End push for fourth carrier: group
TELECOM
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.