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Copper theft has been growing. The telecom industry wants tougher penalties

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The Canadian telecommunications industry wants stiffer penalties for copper wire thieves, who they say are repeatedly causing outages that can leave thousands of customers without service when they cut the wire off telephone poles to sell for scrap metal.

The number of incidents grew by about 200 per cent annually from 2021 to 2023, according to estimates from the Canadian Telecommunications Association. It says the service interruptions can become a matter of public safety when customers can’t use their phones to call 911.

“It’s not a victimless crime,” said Eric Smith, senior vice-president of the Canadian Telecommunications Association.

Copper wire is typically used in traditional telephone and DSL internet lines, but thieves have been known to remove everything off a utility pole, including fibre-optic cables.

“It’s a bit of a life safety issue [for thieves] as well,” said Brian Lakey, vice-president of the Telus Reliability Centre of Excellence and co-chair of the Canadian Telecom Network Resiliency Working Group.

“They cut everything, so they may cut through copper, they may cut through fibre, they may cut through power lines, and if they cut through power lines, they may get electrocuted.”

A problem everywhere

Outside of the industry, it can be hard to get national numbers about copper theft. The RCMP doesn’t track this crime specifically, but according to the latest available data from Statistics Canada, metal theft (which includes copper wire, along with other things like manhole covers) grew 56 per cent between 2018 and 2022.

It’s not just a problem in Canada. Last month, a bridge in Los Angeles went completely dark after people stripped it of wiring, and copper theft has become a major source of damages and delays for Europe’s railway operators.

The growing concern around copper wire theft has coincided with a steep climb in the price of the commodity, which reached $11,000 US a ton this spring.

Copper is used in low-carbon technologies like electric cars and generators. It’s become increasingly sought-after as countries seek to lower carbon emissions, though supply hasn’t been enough to meet demand.

“For those reasons, copper has been at very high historical levels,” said Bart Melek, global head of commodity strategy with TD Securities. He said there’s recently been a decline in prices, but the commodity’s long-term outlook is strong.

Stopping theft

Perspectives vary on the best way to crack down on copper theft.

Right now, thieves in Canada can face up to 10 years in prison if the value of the material they steal or disrupt is more than $5,000.

Smith said “most people” who steal copper end up getting charged with theft under $5,000, which he doesn’t believe is enough of a deterrent.

“We’re asking for stiffer penalties,” said Smith.

Cut copper wiring
Concern about copper theft has grown in recent years amid rising prices for the commodity. (Robert Short/CBC)
A proposed anti-foreign meddling bill would carry a new sabotage offence that would target copper wire thieves, though only if they’re stealing with the intention of endangering the safety and security of Canada or its allies.

There are other ideas, too. Bell has tried taking its fight against copper theft to the civil system, launching lawsuits against alleged thieves.

Some provinces, such as Alberta and B.C., have brought in their own legislation to crack down on copper theft, requiring sellers to use government ID in order to sell at scrap metal yards.

Dov Dimant, owner of Vancouver’s Capital Salvage, thinks that requirement has likely helped a bit, though it isn’t foolproof.

“Generally, thieves aren’t going to have current ID, so by insisting that everyone has ID, that eliminates a lot of people that can’t get their act in order,” said Dimant.

He’s less sure if ramping up penalties will make much of a difference. Dimant said the reason people risk their safety to rip out copper wire is that they’re desperate, and he thinks they either wouldn’t care about the risk of greater punishment or would simply move on to stealing something else.

“Attacking the theft issue of metal is kind of a Band-Aid solution to a larger problem,” said Dimant.

“The deeper problems, in my opinion, are drug addiction and mental health … so until we start combatting the roots of the problem, people are going to be stealing it.”

 

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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