Our high-speed Internet is pricey and pokey, global report says.
Hey, we beat Mexico and Poland.
Canada has one of the slowest and most expensive consumer broadband Internet networks in the developed world. That is the conclusion of a new OECD report, widely viewed as the leading global benchmark on broadband networks, which compared Canada with 29 other countries on a range of metrics. These included broadband availability, pricing, speed, and bandwidth caps.
At first glance, the numbers do not seem that bad, with Canada ranking ninth out of 30 countries for broadband penetration. While that represents a sharp decline from years ago when Canada prided itself in standing second worldwide, its current position is unchanged from last year.
Yet the situation becomes far more troubling once the OECD delves deeper into Canadian broadband pricing and speed.
We're global suckers
Canada is relatively expensive by OECD standards, ranking 14th for monthly subscription costs at US$45.65 per month. By comparison, Japanese consumers pay an average of US$30.46 per month and consumers in Britain spend an average of US$30.63. The relatively high prices may help to explain why there are still many Canadians with access to broadband networks that choose not to subscribe.
Not only is the Canadian Internet relatively expensive, it is also comparatively slow, ranking 24th out of the 30 OECD countries. Internet users in Japan, Korea, and France enjoy a genuinely different Internet experience, where the far-faster speeds allows for applications and services that have yet to make their mark in Canada.
Moreover, the speed gap between Canada and most of the OECD appears to be growing. The fastest consumer speeds often come from fibre-to-the-home (FTTH) services that are commonplace in countries like Japan (48 per cent of consumers) and Korea (43 per cent of consumers), but virtually non-existent in Canada. In fact, the OECD placed Canada's FTTH penetration at zero per cent.
When price and speed are combined, Canada sinks toward the very bottom of the OECD rankings. As measured by price per megabyte -- effectively the price for speed -- Canada ranks 28th out of 30 countries, ahead of only Mexico and Poland. This may be the most telling metric, since it confirms that Canadians pay more for less.
Take it or leave it
Canadian consumers also face far less choice with respect to broadband options. Canada was one of only four countries (Australia, New Zealand, and Belgium were the others) where all broadband options included "bit caps" that limit consumer use each month.
Canadian ISPs are quick to claim that they regularly upgrade their networks and the services they provide. For example, Rogers announced new faster speeds for two of its broadband Internet services last week. Although the new speeds were promoted as a free upgrade, the company raised its prices just two months earlier by as much as 10 per cent.
Most Canadians recognize the critical importance of broadband networks for communication, commerce, education, and access to knowledge. Canada was once a global leader, yet today the marketplace suffers from high prices, slow speeds, and throttled services that have led to an unmistakable decline in comparison with peer countries around the world.
Related Tyee stories:
Michael Geist, whose column on digital law and policy appears every Tuesday in The Tyee, holds the Canada Research Chair in Internet and E-commerce Law at the University of Ottawa, Faculty of Law. He can reached at mgeist@uottawa.ca or online at www.michaelgeist.ca.
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seth
4 years ago
corruption
Lotsa competition amongst carriers though. Just ask Harpo. At least to hand out campaign donations and buy CRTC members lunch. Much cheaper to spend money that way than upgrade Canada's steam age network infrastructure.
And if a group of enterprising individuals want to sell cheap access using Wifi and such, why the corrupt CRTC allows the carriers to forbid such nefarious activities using their term of service requirements.
Modern fibre optic technology is now so cheap that BCHydro at almost no additional cost as a part of its smart metering program could give all of BC households one gigabit/sec access. But the BCLiberals need Big Telecom campaign donations so Gordon Campbell would put a quick stop to that nonsense.
South of the border a company called Meraki is providing free broadband access to San Francisco. Meraki's cost if translated to Vancouver is less than one dollar one time per household. But the mayor and city councilor's need Big Telecom campaign donations especially the unrecorded ones between elections, so every albeit poorly written report to Vancouver Council on the subject has been rejected.
Gonna require citizens doing it for themselves. Stay tuned, its about to happen!!!
Booker
4 years ago
Telecom
It's not surprising that Telus (one of Canada's worst corporate citizens, union-busting and shipping BC jobs off to the Philippines)also cares little for its customers. It's all about the bonuses and options for the execs, and providing services that cost money doesn't help the stock price.
Wilfred Laurier
4 years ago
Slow?
My Shaw internet, the base version, downloads at an average of 25mb/s. Three years ago it ran at 5mb/s. The price has not gone up.
Let's look at population density for two of the compared countries. South Korea, for example, has 45,000,000 in a country the size of Vancouver Island. What does that do for your infrastructure costs? Between Tokyo and Osaka there are 100,000,000.
"But the BCLiberals need Big Telecom campaign donations so Gordon Campbell would put a quick stop to that nonsense."
This is patent nonsense. Telecoms are federally regulated and have nothing to do with the provincial government.
Peter Dimitrov
4 years ago
Seth:Co-operatives, economic democracy & broadband
Gonna require citizens doing it for themselves. Stay tuned, its about to happen.Exactly a co-operative should do the trick...just like Mountain Equipment Co-op or Vancity or???....Indeed if you're tired of being ripped by the private uber-capitalists, and if our Accenture owned "BC Hydro" and their Fiberal masters can't see the "green" light on this, and Vision, while thankfully passing Andrea Reimer's "open access" bylaw -still continues to fidget on this issue, well then Seth you are right, citizens, empowered, determined to democratize and build a more inclusive participatory democracy and ECONOMY, must do it themselves. Count me in. I believe in the power of co-ops..Also, in this contracting economy --economic democracy, greater social/public control ..is something the taxpayer ought to get back from the billions of taxpayer funded corporate welfare being handed out...but neither Harpo or Gordo or Jacko or Iggyo or Jane or Carole or the CRTTC get it...Obama seems to get it though..GM ain't getting millions without giving up control on their board to government regulation & oversight. Give me a call Seth, 604 255-1340...I want to talk.
Wilfred Laurier
4 years ago
Excuse me.....
But to me, the above comment, other than being a stock leftist rant, doesn't make any sense.
seth
4 years ago
wilfred after the Tieleman beating
Still smarting from that one I see!!!
The base shaw plan is $30 a month + tax at a speed of 256 kbs.
I thought you said somewhere you were an engineer. Perhaps you need to requalify? Civil maybe?
The highest speed shaw is $102 + tax and claims 25 mbps a second of download speed. Considering you share the channel with hundreds of other subscribers that 25 mbps would be burst mode only. Sustained downloads would be much slower.
The cost of providing Telecom in a city or town is the roughly same in Singapore as it is in Vancouver or Williams lake. The outlying areas could easily be covered at a very low cost with WiMax. Even with their ancient snails pace steam age equipment Canadian Telecoms are making enormous profits on internet.
What do Telecoms being federally regulated have to do with campaign donations? Telecoms can donate to whomever whenever for whatever reason. For example if Telus or Shaw wants to get a rezoning change to put in a new building and a particular council member or MLA stands in the way, why a few dollars to the campaign coffer can't hurt in getting that politician to take another look. Similarly if BCHydro or a municipal utility was to look at opening up its smart metering fibre to the public or if the city planned on adding wifi on its street light poles why a coupla bucks in baksheesh into the premier's or a few councilor's campaign donation piggy bank wouldn't hurt now would it?
Citizens doing it for themselves have a look at www.vonic.ca.
Wilfred Laurier
4 years ago
Correction
"The base shaw plan is $30 a month + tax at a speed of 256 kbs."
This is not the base plan. You are speaking of the "High Speed Lite" plan. The high speed plan is $42.95 per month and it is considered the first step. I find the connection reliable and fast.
Finally, Seth, if you are not happy with the present ISP and telecoms, you can write your MP or to the CRTC since it is their jurisdiction.
shabbaranks
4 years ago
What are we not getting?
"Most Canadians recognize the critical importance of broadband networks for communication, commerce, education, and access to knowledge."
Agreed (although I would prefer the term "information" to "knowledge" - a fallacy of the information age equates information with knowledge - not so - information can be delivered, knowledge takes effort to develop on the part of the receiver), but, what are we losing with higher costs and slower speeds?
Aren't we just slowing down our ability to watch pirated (and not) videos, buy stuff and contribute to the inane online universe? I'll note that a super high-speed internet connection is not required to read information online, contribute to forums such as this one or do most online communication. Faster connections are required for playing video games and passively absorbing media generated by others.
What do we NOT GET by having these slow speeds? Maybe its an indirect benefit because it forces us to live our lives not mediated by a computer screen? Internet can be a negative force in our lives and culture. Maybe these deterrents (similar to deterrents we place on other harmful things) are a benefit?
This article takes the assumption that we should always strive for more, cheaper and faster with technology. Kind of reminds me of the past 150 years of industrial revolution that we criticise so much. This attitude creates waste, obsolescence and a continuing need for more work and time on the part of the user.
G West
4 years ago
shabbaranks Good point
To which I'd only add the important codicil that much of the so-called 'information' is inaccurate, incomplete, biased and spun for commercial or political purposes.
Other than that it's hard to disagree with much of your post.
James Burns
4 years ago
Oligopolies Again
The primary problem with the kind of oligopolistic practices that we see in Canada with respect to broadband access is that they will reduce competitiveness for all business that uses information technology, which these days is everyone. There will be a lack of investment in technologies that improve communications, particularly of homegrown technologies, because the won't exist due to innovation being stifled.
But the hardest hit sector will be those that use broadband the most, and that's companies in the information technology arena. They are the heaviest users, and the lower the costs, the faster the speeds, and basically the better the technology, the better companies, particularly small companies in IT will be able to function. It's not just about costs, it's also about being able to conduct research related to advancing the technology.
We just saw the declared bankruptcy of GM, a company that relied entirely on having a protected and privileged oligopolistic position. In the long run that kind of behavior stifles innovation, raises costs, and creates behemoth corporations that are "too big to fail" and "have" to be bailed out by the public because so much of the economy depends on just that one wasteful slothful extortionist.
Moreover as we've seen these corporations actively work against the public interest, using their position and money to influence politicians by preventing positive public policy like stronger environmental regulations, and encouraging policy that fattens their bottom line, like subsidized highway construction. In the case of broadband providers they stifle wireless innovations, as well as programs for free or cheap public access.
It's terribly shortsighted.
Dan the socialist
4 years ago
My Shaw internet, the base
My Shaw internet, the base version, downloads at an average of 25mb/s. Three years ago it ran at 5mb/s. The price has not gone up.
------------
So they say but I have hi speed and I am lucky to get 1 mb/s, the odd time I do hit 2 mb...but it is usually 0.7 - 0.9 mb/s even though I pay for more .....
dave49
4 years ago
Is cable TV still a bargain?
About ten years ago, a consultant for Audio & Video marketing gear told me after traveling in the USA and finding out about their cable TV rates, he realized what a good deal Canadian consumers get for what they pay.
I wonder how Internet service evolved differently to come to such a pathetic result.
I use a non-Telus DSL supplier and they have been upgrading their network as Telus, who is responsible for the lines, upgrades them.
ME2
4 years ago
"Oligopolies Again" ? What else?
We can slice and dice the bytes 'til we're blue in the face, but in the end the problems wind up just where James Burns puts them :
"Moreover as we've seen these corporations actively work against the public interest, using their position and money to influence politicians by preventing positive public policy......."
Obviously, it is futile to hope that the solutions to the various Net problems - as with all our other Corporation-related ills - will be dealt with through effective regulations.
The prior requirement before that can happen is that the Corporations are knee-capped at the ballot box.
Norman Farrell
4 years ago
Hurrah, we're number 28
Although our ISPs offer slow speeds, they make up for it with high prices.
There is a little more information about how Dr. Geist embarrassed the Conference Board of Canada recently, catching them in the "Cut and Paste Caper."
http://northerninsights.blogspot.com/
morechatter
4 years ago
Helter Skelter
None of this is making any sense as governments projections continue to be out of wack with reality.
And its not only short sightened its wrong as why not help out 20 struggling small business owners rather than just continue to help the big coporations facing bankruptcy. While unemployed workers fight for their jobs as read there is at least a hundred thousand here working on visa and are more than willing to work under the table. While record numbers lose their jobs but increased immgration is at least moving some real estate. As Canada solution to a bubbled economy gone bust is to go for the bubble again. As I'm not buying we will need these immigrants in 6 years, because what we really need to be is investing in Canadians rather than just trying to move real estate to who ever as crime and global warming are adversely affected along with the drain on services such as hydro,education, garbage, police, ambulances, water, etc..... As its said new immigrants are a drain for the first ten years as have access to all that Canadians have built up over the years and many have died for.
http://www.vancouversun.com/Business/warns+that+Ottawa+forecasts/1654601/story.html
And British Columbians can count on a provincial debt that will put many into a state of shock as they compond it with their Fed debt. And if anything its so very disapointing not to see governments invest in their citizens with their tax dollars who want to capture new frontiers like the internet along with other measures that would prove beneficial to the planet and her people.
Stump
4 years ago
Why faster can be better
"Faster connections are required for playing video games and passively absorbing media generated by others.
What do we NOT GET by having these slow speeds?"
Shabbaranks:
I agree with your clarification re: knowledge vs information, but can provide a good reason for higher speeds personally. Since I use Youtube as a means of disseminating videos for professional/marketing purposes and sometimes have to download media files to view, the slow upload/download speeds cost me time/money. Better Internet service is a business advantage for some of us.
Stump
4 years ago
forgot to add
uploading to Blogger etc can be pokey too. More time wasted when I need to be tippy-tap typing.
seth
4 years ago
such a funny man
"if you are not happy with the present ISP and telecoms, you can write your MP or to the CRTC since it is their jurisdiction."
Now that would work for sure!!!
You are forgetting lobbyists, influence peddling, free lunches and campaign donations - all forms of baksheesh.
seth
4 years ago
importance of real broadband
Like the Stump said real broadband brings the ability to reach the masses with television quality messages/programs to everybody. Bypass Canwest global.
It also can allow us to skip travel with super advanced teleconferencing - just like being in the same room. Lets add telecommuting to that and the potential energy savings in broadband become enormous.
It also can allow rural people access to big city jobs and big city people to move back to the country.
It allows third work folk to participate in the information age. For example people in the middle of African now have access to the full course load from MIT.
RickW
4 years ago
Willy ol' buddy
Fact is, Canada has been putting satellites into orbit for 50 years now. We SHOULD have a system of communicastions that allows us access from every Canuck TO every Canuck, and financed the way roads are. And it doesn't matter one whit what the population densities are.
seymour
4 years ago
I would suggest that we get
I would suggest that we get broadband everywhere before we whine about how slow it is. I live in the hinterland (which is most of Canada) and the only highspeed available is by satellite and it is very expensive and is very slow. Telus now has a broadband available, but it is spotty and is only vaguely better than dial-up.
And I when I go visit friends with high speed, it takes my breath away. I would suggest that you are all spoiled rotten. And why do need a lot of bandwidth so that people can play games better. Please.
mikev
4 years ago
internet access
VONIC looks interesting, but FreeTheNet.ca seems to be down at the moment.
I would encourage you to check out BC Wireless Network Society:
http://bcwireless.net/
You could write to your MP and/or the CRTC (good luck with that), or you could make a small investment in hardware and hook up to an organic wireless mesh network, which will eventually replace the need for any other type of connection. Kind of what TCP/IP was invented for, everyone is a node and nodes come and go and the information still flows.
Also, don't get too down on Canada's "steam age" equipment. We have done some interesting things, check out CANARIE:
http://www.canarie.ca/advnet/history.html
http://www.canarie.ca/canet4/
Our telecoms industry are retarded dinosaurs propped up by collaborating politicians while they rape the consumers they claim to serve, much like the entertainment industry, the auto industry, etc etc etc. But they aren't really needed, they only have the power you give them. Try to reform them, or simply replace them (, or rant about revolution to the intarwebs). Spread the word.
VivianLea Doubt
4 years ago
a quote from Stats Canada
" While our societies still struggle to rid themselves of left-over tolerance for homelessness, we are capable of feeling great empathy for people without internet connections - a few short years after its birth." (Digital Divide?)