appear first, IC would be 8th or 10th, Marta will you be appearing? From: Champagne, Gaetan: CPO-BSGP Sent: Wednesday, February 2, 2011 10:32 AM To: Miler, Pamela: SPS; Scot, Adam: SPS Ce: Ramsay, Shana: CPO-BSGP ‘Subject: RE: INDU - Fallout from Feb Ist In Camera Meeting [UPDATE] | just had a conversation with the Clerk of INDU and he indicated that for tomorrow's meeting, only the CRTC would attend, and if we (IC) were to be invited, it would be for one of the other two scheduled days of committee study on this subject. (the 8th or the 10th) Would still be important to have the names of the potential IC officials that would appear just in case. Many thanks From: Campagne, Gaetan: CPO-BSGP ‘Sent: February 2, 2011 10:08 AM To: Champagne, Gaetan: CPO-BSGP; Miler, Pamela: SPS; Scott, Adam: SPS. Ce: Ramsay, Shana: CPO-BSGP Subject: RE: INDU - Fallout from Feb ist In Camera Meeting {correction} ‘The committee is expected to invite IC officials on Thursday to begin the UBB study. 278 00234We have not yet received said invite from the INDU Clerk. | suggest we opt to accept the invite if we can. We can suggest we appear on one of the other dates instead of this Thursday! Gaétan Champagne Parliamentary Affairs Advisor | Conseiller aux affaires parlementaires Parliamentary Affairs, Appointments and Briefings | Services de breffages exécutifs et de relations pariementaires Corporate and Portfolio Office | Bureau du secrétaire général et du Portefeuile Industry Canada | Industrie Canada 236 Queen Street, Ottawa ON K1A OHS | 235, rue Queen, Ottawa ON K1A OHS Gaetan Champagne@ic.gc,ca Telephone | Téléphone 613-943-7089 Facsimile | Télécopiour 613-957-1990 Teletypewriter | Téleimprimeur 1-866-694-8389 Government of Canada | Gouvernement du Canada 279 000235,8.21(1)(a) 8.21(1)(b) Scott, Adam: SPS From: Scott, Adam: SPS Sent: Wednesday, February 2, 2011 11:06 To: Miller, Pamela: SPS. Subject: RE: UBB Update - keeping you in the loop Viler, Pamela: SPS Wednesday, February 2, 2011 10:59 AM Scott, Adam: $PS| : UBB Update - keeping you inthe loop ‘Thanks for the update. From: ‘Scott, Adam: SPS Sent: Wednesday, February 2, 2011 10:33 AM To: Miler, Pamela: SPS Subject: [UBB Update - keeping you inthe loop | know you are focussed on Heritage Ctee Appearance - will try to keep you briefed without overly distracting you a7 0002368.21(1)(a) 8.21(1)(b) Scott, Adam: SPS From: Scott, Adam: SPS. Sent: Wednesday, February 2, 2011 12:32 To: Miller, Pamela: SPS Subject: UBB Facts and considerations Scott, Adar: SPS Monday, January 33, 2011 2:53 PM Morgan, Marta: SPS; Connel, ohn: SPS Miler, Pamela: SPS; Wiliamson, Steve: SPS; Levesque, Joanne: SPS; Tadoran, Andreea: SPS UBB process issues 3 decisions have been issued + May 2010 - framework decision establishing right for incumbent telcos to charge UBB on wholesale service with some conditions (e.g. must apply UBB to all your own customers too) + Oct 2010 - adjustments tothe conditions for imposing wholesale UBB ‘+ Jan 2011 - setting the wholesale rates at 15% discount from retal Appeals ‘+ Assmall ISP from Montreal (Vaxination) appealed the Oct 2010 decision to the GiC; Government has until Oct 2011 to respond ‘+ Deadline now passed for appealing May or October decisions ‘+ January decision may stil be appealed (until April 25), but that decision focussed narrowly on the size of the discount, 261 000237‘Adam Scott Director | Directeur Business and Regulatory Analysis | Analyses industrielle et réglementaire Telecommunications Policy Branch | Politique des teiécommunications Industry Canada | Industrie Canada 300 Slater Street, Ottawa ON K1A 0C8 | 300, rue Slater, Ottawa ON K1A OCB ‘Adam Scott@ic.ac.ca Telephone | Téléphone 613-990-4224 Facsimile | Télécopieur 613-941-1399 Teletypewrter | Teléimprimeur 1-866-694-8389 Government of Canada | Gouvernement cu Canada 262 000238