Voluntary Report - Canada

Canada: Voluntary Report to Plenary

APEC TEL 37, Tokyo, Japan, March 2008

1.Broad Policy Initiatives

Competition Policy Review Panel consultation paper released

On October 30, 2007, the Competition Policy Review Panel, chaired by Mr. L.R. Wilson, released its consultation paper: Sharpening Canada’s Competitive Edge.The Paper outlines the changing international economic context and presents what the Panel believes are the two principal issues for Canada’s economic performance: How best to create the domestic conditions to foster the development of Canadian-based global businesses; and how to best position Canada to be a world-leading destination for talent, capital and innovation. The Panel’s mandate is to focus on investment and competition broadly, including the Investment Canada Act and the Competition Act.The Panel's core mandate is to review two key pieces of Canadian legislation, the Competition Act and the Investment Canada Act, including the treatment of state-owned enterprises and the possibility of a national security review clause. The Panel will also examine Canada's sectoral restrictions on foreign direct investment, and the competition and investment regimes of other jurisdictions to assess reciprocity between their rules and Canada's. Separately, the Panel will also assess how Canada's policies may further encourage outward investment. The Panel will report to the Minister of Industry, on behalf of the Government of Canada, by June 30, 2008 with concrete recommendations to further enhance competition in Canada.

Sharpening Canada’s Competitive Edge poses a number of questions about competition and investment in Canada, the answers to which will inform the Panel’s eventual recommendations. The Panel invited written submissions from Canadians and interested parties on the issues presented in the paper. Sharpening Canada’s Competitive Edge is available at:

Minister of Industry Appoints Members of Science, Technology and Innovation Council

On October 18, 2007, the Honourable Jim Prentice, Minister of Industry, announced the appointment of 17 members to the new Science, Technology and Innovation Council.Canada's Science and Technology Strategy, Mobilizing Science and Technology to Canada's Advantage, committed the Government of Canada to consolidate external science and technology advisory bodies and launch the Science, Technology and Innovation Council. The Council will provide the government with policy advice on science and technology issues and will produce regular national reports that measure Canada's science and technology performance against international standards of excellence. It will play a vital role in providing science and technology advice on issues, identified by government, which are critical to Canada's economic development and social well-being.The Chair of the Council, Dr. Howard Alper, said that the appointees are respected members of the S&T and broader communities and understand the scope and scale of the issues the Council will consider. Dr Alper's appointment as Chair was announced on June 15, 2007. An esteemed member of the international and domestic science community, his first task as Chair was to work with representatives of the federal government to make recommendations on membership to the Minister. These new members will serve in a volunteer capacity. Biographical notes on the Council members are available online at builds on Canada’s new National Science and Technology Strategy: Mobilizing Science and Technology to Canada's Advantage, launched in May 2007.

Trust and Confidence in the E-Economy

Canada continues to work with stakeholders to forge a strategy for building trust and confidence in the Internet through the development of legislative and policy frameworks. Existing elements include privacy legislation ( e-signature legislation ( principles and a code of practice for consumer protection in electronic commerce ( and principles for authentication (

Authentication and Identity Management:

Canada's Principles for Electronic Authentication( were published in 2004 by Industry Canada’s Authentication Principles Working Group. The Principles represent a public/private sector "accord" or shared agreement on how electronic authentication services should be designed, developed and deployed in Canada. The Working Group is currently assessing the need to update the Principles to address technological advances, developments in the marketplace (domestic and international) and new public policy pressures. While the specifics of the forward work plan have not yet been defined, it has been agreed that the Group will review the Principles to ensure their applicability to new authentication environments (e.g., mobile commerce, RFID technology), assess the need for additional policy instruments to underpin the Principles (e.g., to provide additional guidance) and to explore their relationship to identity management in the online environment. The Canadian Government welcomes the opportunity to identify and understand the potential of emerging technologies and trends that can be harnessed to enhance the reliability, viability and sustainability of the Internet. One such area is digital identity management. Canada has recently developed a draft Issues Paper on this subject, and also participates at various international fora (ISO and OECD), where digital identity management has been identified as a key element to ensuring trust and confidence online. More generally, Canada has identified that, in addition to its domestic focus and priorities in this area, it will be important to make linkages and create synergies between the TELMIN program of action in this area and that defined by the OECD at its upcoming Ministerial in June 2008.

Data Breach Notification:

Canada's Personal Information Protection and Electronic Documents Act (PIPEDA) sets rules that organizations must abide by when collecting, using and disclosing personal information in the course of commercial activity, (see for a copy of the Act). The Act is mandated to be reviewed by Parliament every five years after coming into force.In May 2007, the first parliamentary review was completed followed by the tabling of the Government Response to 25 recommendations in October 2007. One element of the response was a legislative requirement for notification of data breaches to establish a consistent approach across the marketplace and encourage all organizations to ensure good security practices.

At the international level, Canada continues to contribute to work aimed at implementing APEC's Privacy Framework, and with the APEC Electronic Commerce Steering Group and the OECD Working Party on Information Security and Privacy, on developing cooperation on cross-border enforcement of privacy laws. Canada is also engaged in discussions on privacy and trans-border data flows with the US and Mexico. These discussions are taking place under the Security and Prosperity Partnership (SPP) Framework of Common Principles for Electronic Commerce.

It continues to be clear that the existing framework must evolve to address the emergence and evolution of threats to the Internet and that additional “ground rules” for the e-economy must be developed. Working at both the national and international level, Canada is examining how threats like spyware, phishing and identity theft can be addressed. In this work, we are focusing on developing comprehensive and forward-looking public/private sector responses. On this basis, the approach is to identify and consider the challenges and themes that are common among these problems.

At the international level, Canada is actively encouraging international cooperation in spam policies and enforcement, including bilateral agreements with various countries and participation in multi-lateral fora including the OECD and the London Action Plan, an International Forum for Anti-spam Enforcement Authorities. To date, bilateral agreements have been concluded with Australia, United Kingdom, Japan, the European Commission and more recently, with Taiwan (November 2006). A meeting between Canada and Taiwanese officials, to discuss the bilateral agreement will take place in June 2008. Bilateral agreements with other countries are in progress.

Evolving technologies create both benefits and challenges for society and steps must be taken to ensure that the technology is not misused for criminal purposes. Canada continues to work on initiatives aimed at ensuring law enforcement and national security agencies are equipped to keep pace with today’s technology. One such initiative involves the creation of a cost-effective regime for telecommunications service providers to build and maintain an interception capability on their networks that allows for the lawful interception of communications by law enforcement and national security agencies. This will ensure that authorities have the procedural tools to investigate high-tech crime as well as traditional crime both domestically and internationally.

At an international level, Canada works with the G8 High-Tech Crime Subgroup to enhance the abilities of law enforcement and industry to gather information on, prevent, investigate, and prosecute criminal and terrorist acts that make use of computer networks and other new Internet and wireless technologies. The role of government and the private sector within the expert group is to create a balance between the needs of law enforcement with public policy interest respecting individuals and industry. This information is essential in the continued development of policies relating to Canada’s agenda to build business confidence and consumer trust in the online environment.

2.Policy and Regulatory Developments in Canadian Telecommunications

Commissioner for Complaints for Telecommunications Services (CCTS)

The Government of Canada called on the telecommunications industry in April 2007 to work with the CRTC to establish an independent telecommunications consumer agency, as part of the federal government's deregulation of local telephone services.

On July 23, 2007, founding telecommunications service providers Bell Aliant, Bell Canada, Cogeco Cable Inc., MTS Allstream Inc., Rogers Communications Inc., Saskatchewan Telecommunications, TELUS Communications, Vidéotron Ltd., Virgin Mobile Canada and Vonage Canada Corp submitted a proposal for the creation of the Commissioner for Complaints for Telecommunications Services (CCTS) to the CRTC for consideration.

On August 22, 2007, the CRTC initiated two public proceedings: (1) to review and approve the organization and mandate of the CCTS; and (2) to consider the delegation of the Commission's investigative powers with regard to Unsolicited Telecommunications Rules complaints. Among the issues to be considered in that proceeding is whether the CCTS would be an appropriate third party to which the Commission could delegate its investigative powers with regard to Unsolicited Telecommunications Rules complaints.

On December 20, 2007, the Canadian Radio-television and Telecommunications Commission (CRTC) granted conditional approval to the Commissioner for Complaints for Telecommunications Services Inc.During the first four months of operation, the agency received over 1,000 complaints and inquiries, and successfully resolved the majority of the complaints it received. Its services are available to consumers free of charge.In its decision, the Commission asked the agency to make certain modifications to its proposed structure and mandate to ensure its effectiveness, as well as its independence from the telecommunications industry. The Commission also determined that service providers and resellers whose annual Canadian telecommunications service revenues exceed $10 million were required to become members of the agency by February 1, 2008.Additional information about the agency can be obtained through its website,

CRTC announces new rules forwholesale telecommunications services

On March 3, 2008,the Canadian Radio-television and Telecommunications Commission (CRTC) established a new framework for wholesale services that will promote competition in wholesale and retail telecommunications markets based on sound economic principles.

Regulated wholesale services are telecommunications services that major telephone and cable companies make available to other competitors at rates and terms that are mandated by the Commission. According to the most recent CRTC Telecommunications Monitoring Report, wholesale services accounted for approximately $3.3 billion of overall telecommunications revenues in 2006, which totalled $36.1 billion. Major telephone companies held a 65-per-cent share of this market segment.

During the past decade, the Commission’s framework for wholesale services evolved on an incremental basis as competition in retail telecommunications markets increased significantly. Given the current environment, it is unlikely that competitors can duplicate in their entirety the facilities owned or controlled by the major telephone and cable companies. No major telephone or cable company today provides all of their services through their own facilities. A healthy telecommunications market should allow for competitors to provide services by using a combination of their own facilities and those leased from other service providers.

Under the new framework, the CRTC has divided wholesale services into six categories: interconnection, public good, essential, conditional essential, conditional mandated non-essential, and non-essential subject to phase-out.

The new framework was developed with a view to ensuring that existing and new competitors continue to have access to the services they need to compete, while at the same time providing incentives for innovation and investments in competing networks.The Commission will maintain the requirement for telephone companies to provide interconnection services to competitors. Interconnection services allow competitors to access telecommunications networks in order that their customers may call individuals who have a different service provider. The Commission will also continue to mandate the provision of wholesale services used to provide services that are in the public interest, such as 911 and message relay services.As part of this proceeding, the Commission revised its definition of an essential service. To be considered essential, a facility, function or service must:

• be required by competitors to provide a retail telecommunications service,
• be controlled by a company that could use its market power to lessen or prevent competition, and
• provide a functionality that would not be practical or feasible for competitors to duplicate.

The Commission has identified a number of wholesale services that should no longer be mandated. These non-essential services will be deregulated over the next three to five years to ensure a smooth transition to a reliance on market forces.

It is expected that more than a third of wholesale services will be deregulated by the end of 2012. In 2013, the Commission will conduct a review of the services that are still mandated at that time. Alternatives to conditionally mandated services may emerge as the industry evolves and new technologies are introduced, and the Commission will entertain further applications to deregulate if the stipulated conditions arise.

In 2006, wholesale services accounted for approximately $3.3 billion of overall telecommunications revenues and major telephone companies held a 65-per-cent share of this market segment. The remaining share was held by major telephone companies operating outside their established territories and other service providers.

CRTC moves a step closer to establishing a National Do Not Call List

In a July 3, 2007, decision, the Canadian Radio-television and Telecommunications Commission (CRTC) set out rules for the creation and operation of a National Do Not Call List (National DNCL) for Canadians who wish to avoid unsolicited calls. These rules will come into effect once an operator has been chosen and the list is fully operational.

Once an operator has been selected and has taken the necessary steps to put the list into operation, Canadians who prefer not to receive unsolicited calls will be able to add, at no charge, their numbers to the database. Telemarketers will be prohibited from calling consumers who are registered on the list. However, there are certain exemptions to the list, most of which are provided for in the Telecommunications Act. These include unsolicited calls made by or on behalf of:

• registered charities;
• political parties;
• nomination contestants, leadership contestants or candidates of a political party;
• opinion polling firms;
• general-circulation newspapers;
• organizations that have an existing business relationship with a consumer; and
• organizations to business consumers.

The CRTC will be in a position to provide clearer timelines once the operator is selected.On July 30, 2007, the Canadian Radio-television and Telecommunications Commission (CRTC) issued a Request for Proposal to find an operator to develop, implement and manage the National Do Not Call List (National DNCL).

On December 21, 2007, the CRTC announced that it has awarded a five-year contract to BellCanada to operate the National Do Not Call List (DNCL). The company was the only bidder that was compliant with the requirements of the Request for Proposal.BellCanada will be responsible for registering numbers, providing telemarketers with up-to-date versions of the list, and receiving consumer complaints about telemarketing calls. In addition, BellCanada will operate the National DNCL using the fees that telemarketers will pay to subscribe to the list. The contract stipulates that the list should be launched by September 30, 2008.

On January 28, 2008, the CRTC announced that it will seek a third party to investigate National Do Not Call List (DNCL) and telemarketing complaints. The third party will work closely with the National DNCL operator and the CRTC to ensure that complaints are dealt with consistently and in a timely manner. All telemarketers, including those making exempt calls, will pay fees to the investigator to cover its costs. The fee amount will be determined once the successful bidder has been selected and is expected to be approximately $100.The Commission will issue a Request for Proposal before the end of February 2008 to solicit bids from parties interested in undertaking the investigative role. With this announcement, the CRTC is another step closer to launching the National DNCL and enforcing the new telemarketing rules.On February 15, 2008, the CRTC issued a Request for Proposal to find a contractor to carry out investigations of all telemarketing complaints. The Request for Proposal is publicly available through the Government of Canada MERX website, at and will close on March 25, 2008.

APEC TEL Mutual Recognition Agreement (MRA):

Canada is actively implementing Phase I and Phase II of the APEC TEL MRA on conformity assessment for telecommunications equipment. Under Phase I, Canada has designated nine Canadian testing laboratories to test to the technical requirements of six participating economies, and has recognized 56 foreign testing laboratories to test to Canadian requirements. For more information on Phase I please visit the following web sites: and