Proposed regulations in the U.S. over net neutrality could still influence business up north despite the fact Canadian regulators have been more progressive than their American counterparts, according to one Vancouver-based expert.
The U.S. Federal Communications Commission voted May 15 to move forward with a proposal allowing Internet service providers (ISP) to charge content providers like Netflix or YouTube a premium for better service.
Ron Cenfetelli, a professor specializing in net neutrality at the University of B.C.'s Sauder School of Business, said the driving force behind the issue is profit.
“The CRTC (Canadian Radio-television Telecommunications Commission) has been more liberal than the FCC,” he said, adding that may not stop Canadian companies from making a push for similar regulations if they see the possibility of generating additional profit.
Net neutrality refers to the principal of treating all Internet traffic equally.
Without net neutrality, ISPs could create a two-tiered payment system and charge customers different rates depending on the content they consume. Likewise, content providers like YouTube may have to pay fees to ISPs to offer high-quality video to customers.
Cenfetelli added competition and innovation could be greatly stifled if regulations similar to the ones proposed in the U.S. were implemented in Canada.
“You may find yourself paying fees or discriminatory fees that favour an established company and therefore you may not be able to get your startup off the ground.”
