2019 Canadian ISP Summit – Day 3

Fireside Chat with Konrad Von Finkenstein and Anja Karadeglija Photo Credit ; Canadian ISP Summit twitter feed

The main focus for the final day of the ISP Summit was regulatory. Former CRTC Chair Konrad Von Finckenstein held a fireside chat with Anja Karadeglija of the Wire Report. That was followed by a regulatory panel with Chris Tacit, Michael Geist and Laura Tribe moderated by Christine Dobby from the Globe & Mail.

Many hot issues were covered including MVNO’s, insights from KVF as to how decisions are made at the CRTC and the need for speed and certainty, the difficulty in establishing costing and the retroactive compensation to the competitive industry for overcharging by the incumbents that is being challenged in court. There were good questions from George Burger and Matt Stein to the former Chair challenging his viewpoint on making the decision retroactive for 3 years considering how long it took to make the decision.

Chris Tacit got a laugh from the audience when he mentioned the history of the incumbents tactics in fighting decisions that they don’t like back to Decision 92-12, when the CRTC opened up long distance market to competition. Some panelists and audience members may not have remembered 92-12, actually they might not even have been born yet. Of course that is when I was at ACC Long Distance as VP, Network so I lived and worked through those long distance wars and remember them well. And yes, Bell and the telcos were anti-competitive then and they still are now.

The panel also expounded on what the new minority Federal government might be able to accomplish in its mandate, as well as gave predictions on ministers such as Navdeep Bains and whether he would stay on at ISED or be given a different portfolio (consensus seems to be that he would get a new file) and that Minister Rodriguez might stay on Heritage.

Personally, I feel that a minority government can usually only accomplish a few items in its mandate. There are other , bigger files that will need attention right away such as Alberta and the pipeline issue. There may not be enough time or political capital to get much done on telecom or tech issues.

Once again the Canadian ISP Summit proved to be a great, action packed three days. The content was excellent, the networking was tremendous and it was great to see old friends and make some new ones.

2019 Canadian ISP Summit – Day 2

Photo credit to Maryna Ivus

The Dawn of a New Era in Canadian Telecom ? Maybe

Day 2 at the ISP Summit featured CNOC President and CEO of Distributel Matt Stein releasing a survey that reveals that Canadians are frustrated and feel dissatisfied and trapped by the Large Telcos. Consumers highlighted a lack of fairness, affordability and choice .

The following is an overview of select survey findings:

  • While almost all Canadians have Internet in their home, the majority are customers of the big telecommunications companies: Nearly all (97%) of Canadians have Internet service in their home. Almost eight-in-ten (79%) are customers of one of the big telecommunications providers, while only 3% are customers of smaller independent companies.
  • Canadians feel trapped by their current provider, with over half in Atlantic Canada feeling trapped: 40% would like to change companies but feel trapped by their current Internet service provider. Just over half (53%) of Atlantic Canadians are more likely to say they would like to change Internet providers but feel trapped.
  • Customers of the large telecommunications firms feel they have limited choice when it comes to changing companies: 65% of Canadians who have home Internet from a large telecom company feel there is no point in changing telecommunications companies as they are all pretty much the same.
  • Lack of competition has led Canadians to falsely believe there are no alternatives to the big telecommunications firms: Nearly half (45%) believe there are no alternatives to the large Internet service providers.
  • An anti-consumer environment has been nurtured and is thriving across Canada: Almost half (49%) of Canadians feel that it is too difficult to change Internet service providers.
  • Canadians are frustrated they are paying some of the highest prices in the world for home Internet: Nearly all (90%) Canadians who have home Internet are frustrated they are paying much higher Internet fees than consumers in other countries. Rural Canadians (96%) are significantly more likely to be frustrated with paying more than other countries compared to urban and suburban residents.
  • Customers of the large telecommunications firms have experienced price increases over the last 24 months – almost half without notification: Just over two-thirds (67%) of Canadians who have home Internet from a large telecom company say their Internet service provider has increased the price of their home Internet in the past 24 months. Among those who saw a price increase, 41% say the price increased without any notification.
  • Despite recent price increases, Canadians are experiencing an unacceptably low increase in value: Only 12% of Canadians with home Internet say they are getting more value in their products and services after a price increase. While still low, urban Canadians (16%) are more likely to say they got better service after a price increase, compared to suburban Canadians (8%) and rural Canadians (10%).

“Canadians have clearly voiced their concern about the status quo created by the large telecommunications firms,” said Stein. “The limits they have deliberately placed on consumer choice, fairness, affordability and competition have led to unacceptable levels of dissatisfaction. And when 40 percent of their customers say they want to change companies but feel trapped by their current provider, that’s a clear sign that the status quo is not serving Canadians.”

You can read more about it here

2019 Canadian ISP Summit – Day 1

I was looking forward to this event for months and Day 1 did not disappoint. Met up with many friends and customers within the first few minutes of arriving on Monday. And made new friends and contacts throughout the day . Thanks to TekSavvy for sponsoring my “office” at the show.

The keynotes on innovation and disruption in our Internet industry were very interesting. The talk about women in tech by Maryna Ivus of ICTC was very eye opening. She outlined StatCan numbers that show the number of women working in telecom fell from 35% in 1999 to 25% in 2019. Those numbers surprised and disappointed me as someone who has been in telecom all my adult life.

There was ample networking at this sold-out event; a cocktail reception sponsored by TorIX and QIX, a superb dinner at the CRAFT Beer Market by MBSI WAV and Cambium Networks and an after party by ADTRAN that I was smart enough to not attend . There are times I have to acknowledge my own limits ! Thank you to all the sponsors for making this event so special.

Day 2 has a full agenda with keynotes and panels on both the business of ISP’s and technical discussions. I will blog the highlights tomorrow after the Gala Dinner.

2019 Canadian ISP Summit

The Registration Desk for the 2108 Canadian ISP Summit

Monday, November 4th is the start of the 2019 Canadian ISP Summit to be held at the Toronto Mariott Downtown Eaton Centre Hotel. Designed for Internet Service Providers (large and small) from across the country, the Canadian ISP Summit is a conference that allows attendees to learn, grow and network.

It is put on by CNOC, The Canadian Network Operators Consortium Inc. There are three days filled with keynotes, panels, general sessions and lightening talks. There will be technical sessions, business related sessions and always some superb regulatory discussions. There are plenty of opportunities to network before and after sessions, during coffee breaks and meals as well as cocktail receptions and fabulous dinners.

Caught holding court at the TekSavvy booth, networking during the 2018 Summit

This show is one of my favourites. I have attended three of the last four ISP Summits and will be attending again this year. It gives me an opportunity to focus on the data side of AurorA’s business. International telecommunications is more than just voice termination; AurorA also provides international data services such as MPLS, Cloud Connectivity, SD-WAN and even Tier 1 Internet. The Amitel side has partnerships that can help ISP’s with merchant service and payment processing, billing systems, colocation at 151 Front Street and even business process outsourcing. The Summit energizes me, educates me and introduces me to industry people from all across Canada.

Once again we’ll be blogging from the conference. My goal is to post a summary each night of some of the more significant talks, discussion and events of the Summit that I feel would be relevant to you, my readers, specifically from an international telecom perspective.

Hopefully, I will see you live at the Canadian ISP Summit. If not, then check in here in November for my updates from #ISPSummit. If there is something specific you would like me to cover then leave a comment below or reach out to me on Twitter (@TimoVainionpaa)

Election Day

Today is finally the day of the 43rd Canadian Federal General Election. I am sure we are all exhausted from the campaign to date. This post is not about “who to vote for” nor an exhortation to go out and do your civic duty. Rather it is a short summary of some topics specifically related to telecom and technology in general in Canada that are really important to our future prosperity that I don’t think were discussed much in the platforms and debates.

Innovation
Canada’s future prosperity depends on innovation. The Council of Canadian Innovators say Canada’s “productivity is lagging and our future economic prosperity is at risk”. Entrepreneurs that create start-ups and grow scale-ups need an environment that encourages them to grow and scale here in Canada and allow them to compete globally. They need skilled talent (engineers, and also designers, marketers, sales professionals and executives), growth capital and access to markets and customers.

Canada produces a lot of world class talent in our universities and colleges and we need better incentives to keep them here as opposed to going to the USA for higher wages and more attractive opportunities. We need a mindset shift towards the entrepreneurs that are shouldering great risk to build innovative companies in Canada with tax measures supporting innovation, venture funding, employee stock options etc. Plus we need a Federal government that can attract attention to our innovative companies here, even to the extent of procuring products and services from them .

5G and Huawei
The next generation network is being built right now, globally and here in Canada. 5G is transformative, not just a faster network, but also providing lower latency and opening up a host of new use cases especially to power the Internet of Things (IoT). Autonomous connected cars are just one example. We are going to see all sorts of devices connected to our networks, direct machine to machine communications, that will demand security levels beyond what we currently have.

There is an ongoing debate worldwide, prompted by our Five Eyes national security partners Australia, the United States, the United Kingdom and New Zealand over whether equipment from Huawei, a technology vendor from Communist China, should be allowed access to our networks. The Huawei debate is also part of a larger debate about Canada’s relationship with China, a country that does not have the same norms and values as Canada. This was not addressed at all during the election campaign, yet it is vital to our future.

Connectivity (Rural , Remote and Financial)
Access to the Internet is not a luxury, it is a necessity in the modern economy. We need to ensure that all citizens have reliable access to high speed broadband Internet. There is an urban/rural divide for sure, but this issue extends well beyond that. We need connectivity for rural areas; as an example, much of modern agriculture relies on internet technology now. We need connectivity in our remote areas such as the Arctic as well as Northern Ontario , Northern Quebec, Labrador. Of course so that people living there can participate in the modern economy but also as an extension of our sovereignty. With the changes in sea ice happening in the Northwest Passage we should also be looking into laying undersea fiber cables through the passage to provide another route connecting Europe to Asia. Finally, connectivity also means affordability . There are people in urban areas who are not online because they cant afford it. This digital gap also needs to be further addressed, especially for school age children who need the Internet for their school work.

I will be staying up late tonight watching the election returns as I am a political junky. Even though these issues were not front and centre in the run-up to todays election, I hope they will be addressed in our next Parliament as our future really does depend upon it.

Global Internet Phenomena

Sandvine produces the Global Internet Phenomena Report

It seems that each year that I went to the Canadian Telecom Summit, one of the highlights was Dave Caputo, the former CEO of Sandvine, giving a presentation with pearls of wisdom from their Global Internet Phenomena Report. That annual report was also then quoted in many other presentations as the authoritative source for what was happening on broadband networks around the world.

For example, back in 2012, Sandvine focussed on Social Networking and reported that Facebook was one of the top 4 applications on the Web and that over 50% of mobile devices communicated with Facebook each hour !

The 2019 Global Internet Phenomena Report was just released by Sandvine on Sept 10. Sandvine, a Waterloo company (forgive me some local cheerleading) has unparalleled visibility into the Internet industry with an installed base of over 2.5 billion subscribers worldwide across over 160 Tier 1 and Tier 2 fixed, mobile, WiFi and satellite operators. (note that China and India are not included in this data set)

So what is changing in how the world uses the Internet ? A lot !

Video is obviously king, but in ways that keep changing and evolving. Netflix led the way with streaming but now we are seeing more and more competitive streaming services; Amazon Prime, Hulu, YouTube and new ones coming from Disney, Apple, CBS and others. The big traditional cable and telco companies have been fighting back, trying to stop cord cutting with their own streaming offerings and video on demand.

How many different services will a consumer buy to replace their cable ? What do they do if the content they want is not on the services they are buying ? Well, the answer may be in this report as Sandvine is seeing a resurgence in BitTorrent traffic. The release of the final season of Game of Thrones on HBO , or the blockbuster movie Avengers:Endgame could be seen in the increase in BitTorrent traffic.

The big players in Web 2.0, the ones whose shares currently dominate the global stock markets are the FAANG ; Facebook, Apple, Amazon, Netflix and Google. Would it really be a surprise to find out that they also dominate the traffic on the Internet ?

Some other highlights from this edition of the report include:

  • Video is over 60% of the total downstream volume of traffic on the internet.
  • Netflix is 12.60% of the total downstream volume of traffic across the entire internet
  • Google is 12% of overall internet traffic, driven by YouTube, search, and the Android ecosystem.
  • Gaming traffic and gaming-related bandwidth consumption is increasing as gaming downloads, Twitch streaming, and eSports go mainstream.
  • BitTorrent is over 27% of total upstream volume of traffic
  • Facebook applications make up over 15% of the total internet traffic in APAC.

The report includes spotlights on the traffic share leaders for video, social networking, messaging, audio streaming, and gaming.

If you are interested, you can get a download of the report here