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LYA
in the Media
Manitoba
Telecom Services (MTS) - NEWS RELEASE
January
25, 2005
New
study shows Canadian telecom policy and regulatory framework
compares well with that of the U.S., U.K., Europe
Wholesale Access key
No need for a Policy Review
Winnipeg, January 25, 2005 – Lemay-Yates
Associates Inc.’s landmark State of Telecom
Policy Framework in Canada study, to be issued today,
concludes that Canada’s telecommunications industry
is well ahead of the industry in the United States,
the United Kingdom, and elsewhere in Europe, and there
is no need for a general review of the regulatory policy
framework that underpins it.
“This study shows that Canada and the CRTC have the
right tools to create true and vigorous competition
in Canada; and that can only benefit consumers,” said
Chris Peirce, Executive Vice-President Government &
Regulatory Affairs, Manitoba Telecom Services Inc. “In
our view, it further validates that the dominance of
Bell, which represents nearly 50% of the market, is
not good for Canada, for competition, or for consumers,
as it ultimately gives Bell the power to control pricing
and market share.” [For a chart showing the marketshare
split between the top 8 telecom carriers in Canada and
the United States, illustrating the dominance of Bell
Canada versus a more competitive dynamic in the U.S.,
please see the backgrounder at www.mts.ca/backgrounder.]
The study, conducted by Lemay-Yates Associates
Inc., found that the Canadian legislative framework
set out in 1993 was indeed forward-looking and anticipated
future technology changes, such as the development of
high speed data services, like the Internet, and voice
services like Voice Over Internet Protocol (VOIP), for
residential and business customers. On a comparative
basis with the US and the EU, Canada is well ahead in
terms of having a sound telecom policy framework in
place. Canada compares favourably along a number of
analytical lines, covering broad policy objectives,
addressing broadband have-nots, managing subsidies,
meeting universal service obligations, and addressing
convergence.
The 113-page report, prepared for MTS Allstream Inc.,
also indicates that the OECD and the ITU have praised
Canada for:
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the universal availability of telecommunications services
across the country;
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Canada’s high rates of penetration for telecommunications
services (i.e. the percentage of Canadians who use
the services); and
-
the supportive government involvement in the rollout
of broadband services.
It is expected that the Canadian telecommunications
market will continue to experience leading-edge innovation
in 2005, so long as the regulatory environment promotes
competition. While the study concludes that there is
no need for a general review of telecom policy, there
are specific implementation and regulatory issues that
require attention and need to be urgently addressed
going forward. The significant lag in regulatory decision-making,
for example, has had a profound impact on competitive
carriers.
MTS Allstream commissioned this report in order to obtain
an objective third-party perspective, from a firm with
expertise in policy and regulation, on the health of
the Canadian telecommunications industry and the current
policy that regulates it. This study shows that the
complaints of the giant incumbents like Bell, who have
suggested that Canada’s telecom policy requires an overhaul,
have no foundation.
The report is very timely, as the CRTC is expected to
release key decisions in the near future regarding competitive
access to digital networks and regarding the regulatory
treatment of VOIP services. These upcoming decisions
place the CRTC in an excellent position to foster increased
choice and value for Canadians.
A copy of the full Lemay-Yates Associates
report is available to interested members of the media.
To request a copy of the report, please contact Robert
K. Yates at 514-288-6555 or via email at lya@lya.com.
Lemay-Yates Associates Inc. (LYA) was
founded in 1993. LYA provides management consulting
services to a broad array of clients in Canada and abroad.
LYA’s expertise covers three areas: financial analysis
and project valuation, market research and regulatory
support and policy development. In the regulatory and
policy area, LYA has participated in the major proceedings
and processes in Canada since its founding. LYA has
developed expert testimony, appeared as witnesses in
proceedings, analysed implications of policy and regulatory
decisions, and provided support for monitoring of the
industry. LYA’s web site is located at www.LYA.com.
MTS is Canada’s third-largest national communications
provider, with 7,000 dedicated employees focused on
delivering outstanding value to its customers. Seamlessly
blending innovative solutions and world-class technology,
MTS connects its customers to the world. Through its
Manitoba operations, MTS serves residential and business
customers in the province, with a full suite of wireline
voice, data services, wireless, and MTS TV services.
MTS’s Allstream division serves national business customers,
with a world-class portfolio of connectivity, infrastructure
management and information technology services. Spanning
more than 18,800 kilometres, MTS has an extensive national
broadband fibre optic network and provides international
connections through strategic partnerships and interconnection
agreements with other international service providers.
MTS’s common shares are listed on The Toronto Stock
Exchange (trading symbol: MBT). MTS’s Web site is located
at www.mts.ca.
For further information, please contact:
Media: Bonnie Staples-Lyon
Vice-President
Corporate Communications
204-941-7654
media.relations@mts.ca
Investors:
Brad Woods
Director Investor Relations
(204) 941-8283
investor.relations@mts.ca
MTS
Website: http://www.mts.ca
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