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Open Internet and Canada

April 21, 2017 | Expert Insights

What is Canada’s stance on Net Neutrality?

Canadian Radio-television and Telecommunications Commission (CRTC) recently ruled in favor of net neutrality which essentially requires all Internet Service Providers (ISPs) to treat their data equally without favoring consumers or web service providers. The hearing came on the 20th of April 2017 after an assessment of Videotron’s Unlimited Music Service which was unfairly promoting third-party music streaming sites with preference for certain consumers.

Speaking in favor of net neutrality, the CEO of CRTC Jean-Pierre Blaise said, “Rather than offering its subscribers selected content at different data usage prices, Internet service providers should be offering more data at lower prices. That way, subscribers can choose for themselves what content they want to consume.”

What is Net Neutrality?

Principles of net neutrality attempt to safeguard the interests of consumers and permit all platforms equality of access, thereby alleviating any surge in data consumption by consumers due to additional ‘differential pricing’ charges as determined by providers.

Telecom Operators were central in allowing all users to connect to others without discrimination unless mandated by law. As Telecom Operators are the largest providers of Internet connectivity, they are bound by the non-discrimination principle used in regular telephonic communications.

Proponents of the ‘Open Internet’ push forward the principles of net neutrality as it ensures smaller enterprises and start-ups are not placed at an egregious disadvantage.

Moreover, telecom providers are divided on their stance. Bell Canada (BCE) maintains that differential pricing for services will provide users with more options and cheaper telecommunications services. Rogers Inc. has supported the ruling as “consumers should be given the choice.” Many believe that the current framework should go further and allow for unlimited data at lower prices.

What are the challenges to Net Neutrality?

Companies such as Facebook, through Facebook Free Basics, advocated for differential pricing which would charge individuals for access to websites alongside their regular periodic internet access payments. Large web service providers can alter traffic to their own content as they have the financial capabilities to do so. Start-ups and small scale enterprises are nearly thrown out of the competition as they cannot afford to spend more on processing.

Sovereign states might alter the internet in their favor, to serve their national security interests.

Assessment

As companies like Comcast increase their lobbying efforts through Public Action Committees (PACs), donating up to $1.9million, they have the financial power to alter Washington’s stance in favor of their cause. However, larger players like Google, supporting worldwide net neutrality, can counter any such lobby groups. Information can be restricted which might lead to the alteration of data for political or economic gains. Recruitment operations and the spread of jihadi propaganda pose a grave threat. However, these aspects are a corollary to censorship which is against the principles of an Open Internet.