‘Data packets’ not all equal, report finds

INTERNET OF THINGS

It’s not yet clear how networks that support critical applications such as self-driving cars will be set up, who will own them or whether data will travel over public or managed networks. Still, Masse emphasized the need for flexibility in the rules for managing these networks.

The think-tank, a proponent of free markets, also argued the CRTC should back off policies that help smaller players that don’t own their own networks, such as mandated wholesale access to fibre-to-the-home networks. Such policies reduce incentives for major carriers to invest at the margin, the report argued, and network investment will be critical to meet the data requirements of the Internet of Things era.

“If you don’t own your own network you’re not a player, period. You’re irrelevant,” Masse said.

The report does note, however, that investment in physical networks has grown steadily over the past five years. It also touted the high quality of Canada’s networks.

While Masse acknowledged Canada still fares quite well in network quality with the CRTC interventions — the report also credits the CRTC for rejecting Ice Wireless’ attempt to have Sugar Mobile customers roam on Rogers’ network — he said networks would be even better without some of the “bad policies which create artificial competition.”

One such policy that the institute revisited was the federal government’s fourth wireless carrier policy that gave new entrants a deal on spectrum. The three companies that got a deal in 2008 weren’t able to survive on their own, Masse noted, yet the government still required a fourth player as a condition of approving the Bell-MTS deal, with Bell divesting a fraction of its customers to Xplornet, an Internet provider with no experience in mobile phones.

“Why take years to learn again that lesson that we’ve learned over the past decade, that propping up small players is inefficient?” Masse said.