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March 10th, 2010The counter argument on foreign ownership

Like the new anthem, is it all a sideshow distracting us from a real Made-in-Canada Digital Strategy?

Posted by Editor in competition

Over on the Tyee.ca Steve Anderson makes a few good points:

In last week’s speech from the throne and release of the budget, the government had an opportunity to address digital issues. All that was made clear, however, was that government is committed to opening Canada’s telecommunications and satellite industries to foreign ownership. Giving up on our capacity to meet this challenge and instead relying primarily on foreign investment schemes is not the answer. Such an approach would, at best, miss the lessons learned from the countries that are leading in broadband speed, access and cost.

Link: Why Are Tories Giving up on Canadian Innovation?

[ see also: Canada Needs a Serious Agenda for Media Innovation ]

In markets like the UK, foreign-ownership of carriers has been consistent with a high level of industry competitiveness and mobile innovation. However elsewhere like New Zealand the case is not as clear.

In the wired world, the models that work for driving advanced broadband typically have involved significant investment at the national or municipal level, effectively fibre to the curb as a fundamental public-good infrastructure service like gas, water, or roads with private ISPs servicing and marketing the last “mile” to households. Of course wireless couldn’t be more different. Tower-sharing and in-territory roaming requirements are a step in the right direction of reducing total infrastructure costs. However, instead of otherwise lowering barriers to entry the government seems to set up spectrum auctions as a way to take billions out of ICT investment rather than put it in.

  • Igor

    Where exactly are his good points?
    There is no justification as to why allowing foreign ownership is bad. There's just some nebulous mention that we need a “made in Canada” solution, and we need to bridge the digital divide (which has nothing to do with the issue).

  • http://wirelessnorth.ca WirelessNorth

    Touche. As it happens, we here like the idea of foreign investment. But we'd agree with the poster that the job doesn't end there. To us that was the good point.

    Canada does need a digital strategy, just as we need to set our goals high for what that strategy should aim for, as well as better metrics to tell us if our current or future policy frameworks are getting us there.

    Because some people ask, a more optimal digital strategy could include both greater public investment as well as a net reduction in regulation.

    We might argue that the this government has done a relatively better job with the digital file than the liberals before them. Certainly the wireless markets has seen huge competitive changes in the last 3 years. But still, compared to what's possible (and what's at risk), the job is not yet done.

  • Tbarnston

    Who cares about the digital divide? Ensuring every hamlet in Nunavut has a strong wireless connection should not be the priority of our governments. Let the free market run this one, let Google role out fibre networks in Van, Mont, T.O.
    If we reinvest in our progressive social policy by resurrecting national housing strategy and investing in universal daycare, the smart people of this world will continue to flock to Canada's progressive cities in droves to do business. Leave the internet infrastructure to the corporations.

  • Tbarnston

    Who cares about the digital divide? Ensuring every hamlet in Nunavut has a strong wireless connection should not be the priority of our governments. Let the free market run this one, let Google role out fibre networks in Van, Mont, T.O.
    If we reinvest in our progressive social policy by resurrecting national housing strategy and investing in universal daycare, the smart people of this world will continue to flock to Canada's progressive cities in droves to do business. Leave the internet infrastructure to the corporations.

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