LEVIS, Que. - Industry Minister Jim Prentice raised the prospect of federal regulation Thursday in his continuing battle with Canada's biggest telecom companies over new text-message fees.
Prentice has publicly chastised Bell Canada (TSX:BCE) and Telus Corp. (TSX:T) over their plans to charge 15 cents for each incoming message to cellular telephone customers who do not subscribe to a text-message bundle as part of their calling plan.
The charges could apply to unsolicited spam, including promotional messages sent by the telecom companies themselves.
The Industry minister said he's already met with George Cope, the CEO of Bell, and plans to meet with Telus CEO Darren Entwistle sometime in the next eight days.
"We don't have a heavy regulatory burden on the cellular industry," Prentice told reporters during a media availability outside a Conservative caucus planning session.
"That's something that we have tried to maintain in Canada. At the end of the day, consumers do need to be protected," he added.
Prentice maintained he is not signalling that the Harper government is leaning toward a regulatory response.
But in the same breath, he pointed out that stopping text-message fee increases through regulation is an "alternative" being pursued by the European Union.
Having raised that option, Prentice made a pointed note that Canadian telecom companies are well aware he holds the power to regulate them.
"Beyond regulation, we can have the discussion that we've had and I think it's a respectful dialogue that we have with the cellular industry," said Prentice.
"I think they're cognizant of comments that ministers make -- and they're aware that the telecommunications industry is regulated largely by the minister of Industry."
Prentice, and the Conservative government, have already bucked small-c conservative, free-market ideology this year by refusing to permit the U.S. takeover of Vancouver- based space technology firm MacDonald, Dettwiler and Associates (TSX:MDA).
Prime Minister Stephen Harper's Tories became the first Canadian government ever to use legislated powers under the Investment Canada Act to outright bar such a foreign acquisition.
Asked whether the Conservatives shouldn't just permit competitive forces to sort out the cellphone industry's billing practices, Prentice said he's simply responding to popular demand.
"I think we have been taking an approach that is responsive to Canadians, responsive to the concerns that we've heard," he told a questioner.
"We've not taken any heavy-handed steps, to use your term. We simply indicated we were concerned about the charges that were being proposed. We thought they were at variance with what consumers expected."
Bell's new charges are to take effect Aug. 8, with Telus wading in on Aug. 24.
Canada's cellphone market is dominated by three major players -- Bell, Telus and Rogers Communications Inc.(TSX:RCI.B).
Rogers Wireless customers are not charged for incoming text messages.
