Canada Mirrors U.S. Broadband Policies, Gets Same Crappy Results - How's that 'free market' telecom utopia working out for you, eh?How's that 'free market' telecom utopia working out for you, eh? 02:05PM Friday Jun 05 2009 by Karl Bode tags: coverage · business · Politics · world · Bell Sympatico · TekSavvy Solutions Inc. Despite similar geographical challenges, Canada has fared a little bit better than the US in terms of broadband penetration. But the Canadian government has recently started mirroring the US regulatory approach to broadband. Namely, employing weak-kneed, well lobbied regulators -- many of whom used to work for the carriers they're supposed to regulate. Such a regulatory model does a fine job -- ignoring the plight of small independent ISPs, giving incumbent carriers everything they ask for, and ignoring pesky consumer concerns completely. So it's not too surprising to see that Canada's broadband fortunes are now flailing as a result (via Stop The Cap). As in the States, such regulators, who struggle to get things right even when not under corporate influence, have made a cushy environment for monopoly and duopoly carriers, resulting in less competition. That in turn allows carriers to employ low usage caps with high overage fees, cherry pick both last-gen and next-gen upgrades, and raise prices whenever they feel like it. That's before you even get to Bell Canada's unchecked anti-competitive efforts to crush small Canadian ISPs. The result? OECD broadband data indicates that Canada is sliding when it comes to global broadband rankings. Canada now ranks 27th out of 30 countries in terms of price per megabyte -- ahead of just Mexico and Poland. They also rank as thoroughly mediocre in terms of average connection speed at 7Mbps. OECD analyst Taylor Reynolds also tells the CBC that the shift toward low caps and high overages could hurt the country in a number of ways: According to the report, download caps could hold a country's businesses back by limiting their online development. "This may become an economic disadvantage in countries with relatively low bit caps, particularly as more high-bandwidth applications appear," the report said. Canada's one of eighteen countries who have yet to begin deploying fiber to the home, while independent Canadian ISPs worry about going out of business, and Canadian consumers get lower quality product at ever-increasing prices. The United States has done some brilliant things over the country's young lifespan that may be worth emulating -- but our broadband policies of the last decade probably shouldn't be one of them.
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