Canadians have long complained they are getting shafted on their internet — and indeed wireless phone — bills.
That’s because Canada’s telecom landscape has long been commanded by just three providers, two of which were provincially government controlled monopolies that continue to dominate their respective geographic regions: Telus, Bell and Rogers.
Now the Competitive Network Operators of Canada (CNOC) is hoping that will change with the closing of a regulatory loophole that effectively allows them to shut out competition from their wireless networks and collude to keep prices high.
That’s because they’re allowed to both own and operate their networks in such a way that allows them to tailor speeds and coverage to their advantage, shutting out smaller regional providers that still rely on them to access their systems at reasonable rates.
For instance, it’s a common practice to resell internet among their own networks — Telus out west and Bell in Eastern Canada — that allows them to crush smaller players and eliminate the competition by taking advantage of pricing structures that were not designed for them.NOC
“People appreciate it when somebody picks the phone and knows them, right?”CNOC President and Chairman Paul Andersen
Paul Andersen, CNOC president and chairman, compares it to the ‘golden era’ of government controlled telcos that were eventually forced to open the phone system to allow competition. That in turn, brought prices own and opened the market to outside competition.
“Our concern is that the market has eroded because of the way the regulations have been in short term,” CNOC president and chairman Paul Andersen told The Western Standard in an interview.
“So we just think that ensuring that there's the right framework, while ensuring that the three incumbents have been incentive to invest and continue to build out these networks.”
The group has lobbied the federal government to modify the rules to force the telcos to not only continue to build out high speed networks in underserved regions — like the North — but also open them up at reasonable cost.
Assuming their isn’t a change of government in the next 90 days, positive change could be on the way as early this summer.
“As you say, we think it's incumbent on them to keep being the builder of the, big of the ditch, and then allowing as many parties as possible to provide the service to those companies, and then forcing them to be more competitive.”
Although it seems counterintuitive, governments actually serve a public interest by providing cost-effective access to high speed networks — especially in smaller remote communities. Not only does it help promote business development, but it means that many of these small communities can stay connected as economically viable places for people to live and work.
For instance, Andersen says his Ontario-based company connects businesses in all provinces and territories, including a Starbuck’s in the Yukon.
In that respect, different locales have different service needs that may or may not be served by larger players in the major markets. Even there, the entry of smaller, noble players has forced the big companies to sharpen their pencils and be more responsive to customer needs.
“You know, we all remember the stories 15 years ago about waiting for the cable guy to come, you know, sometime, that week. So it's not just cost, it's also pushing up service standards,” he said.
“People appreciate it when somebody picks the phone and knows them, right?”
In the meantime the group has launched an education campaign at www.breakfreefromthebigthree.ca and raise awareness of the issue.