The first two posts of this series on Bill C-11 focused on the risks to user content and Canadian creators. This post picks up on the implications of the bill for consumer costs and choice. In short, at a time when political parties are focused on affordability and inflation, the Bill C-11 effect is likely to increase consumer costs and decrease choice. There is no magic solution that results in hundreds of millions of new money entering the system without someone paying for it. It is fairly clear that that someone will be Canadian consumers as streaming services either hike Canadian fees to account for their new costs or shun the market altogether. It should be noted that it doesn’t need to be that way: a bill that establishes thresholds to exclude smaller services would limit the negative effects on competition and a sufficiently flexible approach to Canadian contributions would recognize that the large streaming services already invest billions in Canada.
Post Tagged with: "affordability"
The Bill C-11 Hearings Are Back, Part Three: The Risks of Higher Consumer Costs, Less Competition, and Little New Money for Film Production
The Liberal party released its election platform yesterday and perhaps everything you need to know can be gleaned from the fact that Canadian Heritage Minister Steven Guilbeault posted multiple tweets about plans for new cultural spending initiatives and Internet regulations in French without a single English language tweet. This is surely not a coincidence since the government’s digital policies have long been designed to curry favour in Quebec, even at risk of angering voters in the rest of Canada. Based on decision to forge ahead with Internet regulations with enormous implications for freedom of expression, alienating voters in the rest of Canada that have raised concerns with policies such as Bill C-10 is not a worry for the Liberal government.
Neither, it would seem, is the affordability of Internet and wireless services, which do not receive a single mention or direct policy measure. In doing so, the party has seemingly abandoned wireless competitiveness as an issue and unequivocally sided with the big telecom companies despite presiding over some of the world’s most expensive wireless services. The party platform is titled “Forward for Everyone” but not everyone moves forward in quite the same way with big telecom companies moving further ahead than Canadian consumers.
Bains’ Other Wireless Affordability Problem: The Broadcast Panel Plan for WhatsApp, Skype and Other Internet Services to Pay Canadian Broadband Taxes
Navdeep Bains, the Minister of Innovation, Science and Industry today promoted the government’s plans for wireless affordability. The effort was largely an attempt to reiterate its wireless affordability platform, which targeted a 25 per cent reduction in consumer wireless bills by emphasizing more competition through MVNOs and spectrum set-asides. The renewed emphasis on the policy comes as an updated Wall Report finds that prices have been declining in some baskets (the long-overdue emergence of unlimited-ish plans a key factor), but not in the core middle tier of plans where prices remain high. The government states “Canadians have been paying more overall compared to consumers in other G7 countries and Australia” and noted that the government will track pricing on a quarterly basis starting from January 2020. Coming on the heels of threats from incumbent telecom companies such as Telus, it was good for the government to re-assert its policy objectives for the sector.