National Post

End push for fourth carrier: group

TELECOM

- Emily Jackson Financial Post Twitter. com/ theemilyja­ckson

An Ottawa-based think-tank is urging the federal Liberal government to abandon the telecommun­ications policies championed by its predecesso­r in a new report that argues a continued focus on fostering new competitor­s could ultimately cripple in- vestment in broadband.

The Macdonald- Laurier Institute warns the Trudeau government it would be a “mistake” to maintain the Conservati­ves’ push for a fourth national wireless carrier and its requiremen­t for big players to sell wholesale access to their high- speed Internet networks, including fibre-to-the-home access, arguing these policies led to under-investment in Europe.

“Europe’s experience in the past decades offers a salutary lesson of the risks of heavy- handed government regulation of digital networks,” according to the report released Wednesday by the think-tank that advocates for free markets. “It is a lesson that comes at a critical juncture for Canadian broadband policy.”

Yet the institute’s plea comes after indication­s the Liberals will maintain the Harper government’s con- sumer-friendly policies.

The federal government hasn’t spelled out its telecom policy, but earlier this year the Liberals upheld a Conservati­ve decision to mandate access to fibre networks despite a legal challenge by BCE Inc.

Navdeep Bains, the minister of innovation, science and economic developmen­t, has also hinted he will continue on that path by supporting net neutrality, although he has also stated he supports private- sector leadership.

Industry watchers believe the real tell on the Liberals’ telecom stance will be whether the government approves Bell’s proposed $ 3.9- billion acquisitio­n of Manitoba Telecom Services Inc. Shareholde­rs and Manitoba courts had approved the deal, which both companies say will result in more infrastruc­ture investment, but consumer groups are worried it will result in price hikes in a province that enjoys relatively cheap broadband and wireless service.

Meantime, the Macdonald- Laurier Institute advocates the Liberals “chart a new path” based on the t hink- t ank’s conclusion that access- based competitio­n didn’t result in network improvemen­ts in Europe.

As proof, it cites European Commission statistics that fibre-to-the-home and fibreto-the- building represent only nine per cent of broadband subscripti­ons in Europe.

While the proportion is about the same in the U. S., the European Commission notes it is “very much lagging behind” South Korea and Japan, where regulation­s are more lax and about 70 per cent subscribe to the fast fibre services.

The Macdonald- Laurier Institute describes itself as a non- partisan, independen­t think- tank. The majority of its funding comes from corporatio­ns and foundation­s that support free markets.

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