Network Policy

Telecommunications Regulation (Stage 3, almost Stage 4)

Through a number of policies and regulatory initiatives taken on by the federal government and its regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), competition has managed to gradually make its way to the Canadian telecommunications service market. The process itself began back in 1979 and over the years the pace of liberalization accelerated to include several initiatives. These proposals not only helped to further increase competition in all areas of telecom, but furthermore as a sign of Canada’s commitment to the World Trade Organization (WTO), the monopoly by Telestat Canada was also brought to a close on March 1. 2000. Thus, further opening the market to competition and innovation for years to come. However, it must be noted these initiatives only improved the business environment for the northern parts of Canada. In southern Canada, many of the areas are served by “independent” local telephone companies which have not fully embraced competition and only represent 5% of the total revenue brought in by telecom which was $38 billion in 2003.  However, these companies are in the process of opening their market as well to competition.

ICT Trade Policy (Stage 4)

The nation of Canada has transformed itself into a flourishing Information and Communications Technologies (ICT) Sector through its innovation, people, knowledge and opportunities. A magnet for Global ICT investors, Canada boasts a “who is who” list of companies which have established themselves in Canada. Companies such as IBM, EDS, Cisco, Ericsson, Alcatel, and Motorola have all created a very strong presence due to an environment based on sound economic fundamentals and low taxes for businesses. An environment supported by sustained policy efforts has nurtured innovation and allowed business’s to remain competitive and flourish. Canada has the largest financial surplus of any member of the G-7 countries and has come to provide not only a stable environment, but also one of low-inflation and low-interest rates. Furthermore, taxes in Canada continue to plummet well into 2005, with the average corporate tax rate will be 5% lower than that of the U.S. Research and Development (R&D) has also found a home in Canada with generous tax incentives. Furthermore, with tax-free access to North America under NAFTA along with a highly skilled workforce Canada has become a hot bed of innovation and success for major corporations. Lastly, according to KPMG, Canada also has a 14.5% cost advantage over the U.S., with costs in cities running 10-20% lower than regional U.S. counterparts.