Canada has been transformed in recent years into an information based society. Nearly half of the
labour force in Canada works in occupations involving the collection and processing of information. In a
society in which information has become a commodity, communications provide a vital link that can mean
the difference between success or failure. Telecommunications is a fundamental infrastructure of the
Canadian economy and society. For these reasons, an efficient and dynamic telecommunications industry is
necessary to ensure economic prosperity. Deregulating the Long Distance Industry is the only sure way to
ensure that prosperity.
Telecommunications in Canada, which include ...view middle of the document...
In addition, in 1990 the
telecom industry achieved a real growth rate (after inflation) of 8.6 percent compared to 0.3 percent for
the Canadian economy as a whole. Telecommunications is also Canada's leading high-technology industry;
its Research and Development costs of $1.4 billion in 1990 represent about 24 percent of total
expenditures in this area. This shows how telecommunications has come to play such a vital role in our
society, in addition to being our most important high technology indus!
try (Dept. of Communications, 1992, p9-12).
Changes are constantly taking place in the telecom industry. These changes are caused by rapid
progress in telecommunications technology, growing demand for new services, the globalization of trade
and manufacturing operations, and increasing competition worldwide. It is also important to note that the
Canadian telecommunications market of $15 billion is small compared to those of our major trading
partners, the United States ($185 billion), the European Community ($125 billion) and Japan ($65 billion)
(Blackwell, 1993, p26). These factors were a mounting source of pressure on the previous regulatory
structure of the Canadian telecom system. As regulation was eased in other countries around the world,
Canada was beginning to lose its competitiveness. The USA and Britain have made strategic decisions to
increase competition in telecommunications services and to modernize their "information infrastructures".
Other countries such as Japan, Australia, and New Zealand are followin!
g their lead. The European Community is considering legislation to unify the European telecommunications
market next year (Blackwell, 1993, p22). In order to not be left behind, Canada updated its
telecommunications legislation to bring it in line with world developments. For example, a key piece of
legislation that regulated telecommunications, the Railway Act, dated back to 1908 (Beatty, 1990, p135).
Clearly, with such "ancient" legislation, new policy was required that would allow a more
flexible regulatory system, and not hamper the development of our telecommunications industry (as the
Railway Act did). The first steps toward such a policy were taken in 1987 by the Minister of
Communications, who outlined three basic principles to guide telecommunications policy making:
Maintaining a basic telephone service which is affordable and universally accessible;
Encouraging development of an effective and efficient telecommunications infrastructure; and
Permitting Canadians in all regions to have access to the same levels of competitive services
(Beatty, 1990, p42).
Bill C-62 - the Telecom Act, passed in June of 1993, brought these principals to reality. In addition,
the legislation gave Canadian Parliament legislative authority over the principal telecommunications
"common carriers" (i.e. Bell Canada, Alberta Gov't Telephone, BC-Tel) in Canada.
The new legislation defines the powers of the federal...