21September 2023

The Grim Reality: Home Internet Competition in Canada

The Grim Reality:  Home Internet Competition in Canada


In a nation known for its breathtaking landscapes and vibrant cities, Canada has long been grappling with a less picturesque issue – a lack of meaningful competition in the internet service provider (ISP) industry. While the digital age has ushered in unprecedented connectivity, Canadians have been left with limited choices and high prices when it comes to their internet services. The question that looms large is: Is internet competition dead in Canada?



A Market Dominated by Few

One glance at the Canadian ISP landscape reveals a glaring truth; it's dominated by a select few. A handful of major players have established an oligopoly that stifles competition and innovation. The big names in the game: Rogers, Bell, and Telus have effectively locked down the market, leaving minimal room for smaller, competitive ISPs to thrive while offering service below the wholesale rates that undermine competitors such as CanNet.


High Costs, Limited Choices

The consequences of this monopolistic setup are far-reaching. Canadians pay some of the highest prices for home internet services among developed nations. The limited competition means that there's little to no incentive for the major players to lower their prices or invest in technological advancements. Consequently, many Canadians are left with slower speeds and data caps that seem like a relic of the past in today's data-hungry world. Since the independent ISPs have no access to the fiber internet networks owned by the major companies, consumers are stuck paying very high prices for fiber internet only offered by a select few players on the market.


Innovative Startups Squashed

One of the most significant casualties of this lack of competition is the stifling of competitive independent ISP startups. New ISPs with fresh ideas and competitive pricing models struggle to gain a foothold in the market. The significant upfront costs associated with building network infrastructure make it nearly impossible for newcomers to break into the industry. And if they penetrate the market successfully by any chance, it is only a matter of time before they are usurped by one of the predatory big guys.


Regional Disparities Persist

Canada's vast geography presents unique challenges when it comes to internet infrastructure. Rural and remote areas often suffer the most from the lack of competition. While urban centers enjoy relatively better connectivity, many rural communities are left with inadequate options or, worse, none at all. This digital divide exacerbates disparities in access to education, healthcare, and economic opportunities.




The CRTC's Role and Regulatory Challenges

The Canadian Radio-television and Telecommunications Commission (CRTC) is tasked with regulating the country's telecommunications industry and ensuring competition. However, critics argue that the CRTC has not done enough to foster genuine competition. Critics cite regulatory loopholes and policies that have essentially allowed the major ISPs to maintain their dominance. For the sake of preserving competition and the millions of households across the country struggling to make ends meet, the regulator must now avoid half-measures and take strong, decisive actions.

The CRTC needs to mandate access for all competitors including CanNet to all broadband networks owned by major companies such as Bell, Rogers, Telus including the fibre that provides the super-fast speeds consumers are increasingly wanting. This access must be at just and reasonable wholesale rates, unlike those that currently exist and that have driven most competitors out of the market.



Conclusion: A Call for Change

While home internet competition in Canada may seem dead, it's not entirely lifeless. There are signs of a shifting landscape, with glimmers of hope for more accessible, affordable, and innovative internet services. However, significant challenges remain, and it will require a concerted effort from policymakers, regulators, and the public to breathe new life into Canada's internet competition.


The need for change is clear. It's time to break free from the stranglehold of the oligopoly, usher in true competition, and ensure that all Canadians have access to the internet services they need and deserve in the 21st century. Until then, we are still offering one of the best internet deals for people in Canada. Check out our internet page for available plans in your area.

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