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BCE Inc. Review of the Canadian Communications Legislative Framework — Comments Page 1 of 167 REVIEW OF THE CANADIAN COMMUNICATIONS LEGISLATIVE FRAMEWORK COMMENTS OF BCE Inc. 11 JANUARY 2019 14)- Page: 31 BCE inc Review of the Canadian Communications Legislative Framework - Comments Page 2 of 187 Table of Contents Page EXECUTIVE SUMMARY 4 1.0 INTRODUCTION 14 1.1 About Bell 14 1.2. Structure of our Comments 18 2.0 CONTEXT AND THE TASK FOR THE PANEL 18 2.1 Canada has a long history of success in the communications industry 18 2.1.1 Networks that bring us together 18 2.1.2. Content that brings us together 21 2.1.3 Direct contribution to Canada’s economy 24 2.2 Weare now in the industry's most competitive period in history. 25 2.2.1 Telecommunications 26 2.22 Broadcasting 30 2.3 Implications for the Panel 33. 3.0 PUBLIC POLICY PRIORITIES FOR CANADA - 34 3.1. Priority 4: Presumptive support for facilities-based competion. 35 3.11 Facilties-based competition supports the roll-out of advanced telecom networks across Canada 36 3.1.2 Policy consensus supporting faciliies-based competition 38 3 Mandated access undermines investment without improving outcomes. 40 3.1.4 Effective model for supporting faciities-based competition. 42. 3.2 Priority 2: Accelerate access to municipal infrastructure. 44 3.3 Priority 3: Eliminate the regulatory advantages given to foreign television services 45 3.3.1 Foreign services are not "complementary" 47 3.3.2. Effective model for regulatory parity 50 3.4 Priority 4: Fix the local television business model to support news journalism... 3.44 The importance of local television 53 3.4.2. Effective model for sustaining local television 54 3.5 Pnority 5: Combat content piracy 55 3.5.1. The impact of piracy in Canada 56 3.5.2. New tools for rghtsholders. 58 3.68 — Phority 6: Avoid prescriptive cybersecurity rules that inhibit industry responses to cyber threats 60 3.6.1. Implications for public policy 61 3.7 Priority 7: Close the Internet platform privacy gap 61 3.71 Competition with global platforms. 61 37.2. Inconsistent standard 62 3.7.3. How to close the Intemet platform privacy gap 63 38 Priority 8: Provide oversight for thresnold economic decisions made by the Commission 64 3.8.1. Benefits of increased oversight. 65 3.8.2 Effective aporoach to oversight 66 {A-2018-01014) - Page: 32 BCE Inc, Review of the Canadian Communications Legislative Framework — Comments 40 5.0 60 Page 3 of 167 TELECOMMUNICATIONS POLICY ANALYSIS 67 4.1 Wireline competition and policy analysis 68 4.4.1 Investment 68 4.1.2 Access to advanced networks and innovative services. 7 4.13. Penetration, usage, and affordablity 72 4.1.4 Market dynamics 76 4.1.5. The need to recommit to facilties-based competition at 42 Wireless competition and policy analysis 85 4.2.1 Investment. 86 4.2.2 Access to advanced networks and innovative services 88 4.2.3 Penetration and affordability 89 424 Market dynamics 92 425 The need for regulatory certainty 98 43. Recommended changes to the Telecommunications Act 10 43.1, Telecommunications policy objectives. 102 4.3.2 Modernizing the test for regulation, 103 43.3. Just and reasonable rates 1 4.3.4 Other changes to promote facilties-based competition 112 43.5 Reorienting the Commission toward social policy goals. 114 4.3.8 Supporting the deployment of network facilities. 116 4.3.7 Additional changes to modemize the Telecommunications Act and increase transparency 120 44 Recommended changes to the Radiocommunication Act 122 4.4.1 Adding Canadian Radiocommunications Policy Objectives 124 44.2. Proposed Changes to Prescribing Fees, 133 BROADCASTING POLICY ANALYSIS. 135 5.1 The Internet is replacing tracitionel distribution 136 5.2 The distinct Canadian rights market is eroding 139 5.3 Advertising is no longer a reliable revenue stream 139 5.4 — Consumers in Canada are well-served 141 5.5 The production and cuitural prominence of Canadian content is at risk 144 5.6 Recommended changes to the Broadcasting Act and related policies 148 5.6.1 Focus the Commission an modem cultural regulation 148 562. Eliminate the regulatory advantage given to foreign services 180 5.63 Adopt a sustainable model for local television 155 ADMINISTRATION AND OTHER ISSUES 182 6.1 Appeal and judicial review 162 62 Competition Tribunal oversight of compettion economic decisions 165 (A-2018-01014)- Page: 33