Panel says deregulation of the telecom market essential to boost productivity

Canada's two biggest high-tech industry associations are applauding the recommendations of the Telecommunications Policy Review Panel which calls for accelerating the pace of deregulation of competitive telecom markets, a less intrusive role for the Canadian Radio-television & Telecommunications Commission (CRTC) and the creation of incentives to encourage the adoption of information and communications technologies (ICT).

The Information Technology Association of Canada (ITAC) and the Canadian Advanced Technology Alliance both endorsed the panel's findings, while ITAC called on the government to implement its recommendations.

The panel, headed by Gerri Sinclair, argues that deregulation will have a strong positive impact on the creation and adoption of information and communications technologies (ICT) that will lead to significant productivity gains. Only deregulation, it argues, will allow the sector to thrive and prosper in a global environment being refined by profound changes in technology and markets.

It calls on the government to mandate the Industry minister to develop and implement an ICT adoption strategy that strengthens linkages between ICT R&D and its adoption in the economy and society at large. Such a strategy should include an ICT tax credit to encourage ICT adoption, particularly among smaller businesses. The strategy should be formulated with the assistance of a National ICT Advisory Council composed of representatives from the private sector, universities, research institutions and others

"The call for adoption and training incentives and a national strategy for accelerating adoption is a huge boost for the campaign to improve Canadian productivity," ITAC president & CEO, Bernard Courtois, said in a written statement.

The massive report contains an avalanche of 127 recommendations broken down into nine categories including ICT policy, connectivity and policy-making and regulatory institutions.

As part of a national ICT strategy, the panel recommends completing the rollout of broadband networks by 2010. A Ubiquitous Canadian Access Network program would provide subsidies to service providers to undertake the high-cost work of connecting work to small urban, rural and remote areas.

As for the much-maligned CRTC, the panel says it should be removed from economic regulation "except in circumstances designed to protect end-users or maintain competitive markets". It should also take over the regulation and licensing of spectrum from Industry Canada. Also recommended is the creation of a Telecommunications Competition Tribunal as a transitional mechanism until further review of telecommunications policy is completed.

Industry minister Maxime Bernier says he is open to the panel's recommendations.

R$