EoW January 2014

Transatlantic cable

Demonstrating a particularly tender concern for telecom subscribers, Mr Harper promised them an end to the “bundling” practice of Canada’s monopolistic cable operators, and to penalties on customers who prefer paper – as distinguished from electronic – billing. The Throne Speech also demanded that roaming costs imposed on cellphone users be reduced, and proposed that cable TV customers be permitted to choose which channels they are willing to pay for. Claiming that the Throne Speech “could easily be read as an anti-business tract,” Mr Olive of the Star wrote that, at the very least, its promises, if acted on, “will upend a comfortable way of doing business for entire industries.” At worst, it will cut into corporate pro ts. While acknowledging that the majority of businesses are not anti-social, Mr Olive invited a consideration of recent events, notably the Great Recession – “caused by singularly self-interested captains of nance” – which cost the jobs of eight million Americans and more than 400,000 Canadians. He also cited “Main Street anger” at the need for taxpayer-funded bailouts of nancial giants – and of a General Motors Corp and a Chrysler Corp – to prevent collapse of the global nancial system. Also still present to people’s minds, he believes, are “the cost-cutting and pro t-seeking” behind such disasters as the Deepwater Horizon oil spill in the Gulf of Mexico in April 2010 and the deadly derailment of a crude-oil carrying freight train at Lac-Mégantic, Quebec, last July. “Seldom have so many business-related tragedies been compressed into such a short time frame,” wrote Mr Olive. But he asserted that the “social contract” between business and communities has been fraying for some time in Canada. He recalled the losses, among others, of the steel companies Alcan, Inco, Falconbridge (including its Noranda unit), Stelco, Dofasco, and Ipsco, as well as the “epic failures” of Nortel Networks and BlackBerry. His perception is that the Canadian Prime Minister has planted his foot against further erosion. For example: † Over the past ve years, Mr Harper has blocked four foreign acquisitions of Canadian companies. Not one o shore takeover had been blocked over the previous 23 years. † Ottawa nixed the sale to a US rm of the aerospace division, with its Canadarm and Radarsat satellite operations, of Macdonald Dettwiler. It also killed proposed foreign takeovers of Potash Corp and the Allstream Division of Manitoba Telecom Services, and quietly dashed the hopes of Beijing-based Lenovo Group Ltd of acquiring all or part of BlackBerry. † Mr Harper has “ring-fenced” the Alberta tar sands against any further sovereign government purchases, thwarting Chinese ambitions for shoring up its energy needs by way of Canada. And China’s Huawei Technologies has been advised not to bother bidding on the next generation of Canadian telecommunications and email systems. † Whether or not Mr Olive reads the Prime Minister’s mind accurately, he is probably correct that there was bound to be a backlash to the “yard sale” of iconic Canadian business assets over the past decade and a half. Like a heat-seeking missile, the wrath of the Canadian electorate has traced the culprits to corporate o ces across the country; and those in high o ce have taken notice. But it is worth noting, Mr Olive observed at this point, that consumer-pleasing moves, and vocal patriotism, do not cost governments a penny. To be anti-business is relatively easy. It is not enough. In conclusion he wrote: “It is not entirely disagreeable to hear the squeals of anguish from certain business quarters over this latest priority shift [in Ottawa]. But the two must be partners, or our capitalist system – the one Churchill said is the least-bad of the systems on o er – does not work.”

As reported by Joan Engebretson, executive editor of Telecompetitor , an AIR.U programme announced in November is the second phase of a structured approach for participants hoping to obtain vacant TV broadcast spectrum, available for unlicensed use. These higher-ed communities have greater than average demand but often, because of their rural or small-town locations, are underserved with broadband. (“AIR.U Quick Start Program Targets White Space Networks,” 14 th November) The technology to support this initiative includes a database that keeps track of where TV channels are vacant, and wireless equipment that automatically con gures itself to use vacant channels based on information from the database. The West Virginia deployment supports speeds of 12 Mbps over distances of at least two miles. But Barry S Toser, of Declaration Networks, told Telecompetitor that, with “expanded base stations,” the technology can support speeds as great as 100 Mbps. He said Declaration Networks expects to use multiple vacant TV channels in its networks. The programme bears a similarity to one that Gig.U – a consortium of 37 major universities and itself a founding member of AIR.U – is using to bring ultra-high-speed bre-based broadband to university communities in non-rural areas of the United States. Gig.U has helped jump-start several such high-speed broadband deployments. † Founding partners of AIR.U, established in June 2012, include Microsoft, Google, and the Open Technology Institute at the New America Foundation, a Washington DC-based think tank. “A great many North Americans are sick and tired of business. Tired of its piratic ways, craven incompetence, and me- rst-and-only approach.” In response to the jaundiced view of a thoroughly disgusted electorate, will governments turn anti-business? With reference to his own government at Ottawa, David Olive, a business and current a airs columnist at the Toronto Star , nds ample proof that they can – and do. (“Why Have Governments Turned on Big Business?”, 15 th November) Mr Olive called attention to the most recent Speech from the Throne, delivered 16 th October and outlining federal priorities for the coming session of the 41 st Canadian Parliament. It was read by the governor general, standing in for Queen Elizabeth II; but, also as per tradition, the text was supplied by the Prime Minister’s o ce. On its evidence, Prime Minister David Harper’s fealty lies, decisively, not with his nation’s companies but with its citizens. From the speech: † “Canadian families work hard to make ends meet, and every dollar counts. While companies will look out for their bottom line, our Government is looking out for everyday Canadians. † “When Canadians make decisions about how to spend their money, they must be assured of a voice, a choice, and fair treatment. † “Although Canadians are among the most digitally connected in the world, we also pay some of the highest wireless rates in the developed world. As families know – especially families with teenagers – the monthly bills add up.” Business A falling away of public trust in companies commands attention at the highest levels of government

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January 2014