Canadian Internet Service Provider Agreement For More Affordable Internet: Will It Help Raise It To The U.S. Standard?

18, April, 2022
By: Ikenna Uwakwe

The Canadian government has announced the launching of the second phase of the Connecting Families initiative, an affordable high-speed Internet of $20 a month in order to help connect hundreds of thousands of low-income families and seniors in Canada. 

The Honourable Gudie Hutchings, Honourable Kamal Khera, The Minister of Innovation, Science and Industry, the Minister of Seniors, and a few others announced on the 4th of April 2022. This is in a joint effort with 14 partaking ISPs across Canada as volunteers contributing to the initiative, offering $20 a month high-speed Internet services, the Government of Canada will assist in connecting thousands of low-income families and seniors to affordable high-speed Internet, basically for those who need it most. ISPs taking a part in Connecting Families have availed significant levels of contributions as it they have brought to the table millions of dollars in support to assist bridge the digital gap for low-income Canadians.  In accordance with Canada's Networking strategy, which expects to make available for all Canadians access to high-speed internet services of no less than 50 megabits per second (Mbps) download and 10 Mbps upload. Connecting Families 2.0 presents significant and improved internet speeds and increased data usage at a discounted rate and no equipment or installation fees will be applied.

Furthermore, the existing $10 Internet plan offering under Connecting Families 1.0 also remains available. For $20 every month, Internet speeds will be about five to multiple times faster than it was in the past. More so, the data allotment is increasing twofold, from 100 GB to 200 GB of usage each month. Eligible families will get a letter from the Government of Canada which will contain an entrance code that is required to sign up for Connecting Families via a secure online portal. The entrance code will be valid for the total duration of the initiative, given that the family continues to be eligible; nonetheless, access to the discounted Internet offering will rely upon availability.

This development will likewise increase eligibility from families getting the maximum Canada Child Benefit (CCB) to incorporate seniors getting the maximum Guaranteed Income Supplement (GIS). TELUS, Bell Canada, CCAP, Hay Communications, Access Communications, Mornington, Novus, SaskTel, Cogeco, Shaw, Tbaytel, Videotron, and Westman Interchanges are all taking part in the Connection of Families. 

The launch also progresses on several other steps the Government of Canada has taken for the betterment of telecom services for its citizens. The historic ENCQOR 5G partnership for next-generation technology, the Connect to Innovate program, the $2.75 billion Universal Broadband Fund, and others. The government is focused on ensuring that at least 98% of Canadians do have access to high-speed Internet by 2026, and then 100% by 2030. Moreover, The Canadian government aims to rebuild the economy as the after effects of the pandemic linger on, and also continue to help build strong communities and a more competitive and resilient Canada for everyone.

THE CANADIAN GOVERNMENT CABINET MEMBER'S COMMENTS CONCERNING THE INITIATIVE

“Being connected is important to maintain professional, social, economic, and cultural networks within the digital economy. However, many low-income Canadians are still facing barriers that prevent their full participation in the economy. By working closely with Internet service providers across the country, we are increasing accessibility and providing all Canadians with affordable and reliable Internet.”

“Seniors depend on the Internet to stay in touch with loved ones and access vital services. Providing low-income seniors with affordable access to high-speed Internet service will make a tremendous difference in their everyday lives. We’re grateful to lead Internet service providers for their partnership in making the Internet more accessible to all Canadians.”

“Being connected to the Internet in this day and age is no longer a luxury. Simply put, it’s a necessity. That’s why this initiative is so important: it’s helping Canadians get connected to high-speed Internet for $20 a month. This will not only help families and seniors stay connected to their loved ones but also allow for so much more, like access to online learning and health care services, which has been especially challenging in rural communities. Our government will continue to support initiatives like this for the betterment of rural Canada.”

HOW CANADA'S INTERNET SPEED AND AFFORDABILITY LOOKS IN THE GLOBAL PICTURE

The Canadian telecom providers offers one of the top tier and most affordable telecom services on the globe, ranking third out of 100 countries in internet affordability. Likewise, Canada was also ranked in 2021 as first in the G7 for affordable wireless services by global accounting firm PwC. However, these studies are again and again overlooked while placing more consideration on one-dimensional and inaccurate studies which coveys wrong data about the country's telecom prices and affordability. These include the Finnish consultancy, Rewheel's studies; the Cable.co.uk's fixed broadband price study, and price comparison reports

The Cable.co.uk study concentrates on the median of surveyed broadband plans to improve its nation's rankings. Utilizing this median price guarantees that broadband expenses in Canada are 27% higher than in the U.S. However, the real dataset utilized by Cable.co.uk recounts an alternate story. Between the Canadian and U.S. broadband plans calculated by Cable.co.uk, it appeared that Canada was offering the least expensive. By zeroing in on the median plan, independent of which plans purchasers chose, Cable.co.uk spreads the misleading notion that Canadians are billed more for broadband service. The controversial Cable.co.uk studies is made completely clear when its 2020 report is contrasted with its discoveries in 2019. For 2020, Cable.co.uk concluded that the average fixed broadband cost per month in Canada was $76.14 (U.S.) while the average cost monthly in 2019 was $34.86. Obviously, costs for fixed broadband internet in Canada didn't increase by any more than twofold in one year. As a matter of fact, in its pricing study, the public authority of Canada saw that throughout the last five years, Canadian broadband costs have moved downwards" and was lower than the U.S.

Furthermore, The fact that the three federal government agencies in charge of cautiously observing the telecommunications industry have all started that wireless costs in Canada are dropping rapidly isn't as reported as should be. As indicated by the CRTC, the average cost of wireless plans declined by 37% somewhere in the range between 2016 and 2019. Statistics Canada's Cellular service price index has declined 23% since January 2019, as opposed to its All-item Consumer Price index, which shows that the expense of all goods and services increased. At long last ISED's quarterly price monitoring has observed that most wireless plans that were studied have dropped somewhere in the range of 10 and 18 percent, in contrast with the benchmark costs gathered in 2020. 

Indeed, even as costs declines and usage takes off, Canada's telecom network operators keep on investing billions year in year out into growing Canada's digital infrastructure with the goal of ensuring that Canada keeps up with its worldwide leadership in its quality of service by conveying cutting edge innovations. Moreover, as a result of these investments, Canada's telecom industry contributes over $74 billion in Gross domestic product and has created over 630,000 job opportunities across the country. 

Furthermore, Canada's internet affordability ranks only 32nd, while the U.S. comes in 21st out of 110 countries globally. And in terms of actual numbers, the cheapest broadband internet package in Canada can be purchased for 1 hour 43 minutes worth of work, while in the U.S. this number stands at 15 minutes less. And since 2020, The overall internet affordability in Canada has decreased by a total of 82%, mostly as a result of a fall in broadband affordability. All things considered, the mobile internet affordability is similar in both countries, although it is comparatively poor as Canadians have to work up to 3 minutes for 1GB of mobile data (42nd in the world), while Americans work 4 seconds less (41st). Overall, Canada's internet quality in the study was determined by its speed, stability, and improvement.