Chapter 1: The Second Impression
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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 this experience completely changed when the customs officer broke character and gave a faint smile saying..
‘Welcome to Canada’
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,
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:
Rental
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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.
Insurance
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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.
Communications
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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 need to create a win-win situation for both customers as well as Telecom Operators
We’re dealing with a unique situation here; a
simplistic solution, therefore, is not going to be ideal. A more effective way
to do this will be 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.
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