TELUS Corporate Citizenship & Communication 510 W Georgia St Vancouver, BC Canada V6B 0M3 9 December 2024 Standing Senate Committee on Transport and Communications the Senate of Canada Ottawa, Ontario Canada K1A 0A4 Copper wire theft in the telecommunications industry Copper theft poses a significant and growing threat to Canada's essential telecommunications services. This critical issue requires immediate attention from policymakers as it directly impacts public safety, economic stability, and the effectiveness of our national infrastructure. TELUS is committed to ensuring high-quality, resilient services.

However, the escalating issue of copper theft leads to service disruptions that impact our customers' access to critical communications during emergencies and hinder daily business operations. Copper theft is TELUS’ most avoidable outage driver impacting customers. The rise in the frequency and regularity of copper theft incidents in Canada is alarming, impacting communities from across the country. Public safety is at significant risk when outages prevent access to 911 or access to critical information during emergencies.

First responders face severe challenges when telecommunication services in police, ambulance, and fire departments are disrupted, impacting their ability to dispatch and respond effectively to emergencies. The economic consequences are equally concerning, with businesses facing disruptions in credit card transactions and online orders. Since 2023, TELUS has witnessed a 46% increase in copper theft. In BC, the consequences for our customers have escalated dramatically, with a 525% rise in impact compared to last year. In Edmonton alone, we’ve seen a 238% increase so far in 2024.

Since 2021, copper thefts have disrupted over 200 million minutes of service, impacting more than 170,000 individuals and families. These numbers represent real people facing potential safety risks, businesses unable to operate, and communities cut off from essential services. These risks underscore the urgent need for action to protect our critical infrastructure and ensure the continuity of essential services.

TELUS Corporate Citizenship & Communication 510 W Georgia St Vancouver, BC Canada V6B 0M3 Image: Incidents of copper and fibre cable theft, vandalism, and damage since Jan 1, 2024 To address this pressing issue effectively, we would like to highlight the following key recommendations: 1. Amend the Criminal Code of Canada: Introduce specific penalties for damaging critical telecommunications and power infrastructure. These penalties should reflect the severe community-wide impact of such crimes, not just the value of stolen materials.

Disruptions affect businesses, healthcare, and emergency services, far exceeding the impact of typical theft under $5,000. Stricter penalties would recognize the true cost to communities and serve as an effective deterrent, protecting vital systems that ensure public safety and economic well-being. 2. Amend the Telecommunications Act: The current Act does not adequately recognize the impacts of copper theft and damage. We propose adding provisions that require authority to distribute, lease, sell, or import telecommunications apparatus, and prohibit dealing in illegally obtained copper.

These measures would effectively disrupt the supply chain for stolen telecommunications materials by eliminating viable paths to market. This federal approach could complement provincial regulations, creating a comprehensive framework to combat copper theft across all jurisdictions. TELUS Corporate Citizenship & Communication 510 W Georgia St Vancouver, BC Canada V6B 0M3 3. Encourage Improved Provincial Regulations for Scrap Metal Dealers: As scrap metal dealers fall under provincial jurisdiction, we recommend federal leadership to encourage standardization and best practices across provinces.

We also encourage provinces to review their regulations as Alberta is currently doing. Key areas for improvement include enhancing education for dealers on identifying potentially stolen materials, increasing the capacity and frequency of dealer inspections, implementing standardized electronic reporting systems for all copper-related transactions, establishing a provincial registry of authorized copper sellers, only allowing residents to sell copper in province, and regulating payment methods to ensure all transactions are traceable.

These measures, when implemented consistently across provinces, can significantly impede the ability of thieves to profit from stolen copper. 4. Law Enforcement Collaboration: Additionally, Canada needs integrated and coordinated investigations and collaboration across different levels of law enforcement to effectively combat the organized criminal activity of copper theft. This could include a dedicated metal-theft task force and improved information sharing between jurisdictions.

Other countries have seen success in dropping their copper thefts by implementing such measures - Canada is lagging behind on this front. In the UK, for example, copper theft cost the British economy an average of £1 billion pounds per year. Following the introduction of Operation Tornado, which enabled law enforcement to trace sellers of scrap metal and made it harder to pass on illegitimately obtained copper and other metals, the UK saw a 51% drop in copper theft. The urgency of this situation cannot be overstated.

Swift and decisive action is needed to get ahead of this escalating problem and protect the vital telecommunications infrastructure that Canadians rely on every day. Addressing copper theft requires a collaborative approach between federal and provincial governments, as well as industry stakeholders. By implementing these recommendations, we can create a robust framework to deter copper theft and protect critical infrastructure. More importantly, these actions will safeguard the communities we serve, ensuring uninterrupted access to essential services that Canadians rely on daily.

From emergency communications to business operations, the reliability of our telecommunications services is crucial for the safety, well-being, and economic stability of communities across the country. TELUS Corporate Citizenship & Communication 510 W Georgia St Vancouver, BC Canada V6B 0M3 Sincerely, Brian Lakey Vice-President, Reliability Center of Excellence Devon Aransevia Senior Strategy Manager Public Policy