So it looks like usage-based billing (aka UBB) is going to be removed from the scene – now that the Conservative government has decided the CRTC’s decision to approve UBB was a mistake.

Now what?

The nut of it is UBB is just a symptom of larger problems within Canada’s $4.5-billion broadband market, which has been allowed to operate with little regulatory oversight. This has created the following landscape:

- An oligopolistic market dominated by the cable and telephone companies. In other words, there’s no or little competition in all markets.
- Prices that rank among the highest in the world
- Access that while improving are far from world-class.
- Service providers that can do and charge what they want.

Addressing the UBB problem is like putting a finger in a leak in the dyke. It will solve one issue but it’s just a stop-gap solution to a bigger problem. In a spirited e-mail I received from Liberal leader Michael Ignatieff, he suggested that; “We must build a digital strategy for Canada that embraces the energy, entrepreneurial spirit, and innovative creativity of consumers, businesses and digital influencers like you.”

Putting aside the political posturing, Ignatieff makes a great point: Canada desperately needs a digital strategy, which is a different approach from the hands-off approach the federal government has taken for the past decade.

This does not suggest the federal government take a pro-active approach to the Internet but Canada needs a new master plan that recognizes the Internet has gone from an interesting new medium to an essential part of Canada’s economic, innovation, cultural and content future.

It’s no longer good enough to let market forces rule the day because what you get is self-interest ruling the day even if that means an Internet landscape with no structure or long-term vision. We need more competition so innovation and competition thrives. Ministry of Industry Tony Clement has raised the “more competitive” issue himself but let’s see if he’s willing to walk the walk.

If the UBB issue has done anything positive, it’s finally put broadband into the spotlight. For far too long, Canadian consumers have just paid the piper; now there’s a window to take a good, hard look at an industry that has had its own way for too long.

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