WHILE SPECTRUM AND rural broadband were two of the major themes to emerge from the federal government’s digital economy consultation, there were a number of others worth highlighting, such as the emergence of mobile banking, slow ICT uptake by the small business community and education and training in the digital economy.
In many countries, including Canada, wireless users can use their mobile device to make payments, but according to Visa Canada new rules contained in the Voluntary Code of Conduct for the Credit and Debit Industry in Canada, will actually stymie future growth of mobile payments.
The company writes that based on information from the Department of Finance, multiple payment applications aren’t allowed to exist on the same device. “The practical effect of this is that a consumer who has Visa Debit, Visa Credit and Interac payment applications would have to carry three cell phones if they wanted to initiate all of these types of payments using a mobile phone. This impractical result severely limits the usefulness and practicality of mobile payments technology, and stunts the many new uses and benefits of chip technology,” says Visa Canada.
The Information and Communications Technology Council (ICTC), a federal not-for-profit sector council focus on human resource related issues, tells the government that it can’t forget about skills, education and training when developing a national digital economy strategy.
“In an age of Internet banking, software-based cars, virtual coffee clubs and even the potential for online voting, Canadians without digital skills of the most basic kind risk being left behind,” writes the ICTC. “This threatens not only Canada’s productivity but the participatory nature of our democratic system.”
The way forward, suggests the sector council, is to include digital education as part of the essential skills framework and develop and implement a world-class digital literacy program. “Doing this would allow for targeted approaches to skills development aimed at everyone in the workforce, from the casual user of technology to the highly qualified people that design and implement technology for others to use,” the ICTC says.
The Council of Canadian Academies notes that the “right” skills are a necessary requirement for growing the ICT industry. To make sure the university education system is placing enough emphasis on giving students ICT skills the council recommends regular evaluation of curricula.
“Education and industry officials should together, and on a regular basis, assess current curricula to ensure that Canadian university and college training in ICT disciplines is both relevant to industry’s evolving needs and on a par with world standards,” the council writes.
With small business representing more than 80% of Canadian businesses (some say it’s as high as 99%), this group of enterprises is the driver of the Canadian economy. Yet to a large degree they are laggards when it comes to ICT adoption. If these companies are going to continue to play such a large role in the digital economy, they will have to make greater use of ICTs.
North Eastern Ontario Communications Network (NEOnet) says the government needs to encourage innovation and adoption of ICT across all industries and to spur greater use of ICT in small and medium businesses, “clear incentives to invest” will need to be created.
“Only after a SME hears from peers and is convinced that a new technology can help with productivity and business development, will they consider making an investment in ICT. To remain at the cutting edge of industry ICT investment is necessary, the vicious cycle therefore continues,” NEOnet writes.
Many submissions pointed to the need for government to create the right tax environment to encourage greater adoption of ICTs among small businesses. Chief among those tax policies to enhance the capital cost allowance program by upping its limit.
