Companies that provide internet services should be treated, and regulated, like utilities.
As a self-proclaimed capitalist, my stance on this is somewhat surprising, but it makes perfect sense given the Canadian environment.
The internet is no longer optional for most Canadian households.
We use it for work, for school, for entertainment... it is, for all intents and purposes, a utility.
Providers of other utilities (like electricity, gas, and water) can't arbitrarily raise their rates whenever they want.
That's because most Canadian households NEED these things to function, but they don't (often by design) have many options when it comes to suppliers.
So the government restricts the number of suppliers, but it also restricts those suppliers' ability to take advantage of consumers.
Now think about your internet provider.
My internet provider (Rogers Communications) included a little notice on page three of my most recent statement to let me know my bill would be increasing by $7 a month (plus taxes) on April 1st.
That's an extra $84 a year ($94.92 when you include HST) in exchange for... nothing.
My internet service didn't get any faster.
I'm already on an unlimited plan, so I'm not getting more data.
I'm simply paying significantly more for the same service.
"David, that's outrageous! You should move to another provider!"
Sure, but who?
We have so few providers in Canada, and many of the alternative providers that exist don't service every area, so some customers are left at the mercy of the industry's oligopoly.
(Did anybody think about this when the decision was made to approve Rogers' purchase of Shaw Communications, further limiting our options? Apparently, they did not. Or if they did, they did not think hard enough.)
But I NEED my internet to earn a living!
Which brings me back to my original point.
It's time the government started treating internet companies like utilities, creating and enforcing strong regulations that protect consumers from arbitrary price increases.
Either that or break up Canada's telecom oligopoly and allow market forces to decide who wins and who loses: let the US telecom companies enter the market and compete for our business, ultimately driving down costs for Canadians.
Canadian internet providers can be protected by the government (but be mandated to treat Canadians fairly) or be able to increase prices whenever they want but be forced to earn their business from Canadian consumers in a free and open market.
But it's time they stopped being able to have their cake and eat it too.
Canadians deserve better.
Comments