MONTREAL, Feb. 3 /CNW Telbec/ - Usage-based billing for Internet
services is one of the adverse effects of protectionism in
telecommunications in Canada, says the Centre for Productivity and Prosperity at HEC Montreal.
The Canadian Radio-television and Telecommunications Commission (CRTC)'s
decision to allow usage-based billing for Internet services encourages
the Centre for Productivity and Prosperity to question the functioning
of the telecommunications industry.
According to Robert Gagné, Director of the Centre and co-author of the
study "Openness to Foreign Direct Investment and Productivity in Canada," Canada is among the most restrictive countries in the OECD towards
inward foreign direct investments (FDI) in telecommunications.
"Among 23 countries in the OECD, nearly half went from being totally
closed to being nearly free from any restrictions on FDI in the
telecommunications sector. However, Canada ranks second among the most
restraining countries in this industry, behind Japan," says Gagné in
Previous studies found that investment in telecommunications
infrastructure have a significant and positive impact on economic
growth in the OECD countries. For the director of the Centre, inward
FDI improve competition and spur local enterprises to review the
quality of their services and their pricing policies. "Usually,
consumers pay the bill of protectionism measures, but do they benefit
from a better service?"
According to the study, eliminating the current barriers to foreign
investments in this sector would allow the country's real GDP per
working age person to increase by 1.7% over a ten-year period.
SOURCE HEC MONTREAL
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