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Healthy Competition

Healthy Competition

In the world of free enterprise, healthy competition always bodes well for the consumer or end user. This is definitely the case with Canadian digital infrastructure, which has benefited considerably from the recent spate of developments in the country, much of it geared toward facilitating investment and competition in the telecommunications sector.

 

At this crucial juncture, the impetus is on policy makers and regulators to enable and encourage competition among different telecommunications providers, and to foster an atmosphere conducive to investment growth. This will ensure that consumers have a wider range of quality options, further strengthening the country’s telecoms industry.

 

Continued competition-driven growth is especially important given the sizeable capital investment required for the development of Next Generation Networks (NGNs).  It is also important to note that the telecommunications market is characterized by a high degree of industry concentration, and scale and range of operations is essential. These qualities have given rise to the need for healthy competition that will ensure the delivery of innovative services at more competitive rates.

 

Much of the effort in spurring on competition and private sector investment involves a close coordination of government regulations, focused initiatives, and even influencing market factors. In 2006, a Policy Direction was released in which the Canadian Radio-television and Telecommunications Commission (CRTC) was directed to limit regulation to the minimum degree required to meet the country’s telecommunications goals. In all other cases, the CRTC is required to let market forces prevail.

 

Another step toward encouraging competition that would drive the continued growth of digital infrastructure in the country is the fast tracking of the telephone service’s deregulation. With the goal of providing a clear and open path to investment and providing consumers with more telecommunications options, these and other measures all play a significant role in making Canadian digital infrastructure what it is today.