Over the past few weeks, both the National Post and Reuters have reported that the Liberals plan to include lower Internet and wireless costs as part of the fall election campaign. The reports indicate that reforms could include price caps or a firm commitment to facilitating the entry of new competitors in the form of mobile virtual network operators (MVNOs). I’ve posted regularly on Canada’s high wireless prices and efforts to address the issue (here, here, here, here, and here), which remain uncompetitive relative to many other countries (some of the reasons why are discussed in this LawBytes podcast episode with Antonios Drossos of Rewheel Research).
Post Tagged with: "isp tax"
The Cultural Lobby Demands for Internet Taxes and Fees: The Forgotten Piece in Canada’s Lower Wireless and Internet Cost Puzzle
A potential Netflix tax may garner the lion share of media attention, but the more harmful tax proposal comes from those advocating for a tax on Internet service providers that would have a real impact on all Internet use (earlier posts in the series include digital sales tax and Netflix tax). As far back as 1998, the CRTC conducted hearings on “new media” in which groups argued that the dial-up Internet was little different than conventional broadcasting and should be regulated and taxed as such. In other words, groups have been arguing for new Internet taxes since before Google, Facebook, or Netflix.
For the past two years, the prospect of creating a Netflix tax or Internet tax has been the digital policy issue that would not die in Canada. The Standing Committee on Canadian Heritage called for an Internet tax last June, the province of Quebec remains anxious to pay digital sales taxes (there is nothing stopping them from doing so now), and many creator groups continue to the call for mandated contributions on Netflix to “level the playing the field” (the level playing field argument is misleading). The uncertainty surrounding Netflix and ISP taxes has not been helped by the reopening of the issue at the CRTC after the release of the government’s digital Cancon strategy and Canadian Heritage Minister Melanie Joly’s occasionally leaving the door open to the possibility.
After months of public consultation and debate, Canadian Heritage Minister Mélanie Joly will unveil the government’s plan for Canadian content in a digital world this week. Joly launched the digital Cancon consultation in the spring of 2016 by emphasizing that all policy options were on the table, but the choices have narrowed considerably in recent months.
My Globe and Mail op-ed notes that a potential Netflix tax was a non-starter due to a 2015 election campaign commitment, Prime Minister Justin Trudeau eliminated the possibility of an Internet tax in June, and the government has steadfastly (and rightly) defended net neutrality, meaning there will be no mandated prioritization of Canadian content on the Internet.
The Canadian chapter of the International Institute of Communications held their annual conference in Ottawa this week, headlined on Thursday by back-to-back appearances from Canadian Heritage Minister Melanie Joly (in a question and answer session with Jennifer Ditchburn) and Innovation, Science and Economic Development Minister Navdeep Bains.
Both ministers spoke primarily about their key policy initiative, namely digital cancon (Joly) and innovation (Bains). Joly’s cancon discussion again emphasized the benefits of exports and foreign investment, but she also indicated that all policies are still on the table, including an ISP tax and efforts to bring Internet companies such as Netflix “into the system.” Joly was followed by Bains, who used his speech to sketch out the foundation of his forthcoming innovation strategy. His focus included universal, affordable Internet access and telecom competition (which raises real doubts about whether the government will approve Bell’s proposed purchase of MTS).