Cable / Telecom News

Let market decide telecom development, says online survey


OTTAWA – Looking to push the adoption of advanced telecom technologies in this country, the Canadian Advanced Technology Alliance said this week that the market should decide how telecommunications develops in Canada.

Providing better tax credits and becoming a model user of ICT were recommended steps that government could take to encourage industry growth, according to respondents.

"The survey is part of a six-month advocacy campaign by CATA to encourage the adoption of advanced telecommunications and information technologies," said John Reid, president, CATAAlliance, in a press release.

The survey was undertaken as an open online poll of the general membership of CATAAlliance, and is not intended to represent the consolidated views of the telecommunications industry in Canada. CATA did not release figures such as the number of respondents or regional breakdown, etc.

Highlights of the survey has been submitted to the Telecom Policy Review Consultation Forum which happened in Ottawa this week.

On the importance of communications as a key infrastructure tool for business, an overwhelming majority of respondents felt that there is a direct connection between ICT investment and improved productivity.

Regarding the financing of new infrastructure, the private sector did not feel that a continuing government presence in the rollout of broadband posed a threat to investments. Respondents specifically advised the government to focus more on investment in the ‘last mile’ of service delivery, to avoid duplicating existing networks, and to partner with the private sector where the economics did not justify stand-alone private sector investments.

Broadband penetration is still considered an issue by respondents, who were in clear agreement that the solution would involve the inclusion of broadband rollout in federal infrastructure projects such as road and bridge construction. Tax subsidy mechanisms were also strongly supported.

The vast majority of those providing open recommendations advised the government to modernize the regulatory regimen to provide less regulation; many even called for a completely deregulated environment that would allow for greater competition and more consumer choice. The abolition of the CRTC was often suggested, in favour of a ‘competition bureau’ approach.

Looking ahead five years, the respondents were confident of the following trends:
* An increase in the speed and capacity of broadband services
* Higher penetration of wireless services
* The continuing growth of Voice over Internet Protocol (VoIP)
* Greater convergence between cable and telecommunications companies’ products and services.

CATAAlliance is Canada’s largest advanced technology association, linking more than 22,000 executives in the high-tech sector. CATAAlliance includes many divisions with interests in the telecommunications sector, including the Canadian Association of Internet Providers (CAIP).

www.cata.ca