Telecom on the radar

MP Marc Garneau released a policy statement on telecommunications this morning.

Unfortunately, it is hard to see changes coming, based on the information released so far.

It was somewhat disappointing to see flawed analysis of Canadian wireless prices in the OpEd:

According to the CRTC’s latest report, Canadian wireless revenues, measured as the monthly average revenue per user (ARPU), are the highest in the G7. At $55 per month per mobile subscriber, Canadians pay 20 per cent more than users in the US, 70 per cent times more than users in France, and 100 per cent more than users in the UK and Germany.

ARPU is not a measure of prices. I spend more each month at Costco than I do at Canadian Tire; does that information indicate which has the lowest prices?

Mr. Garneau wants to further liberalize foreign ownership restrictions on telecom carriers, but continue to retain restrictions on broadcasters:

I would maintain restrictions on foreign ownership in broadcasting because of cultural and content implications to ensure continued production and broadcast of Canadian shows and content for television, film and new media.

Why would production funding and Canadian content requirements apply differently to a TV or radio station that happens to have shareholders outside the country?

More importantly, exactly which telecom carriers would benefit from further liberalizing foreign ownership, if we still restrict ownership under the Broadcast Act, given that virtually all telecom companies are licensed under the Broadcast Act as well? At a minimum, it might help to shift the broadcast distribution licensing regime under the Telecom Act. This would allow the cable and IPTV operations of carriers to be foreign owned without “risking” foreign control of our airwaves.

The good news is that telecommunications policy and the digital economy have made it onto the radar screens of Liberal party leadership candidates, as I wrote last week. We will watch for more details as the campaign continues.

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