The final version of a new telecom policy directive first unveiled by the federal government in May of last year is now in force.
The government's new directive to the Canadian Radio-television and Telecommunications Commission means the agency must put in place new rules to improve competition in the telecom industry, Industry Minister Francois-Philippe Champagne said Monday.
The directive rescinds a 2006 policy direction that said the CRTC should rely on market forces in making decisions. The government is also directing the CRTC to improve its hybrid mobile virtual network operator model and says it is prepared to move to a full MVNO model to support competition if necessary.
The directive also calls on the CRTC to improve consumer protection in the event of a service outage. In July of last year, a major Rogers Communications network outage affected more than 12 million mobile and internet customers across Canada. In a client note last May, RBC analyst Drew McReynolds said the outcome won't be "game-changing" for major companies like BCE Inc., Rogers Communications Inc. and Telus Corp., but is likely to be "directionally negative over time" for these big players.
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