Why You Should Care About Net Neutrality
By: Darren Chu
Let's suppose you want to start a small e-commerce business. What you're selling is up to you, it could be anything from fashion to technology, or even utility services.
Now suppose that Internet Service Providers (ISP) decide that your business is in direct competition with their partners or even their own product offerings. Naturally, your business is not good for their business, so they slow traffic to or even redirect traffic away from your site. Would that be fair to all the hard work you've put into building your business and your brand? Of course not!
Thanks to net neutrality, you don’t have to worry about this happening in Canada.
It is estimated that in March this year, Canadian retailers totalled $2.2 billion in online sales, which is a $1.3 billion increase from the same month four years ago. This explosive growth in online shopping is a market no retailer wants to be excluded from because some ISP arbitrarily decided to make your site harder to access online.
According to the Canadian Radio-television and Telecommunications Commission (CRTC), net neutrality is defined as "the concept that all traffic on the Internet should be given equal treatment by Internet providers with little to no manipulation, interference, prioritization, discrimination or preference given."
The Telecommunications Act, which governs ISPs, was first enacted in 1993, a full 10 years before the term "net neutrality" was coined, but initially used technology-neutral language that allowed the CRTC to protect net neutrality through its interpretation of the provisions. Net neutrality officially became enshrined in the Telecommunications Act in 2018 when a House of Commons standing committee examined and recommended the protection of net neutrality in Canada, in agreement with a private member's motion (M-168).
Concerns about net neutrality had existed for many years but came to the forefront of people's minds not long ago. In 2017, the U.S. Federal Communications Commission (FCC) passed a proposal to revoke net neutrality protections, thereby giving American ISPs more freedom to control their networks as they see fit.
While the FCC's decision has no impact on Canadian ISPs, it does impact cross-border digital traffic, which could negatively impact online retail services. In short, Canadian retailers trying to reach American consumers might find themselves at the mercy of a non-neutral network.
Timothy Wu, a professor at the University of Columbia, who first coined the term "net neutrality" had this to say about Canadian communications being blocked by American companies:
"The phone and cable companies in the United States have been empowered - it is quite shocking - to block anything they want to. It's frankly a censorial power. If there is a Canadian site that is criticizing the excessive imperial attitudes of the United States, they can just block it so that no Americans can see it."
The CRTC supports net neutrality and believes that when there is Internet traffic congestion, ISPs should invest in better network capacity and infrastructure instead of resorting to what is known as Internet Traffic Management Practices (ITMP). ITMPs are a necessary part of Internet management and have many uses, such as prioritizing traffic at peak times to first responders during natural disasters. Although these practices are legal and allowed by the CRTC, ISPs must be transparent about them or face review.
Which brings us back to our original question, why should you care about net neutrality? The short answer is that free and equal Internet promotes innovation and the exchange of ideas. Canada already has some of the strongest net neutrality laws globally, and ensuring those laws remain means Canadians will continue to enjoy online freedoms not seen in countries like China, where censorship rules.
In 2018, our parent company, Utility Network & Partners Inc. (UTILITYnet), decided to build an Internet service company and expand its utility offerings to encompass electricity, natural gas, and Internet. The birth of Q Wave and introduction of even more consumer choice in Western Canada’s Internet market has been two years in the making.
In a previous blog, we explored our relationship with UTILITYnet and how the local utility providers we partner with in Alberta help consumers save money each month. Each of our Community Partners has a unique story to tell about why they entered the utility business, and each one is proof that small local businesses can compete head to head with the large incumbents that once dominated the market.
The introduction of small, local businesses to the utility market not only lowers prices, and creates jobs, but gives birth to a number of customer-centric programs, such as the ability to bundle electricity, natural gas, and Internet. Overall, consumers benefit.
As mentioned above, we are lucky to live and work in a country that values free and equal Internet. But, it is not only the issue of net neutrality that threatens consumer choice. Ensuring that the rules that garner the market actually encourage competition also plays a significant role. In fact, a battle to ensure this is the case is currently occurring in Canada. Stay tuned for our next blog, which will dive deeper into this topic.
Now suppose that Internet Service Providers (ISP) decide that your business is in direct competition with their partners or even their own product offerings. Naturally, your business is not good for their business, so they slow traffic to or even redirect traffic away from your site. Would that be fair to all the hard work you've put into building your business and your brand? Of course not!
Thanks to net neutrality, you don’t have to worry about this happening in Canada.
It is estimated that in March this year, Canadian retailers totalled $2.2 billion in online sales, which is a $1.3 billion increase from the same month four years ago. This explosive growth in online shopping is a market no retailer wants to be excluded from because some ISP arbitrarily decided to make your site harder to access online.
According to the Canadian Radio-television and Telecommunications Commission (CRTC), net neutrality is defined as "the concept that all traffic on the Internet should be given equal treatment by Internet providers with little to no manipulation, interference, prioritization, discrimination or preference given."
The Telecommunications Act, which governs ISPs, was first enacted in 1993, a full 10 years before the term "net neutrality" was coined, but initially used technology-neutral language that allowed the CRTC to protect net neutrality through its interpretation of the provisions. Net neutrality officially became enshrined in the Telecommunications Act in 2018 when a House of Commons standing committee examined and recommended the protection of net neutrality in Canada, in agreement with a private member's motion (M-168).
Concerns about net neutrality had existed for many years but came to the forefront of people's minds not long ago. In 2017, the U.S. Federal Communications Commission (FCC) passed a proposal to revoke net neutrality protections, thereby giving American ISPs more freedom to control their networks as they see fit.
While the FCC's decision has no impact on Canadian ISPs, it does impact cross-border digital traffic, which could negatively impact online retail services. In short, Canadian retailers trying to reach American consumers might find themselves at the mercy of a non-neutral network.
Timothy Wu, a professor at the University of Columbia, who first coined the term "net neutrality" had this to say about Canadian communications being blocked by American companies:
"The phone and cable companies in the United States have been empowered - it is quite shocking - to block anything they want to. It's frankly a censorial power. If there is a Canadian site that is criticizing the excessive imperial attitudes of the United States, they can just block it so that no Americans can see it."
The CRTC supports net neutrality and believes that when there is Internet traffic congestion, ISPs should invest in better network capacity and infrastructure instead of resorting to what is known as Internet Traffic Management Practices (ITMP). ITMPs are a necessary part of Internet management and have many uses, such as prioritizing traffic at peak times to first responders during natural disasters. Although these practices are legal and allowed by the CRTC, ISPs must be transparent about them or face review.
Which brings us back to our original question, why should you care about net neutrality? The short answer is that free and equal Internet promotes innovation and the exchange of ideas. Canada already has some of the strongest net neutrality laws globally, and ensuring those laws remain means Canadians will continue to enjoy online freedoms not seen in countries like China, where censorship rules.
Protecting Consumer Choice
A key benefit to net neutrality is consumer choice, which is an issue at the core of our company. Q Wave was founded on ensuring consumers in Alberta and Canada have a choice when it comes to who provides them with their Internet services.In 2018, our parent company, Utility Network & Partners Inc. (UTILITYnet), decided to build an Internet service company and expand its utility offerings to encompass electricity, natural gas, and Internet. The birth of Q Wave and introduction of even more consumer choice in Western Canada’s Internet market has been two years in the making.
In a previous blog, we explored our relationship with UTILITYnet and how the local utility providers we partner with in Alberta help consumers save money each month. Each of our Community Partners has a unique story to tell about why they entered the utility business, and each one is proof that small local businesses can compete head to head with the large incumbents that once dominated the market.
The introduction of small, local businesses to the utility market not only lowers prices, and creates jobs, but gives birth to a number of customer-centric programs, such as the ability to bundle electricity, natural gas, and Internet. Overall, consumers benefit.
As mentioned above, we are lucky to live and work in a country that values free and equal Internet. But, it is not only the issue of net neutrality that threatens consumer choice. Ensuring that the rules that garner the market actually encourage competition also plays a significant role. In fact, a battle to ensure this is the case is currently occurring in Canada. Stay tuned for our next blog, which will dive deeper into this topic.