Marc Garneau just made an
encouraging post
about freeing telecom markets in Canada. Here’s the comment I left
for him:
Hi Marc,
I whoteheartedly agree that free human action in markets is the best
thing for our ailing telecommunications sector. CRTC can declare
regulation mandating “fair” contracts all day, but in the end
government regulation is can only hamper innovation and be wielded as
a tool by monopolistic incumbents to prevent competition. No matter
how well-meaning, large-scope government control restricts
individuals’ ability to solve problems and provides a juicy target for
those who want to capture value rather than create it (like our
incumbent telecom carriers).
Tony Clement’s decision to override (as Industry Minister) the CRTC
and permit the mostly foreign-funded WIND/Globalive Wireless (and
DAVE/Moblicity, as well) to purchase spectrum access in Canada at
auction has already given us a taste of what competition in freer
markets can do. Of course, specific access granted to one company is
still not a great example of a free market, but it was still a step in
the right direction. WIND is awesome: it has simpler contract
agreements, simpler amortized-over-contract phone financing, excellent
data plans, and decent customer service. As a younger carrier, it has
less overland penetration, but that will steadily improve as they earn
enough profit to justify expanding their network.
It is worth noting that the CEP union is lobbying against freeing of
telecom markets (alongside Bell, Rogers, and Telus), as political
special interest group that stands to continue benefiting from
government control of the telecom industry. Watch out for these guys
and their misleadingly named “Own it!” campaign.
PS. However, I would like to make one remark about your other comment
stating support for government regulation of broadcaster ownership in
order to attain Canadian content production for cultural
objectives”. I suggest that it is more effective for individual
Canadians to decide which sort of content they value (and gaining
access to their valued content grows ever easier, entirely thanks to
technological improvements that markets deliver). Lots of us value
home-grown Canadian talent and content, but we shouldn’t impose our
choices on other Canadians.
Cheers!