Industry Minister François-Philippe Champagne's department is seeking comments on a proposed arbitration process that would enforce timelines and conditions on the telecoms’ negotiations around Toronto's subway system.Nathan Denette/The Canadian Press
The federal industry department is jumping into the escalating dispute over the construction of wireless networks within Toronto’s subway system, laying out new timelines aimed at speeding up an arrangement between the telecoms.
Industry Minister François-Philippe Champagne previously vowed to step into the dispute after urging Canada’s major wireless providers to work out a deal on their own. Now, his department is seeking comments on a proposed arbitration process that would enforce timelines and conditions on the telecoms’ negotiations.
“While all carriers expressed an interest in a co-ordinated solution, progress in negotiations has been limited. Despite my request to do so, the carriers have not reached an agreement,” Mr. Champagne said in a news release late Monday. “That is why I am taking action to address this situation.”
Since Rogers Communications Inc. RCI-B-T acquired the rights to develop wireless service in the Toronto Transit Commission subway system in April, rivals Bell Canada BCE-T and Telus Corp. T-T have argued for a joint model in which all three telecoms would build the network together, as has been done in Montreal. But the companies have yet to come to an agreement, and have since roped Canada’s telecom regulator into the process.
In a statement, Rogers said it committed from the outset of the project to work with other carriers.
“We will participate in the consultation while we continue to do what’s right for Toronto and transit riders – working with the TTC to stabilize the aging cellular network, improve the reliability of 9-1-1 services, and bring 5G to riders.”
To ensure the process moves quickly, the federal department of Innovation, Science and Economic Development laid out a series of tight timelines in its latest consultation document. It has proposed a deadline of 30 days for the companies to negotiate a commercial agreement following the release of ISED’s report at the conclusion of its consultation.
If the companies do not reach a deal in that time, they would be required to go to commercial arbitration, with a limit of 70 days to conclude that process.
Following this 100-day period, ISED will require that the companies have technology in place to offer voice, text and data services in all subway stations within six months, and in 80 per cent of tunnels within two years. All tunnels must have service within three years.
The department is now seeking comments on the consultation process, including over what entity should be responsible for final arbitration. The initial comment period will end Aug. 8, and then respondents will have a further 15 days to provide additional feedback.
ISED said that a lengthy delay to commercial agreements would be “significantly detrimental” to TTC passengers, according to its consultation web page posted Monday.
The companies are also awaiting a decision from the Canada’s telecom regulator over the dispute.
In June, Bell asked the Canadian Radio-television and Telecommunications Commission to prohibit Rogers from onboarding its own customers onto the TTC network until it is able to provide access to all wireless carriers, alleging it is attempting to gain a commercial advantage by delaying access for non-Rogers customers for “as long possible.” Rogers, for its part, has insisted that BCE and Telus have mischaracterized its commitment to working together.
“Bell will actively participate in the government’s consultation to ensure our customers have access to world-class wireless services underground in the TTC subway system,” Bell spokesperson Ellen Murphy said. “Bell has been advocating for a joint a model for wireless service in the TTC for over a decade, which we believe is in the public interest.”
“Rogers has not yet engaged in serious negotiations to provide wireless access for all TTC riders,” said Telus spokesperson Kalene DeBaeremaeker. “We are encouraged to see an expedited timeline on the consultation announced today and we remain ready and eager to find a path to delivering the best service for all TTC riders, as quickly as possible.”
Currently, only Freedom Mobile customers have access to the network, which covers subway station platforms, concourses and only about a quarter of the tunnels. However, all riders are able to make emergency 911 calls.
With reports from Alexandra Posadzki