Posted November 08, 2019 09:50:57The Canadian telecoms industry is suffering from the same issues as the rest of the country, said the Canadian Association of Telecommunications Commissioners.
With the cost of telecoms infrastructure ballooning, the Canadian Radio-television and Telecommunications Commission said last week that its members have been hit with the highest rate of payouts to companies in the country since the advent of the telecommunications boom.
“What we’re seeing is that these are the same companies that are getting the largest payouts and we’re also seeing some of the largest increases,” said Brian Gorman, a telecoms economist at CIBC World Markets.
The CMTC said in a statement that it’s looking into the matter and expects a decision on whether to make a further statement in the coming days.
A spokeswoman for BCE Inc., Canada’s largest telecoms operator, declined to comment.
The CMTSC, which is also the regulator of the CRTC, said that it is examining how the wireless industry fares.
Meanwhile, it said that Canadian wireless carriers are getting “bigger payouts” than any other major industry in the United States and Canada.
Canadian telcos pay out nearly a third of the overall payouts, the CMTSCs said, citing a report by the Canadian Taxpayers Federation.
In addition, Canadian telcos have increased the proportion of their net revenue from telecoms to telecommunications from 20.5 per cent in 2016 to 21.5 in 2017.
It said the rate of increase is not surprising because of the “favorable exchange rates” between Canada and the United Kingdom.
Its report says that Canadian telco revenues increased 8.6 per cent from 2017 to 2018, compared to a 10.4 per cent increase in the UK.
Some companies are getting bigger payouts than others, said Mike Fergus, executive director of the Canada Research Chair in International Telecommunications.
“You can have companies with a great track record, a solid business record, they’re very competitive, and they have the ability to pay more than others,” he said.
He said some telcos are also getting “substantial” payouts from the government.