For many Canadian communities on the fringes or further from this country’s largest urban centres, including many in Manitoba, broadband internet access remains an elusive goal.
The Manitoba Chambers of Commerce, which represents 71 local chambers of commerce in the province, has long advocated the need for improved service in rural areas if we are to grow local economies.
Sure, there are government programs to subsidize network upgrades in some areas where there’s no broadband or inadequate service to connect to the increasingly digital world. But there are many smaller cities and towns that don’t qualify for these taxpayer subsidies.
For most communities, often the only way to ensure residents can access decent (let alone super-fast) broadband is to rely on investment by Canada’s largest telecom and cable companies — those with the ability, willingness and scale to build new communications networks.
Flin Flon is a case in point. A northern Manitoba city of 5,000 residents some 700 kilometres from Winnipeg, Flin Flon is the kind of small Canadian community that can be difficult to serve with modern communications services. Yet Bell MTS just announced an investment in the city’s infrastructure with all-fibre connections enabling Gigabit internet access.
Deploying new network technology in Flin Flon is representative of what can be accomplished by large private-sector network companies with the incentive to invest. Unfortunately for many other smaller communities across Canada, Flin Flon may soon also be an exception.
In August 2019, the Canadian Radio-television and Telecommunications Commission (CRTC) issued a decision that puts investment by Canada’s leading communications companies in smaller communities and rural areas in real jeopardy.
That CRTC decision, which facilities-based carriers big and small — including Bell, Rogers, Eastlink and Cogeco — are asking the federal cabinet to overturn, gives internet resellers — companies that don’t build new networks but instead resell services over other companies’ networks — a massive discount on the wholesale prices they pay.
It’s significant money — an estimated $325 million right up front to start — that could otherwise go to capital investments in new broadband infrastructure.
While it doesn’t look like the CRTC decision will impact Flin Flon — one assumes planning was well enough advanced — other communities are unlikely to be so lucky. Canada’s major cable and telecom operators have either confirmed they’re reducing network investment or indicated they’re reviewing their plans to expand to rural and remote areas.
Bell, which just a year ago announced it was boosting its plans for wireless internet in rural areas from 800,000 households to 1.2 million, said it was forced to reduce that target by 200,000 in the wake of the CRTC decision.
Two hundred thousand fewer households with access to high-speed internet is many times the number of homes and businesses in Flin Flon and other much smaller Manitoba communities combined.
The CRTC’s national broadband speed targets are 50 megabits per second (Mbps) for downloads and 10 Mbps up for uploads. While 99 per cent of Canadians in larger cities have access to those speeds or faster, six out of every 10 rural homes do not.
Taxpayer subsidies may help close some of that gap. Supporting a short-sighted regulatory decision that transfers capital from companies willing and able to invest in building networks in smaller communities to those that won’t will only make it worse.
Better broadband for all Canadians, including those in smaller towns and rural communities, is achievable. But only if the government encourages private-sector investment wherever and whenever possible — recognizing that the companies that can and will deliver better broadband are not the same as those the CRTC supported in its wholesale rate decision last August.
There’s no doubt Flin Flon residents welcome the better connections that are rolling out in their community. But it’s also clear that many Canadians in rural areas in Manitoba and across the country are going to continue feeling left behind if the federal cabinet allows a CRTC to maintain a decision that puts the brakes on private sector broadband investment.
Chuck Davidson is president and CEO of the Manitoba Chambers of Commerce.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
