New Telecom, Cable Rules Will Affect Landlords

by Philip Dewan, President, The Fair Rental Policy Organization of Ontario

When landlords and property managers think of government agencies that have a direct impact on their business, their attention is naturally focused on the Residential Tenancies Branch. However, there is
another, more distant body that is currently in the process of establishing rules which may open, or forever close, doors of opportunity for landlords.

The Canadian Radio-Television and Telecommunications Commission (CRTC) is in the process of establishing the ground rules for "inter- connection" in the cable TV and telephone service markets. What this means is that as new entrants are allowed to compete with the former monopoly providers (M.T.S., Shaw, Videon) and attempt to entice customers to their phone or broadcast service, there must be rules for interconnection between systems, ownership of wiring, transfer from one company to
another, and many related issues.

How are landlords involved? As the owners of Multiple-Unit Dwellings (MUD's) you have a vested interest in ensuring that your property and management rights are taken into consideration. For example, do
you really want an unlimited number of broadcast providers to all have the right to run cables through, or on the outside of, your buildings in order to provide access to any customer who requests their service?

Until recently landlords have been virtually unrepresented in the CRTC process. The Canadian Federation of Apartment Associations, representing land-lord groups across the country, has now become very active in these discussions. CFAA is working cooperatively with the
Building Owners and Managers Association (BOMA), representing commercial landlords, and the Canadian Institute for Public Real Estate Companies (CIPREC), whose members are large landlords of commercial and residential portfolios, to be sure that landlord's concems are heard at the table. On behalf of CFAA, Philip Dewan and several colleagues across the country have participated in meetings and conference calls of two major sub-committees of the CRTC.

Many of the technical issues concem only the existing carriers and the new entrants. Others though, are of real import to landlords:

Can you enter into exclusive arrangements with cable providers to allow only one company to access your building in return for financial considerations?
If more than one company must be allowed, can competition be served by limiting this to a reasonable number, i.e. 2 to 4 providers?
What compensation can you receive for managing access by telecom and cable providers?
Who will own the in-building wiring for both telephone and cable - the former monopoly providers, a new entrant who makes a deal with the monopoly or the building owner?
If the wire is deeded to the landlord, will you have a choice in whether to accept it, and what maintenance obligations and costs will this entail? What opportunities might it generate?

Discussions on these issues are continuing daily, and the ground shifts at a rapid pace. Until several weeks ago, the telephone companies had insisted they would continue to own in-building wiring; now they are proposing to tum it over to any landlord who wants it. However, some consumer groups are objecting to this.

As this issue has the potential to significantly affect our industry, a position paper was submitted to the CRTC this past January. We are now awaiting the CRTC's
decision.

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