Today the head of Canada's Competition Bureau, Sheridan Scott, said that the time for addressing the topic of internet regulation is now. "The developments raise the urgency of a question that public policy has been tip-toeing around for a decade or more, but which we now have to confront head-on: should the government regulate the Internet?"

Ms. Scott professed her own weariness about about government intervention, worrying that it would add costs and administrative complexities for companies and stated that she would put her confidence in the market. But she also pointed to Industry Canada's ongoing auction of wireless spectrum as a model for policy makers who wish to engage in market intervention. She noted that Industry Canada had clear objectives for setting aside a portion of the spectrum for newcomers: greater competition, more innovation, better services and more choice.

The current broadband climate is ripe for a similar intervention--the competition for broadband and cellphone service providers in Canada is not robust. Industry Canada recognized that measures were needed to level the playing field in the cellphone market, and acted by reserving 40% of the spectrum for bidding newcomers only.

But in the context of internet provision, the situation is complicated by the fact that Canadian consumers care just as much about competition in the area of content provision as they do for how much they will pay the ISP for access to it.

Leaving the carriers to control the pipes, throttling as they see fit, will prohibit that competition from realizing the very market forces Ms. Scott has trumpeted today.

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