In 2024, we expect that Canadian telecommunications regulatory authorities will continue to promote the deployment of advanced telecommunications networks while calibrating long-standing priorities to promote investment in network infrastructure with initiatives to enhance consumer welfare and to ensure that consumers reap the benefits of increased competition – such as rivalrous behaviour, differentiated offers and lower prices.

Canada's universal access targets on track

The COVID-19 pandemic generated heightened urgency for Canada to deploy broadband infrastructure to advance its universal access goals. After a strong push to deploy new broadband infrastructure to underserved Canadians, the Government of Canada – in collaboration with the Canadian Radio-television and Telecommunications Commission (CRTC), provincial governments and service providers – has made significant progress in advancing its objective of extending high-speed broadband connectivity (i.e., speeds of 50 Mbps download and 10 Mbps upload (50/10 service)) to all Canadian households by 2030. As of December 28, 2023, the Government has confirmed that 93.5% of Canadian households now have access to 50/10 service and that it is on track to exceed its target of extending 50/10 service to 98% of Canadians by 2026. In 2024, we can expect to see additional awards granted under Canada's CA$3.225 billion Universal Broadband Fund and the CRTC's Broadband Fund to extend high-speed connectivity to the final Canadian households that continue to lack access to 50/10 service.

Given that Canada is on track to achieve its universal access targets through current initiatives, in 2024, the CRTC will decide what role its Broadband Fund may play in the future. For example, moving forward, the Broadband Fund could be adjusted to fund advanced mobile wireless services, to support on-going network operations costs in rural and remote regions, or to fund redundant transport infrastructure to improve the reliability of rural networks.

Continued emphasis on network reliability and security

The reliability and security of telecommunications networks have come into relief as significant government priorities. Contextual factors, such as extreme weather events that both threaten and underline the importance of reliable and resilient communications infrastructure and shifting geopolitical tides, have contributed to this trend. In 2024, we are watching for:

  • Continued initiatives to further the Government of Canada's Telecommunications Reliability Agenda, including a CRTC decision establishing new reporting and notification obligations that service providers will need to observe in the event of a major outage;
  • Further CRTC action to establish minimum standards for network-level botnet blocking by network operators; and
  • Enactment of Bill C-26, An Act Respecting Cyber Security, amending the Telecommunications Act and making consequential amendments to other Acts (Bill C-26), which, among other things, proposes to enact a new Critical Cyber Systems Protection Act that would impose cybersecurity reporting and compliance program requirements on operators of critical cyber systems. Having passed second reading in the House of Commons, Bill C-26 will be studied by the House Standing Committee on Public Safety and National Security before passage through both houses of Parliament.

Promotion of competition, affordability and consumer rights in telecommunications markets

Competition, affordability and consumer rights are expected to be the CRTC's predominant focus in 2024. While work is on-going to increase facilities-based competition in the mobile wireless marketplace, the CRTC is turning its attention to wireline broadband Internet access services. Noting that the market share of independent (resale-based) Internet Service Providers (ISPs) dropped by 47% in Ontario and Québec between 2020 and 2022, the CRTC is seeking to expand resale of the incumbents' fibre networks through a comprehensive review of its regulatory framework for mandated wholesale wireline high-speed access services. Given that this proceeding has the potential to enable immediate and widespread competition from resale-based ISPs, it is likely to be highly contentious and prolonged.

In areas where resale-based competition is less likely to emerge, the CRTC may impose other measures to further the interests of users. In 2024, the CRTC is expected to issue a decision in a significant proceeding that examined the state of telecommunications services in Canada's Far North and that may, among other things, establish new subsidies to improve the quality and affordability of service for residents in Canada's northern territories.

This year, we also expect the CRTC to issue a decision concerning its recently concluded review of video relay service and to initiate new reviews of its most recent consumer code, the Internet Code of Conduct, as well as of the Commission for Complaints for Telecom-television Services, which administers the CRTC's consumer codes.

Spectrum policy to support new wireless providers and applications

The global transition to 5G services has stimulated a proliferation of connected devices and driven new demand for spectrum from parties beyond large network operators. Canada's spectrum regulator, Innovation, Science and Economic Development Canada (ISED) continues to release spectrum and adopt innovative licensing and spectrum assignment measures to ensure that Canadians, and a diversity of network operators, have access to adequate spectrum to participate in a 5G world. Having undertaken a major reform of the satellite licensing policy framework in 2021-23, in 2024, we will be watching for significant policy reforms and initiatives to modernize the licensing and fee frameworks for terrestrial spectrum.

To support private industry and rural and Indigenous communities, ISED has recently adopted a new non-competitive local licensing (NCL) framework that will provide spectrum licences on a first-come, first-served basis to providers seeking to serve areas smaller than traditional licence tiers. In late 2024 or early 2025, ISED is expected to begin issuing licences using its NCL framework to allocate prime 5G spectrum in the 3900 MHz band.

In 2024, we also expect to see ISED issue a licensing framework for millimetre wave (mmWave) spectrum in the 26 GHz, 28 GHz, and 38 GHz bands that accounts for a wide range of network operators. ISED's allocation of mmWave spectrum will be its last major spectrum release to support 5G networks in Canada, and along with a main auction of licences, we are expecting ISED to ensure access to spectrum by smaller providers and private networks by adopting pro-competitive measures within the auction process and reserving spectrum for allocation using its NCL framework.

ISED has also recently determined that it will implement a new access licensing framework, which will permit new licences to be issued with respect to allocated, yet undeployed, spectrum, consistent with ISED's long-established use-or-lose-it approach to spectrum licensing. Spectrum licences will be made available through this new framework on a first-come, first-served basis, with frequencies within the 800 MHz and Personal Communications Services bands being initially eligible. ISED will also make radio licences available through the new framework within the 900 MHz band. In 2024, ISED will continue its work to implement access licensing in conjunction with a new policy initiative to promote priority access to spectrum to serve Indigenous needs.

Beyond facilitating access to licensed spectrum, ISED is also working to increase access to licence-exempt spectrum, particularly to support new Wi-Fi-based and Internet of Things applications.

Competition Bureau oversight of telecommunications markets

In addition to the core telecommunications regulators, Canadian telecommunications markets remain within the sights of the Competition Bureau of Canada (Bureau). Following its unsuccessful challenge of the merger of Rogers Communications Inc. (Rogers) and Shaw Communications Inc. in 2023, the Bureau has recently launched an investigation into claims made by Rogers respecting the unlimited nature of certain mobile wireless data plans to assess whether these claims are compliant with the deceptive marketing provisions of the Competition Act.

It will be interesting to see if the Bureau will have the opportunity to wield its merger review powers in the telecommunications space in 2024 and, if so, how it will do so in light of recent experience and proposed amendments to the Competition Act. For a comprehensive overview of those amendments, see a recent Insights article from Dentons' Competition group here.

To read other articles in the Dentons' Pick of Canadian Regulatory Trends to Watch in 2024 series, click here.

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