Blue Mountain International
When I first moved to Canada, the entire experience was quite taxing, both physically and emotionally. From professional and socio-economic assessments to interaction with customs, I navigated my way through a long process, ready for the grind of a new start. But just as the customs officer broke character, and gave a faint smile saying ‘Welcome to Canada’, this experience completely changed. I immediately felt at ease with the simplicity of things to help me get going and my initial experience has been extremely positive, especially when it came to dealing with people. Whether it was interacting with Service Canada, opening a bank account, using public transport, figuring out long term accommodation, I could get going on my own in a matter of days. Big-box retail, hockey merchandise, unpredictable weather, poutine, etc. were some of the new things I initially discovered. From there on, I slowly started blending in with the multi-cultural community here in GTA.
Now while it’s been great overall, few changes were a bit overwhelming initially. In my first few days, I was trying to convert all of my expenses into Indian Rupees, comparing prices of everyday spends. I got over that habit quickly and focused only on my basic needs – food, shelter, safety, and communication. Food prices were quite manageable, but the expenses that surprised me a bit were the other three:
The rental market globally follows the basic principles of demand and supply. Big cities like Vancouver and Toronto are service sector hotspots creating a lot of jobs. This results in a huge influx of people, increasing the demand for housing. According to research (talking to people), 5 years ago one could get an apartment/condo in downtown Toronto for approximately $1200. This now has increased to $2000-$2400 in 2019-20, and will only go up as more immigrants and young Canadians come here in search of employment opportunities. To balance out this influx, the Government can develop new cities to promote sectors with long term sustainable growth opportunities. Renewable energy and technology services are perhaps the best bet for this as they would support the current and future industries.
The macro-economic benefits of a strong insurance sector are investments and infrastructure development which drives the economy. The flipside of this, however, is that most developed economies have higher insurance costs. But the cost of insurance in Canada still comes as a surprise to many. For example, monthly vehicle insurance costs around $345 in Canada compared to $172 in the US, $67 in Australia, $73 in the UK, and $75 in China. Surprisingly enough,despite the high insurance cost, Canadian Auto Insurance companies have a high loss ratio. This is because of payouts that range from 65%-80% of their revenue from premiums owing to higher repair costs of newer vehicles and high injury claims. The Government can and probably should intervene here, regulating the upper limits of claims to reduce the liability burden on both individuals and insurance companies.
The Canadian Telecom industry, more notably the #BigThree, has been in the news for some time now. It’s not for their extensive network spread, high-speed connectivity or new technology but for their high service charges, a narrative they would love to change. To tackle this, the Government wants to put a price control mechanism in place, asking for an outright reduction in Telecom pricing and increasing competition through MVNOs. This, however, is not a logical solution as both options will result in a reduction of margins and shareholder value and eventually lead to net job loss. We already have this learning from the Asian markets where fierce competition led to a drop in Telecom pricing, eroding operating margins. We’re dealing with a unique situation here; a simplistic solution,
therefore, is not going to be ideal. The way forward has to create a win-win situation in the long run for all stakeholders, customers as well as Telecom Operators.A logical solution will require a strategic shift internally from the Operators rather than any external policy measure. So the question is, how? Stay tuned for the next chapter where we look at ways to make internet great again, for all of us.