CRTC's Approval on Usage-based Internet Billing
'Net metering' or 'Usage-based billing' — thanks to the Canadian Radio-Television & Telecommunications Commission, we've now given our large internet service providers carte blanche in charging per byte our internet consumption, alongside our basic access charges.
Here's a rundown of the decision, how it'll affect your billing, and what you can do about it.
Mind the 'Hogwash'
'By reaffirming its decision to allow “usage-based billing” on Tuesday, the federal telecom regulator has fuelled another round of criticism from citizens’ groups and small telecom providers, which say the federal regulator is killing innovation and allowing large Internet service providers, such as BCE Inc., to raise rates and reduce download limits without any competitive threat – all at the expense of the consumer.'
Large Internet service providers claim that online TV has increased our internet traffic. In fact, it's been estimated that North America's internet traffic between 2009 and 2015 would increase at a rate of 34% per year. That projected increase drives up the number of gigabytes sent over the internet, and thus, forces our largest providers to adopt usage-based billing and bandwidth caps:
'That damn bandwidth hog next door downloading endless porn, shooter games and episodes of NCIS -- why not tag him with an extra bill for clogging the pipes? After all, the telecoms can't be expected to lose money on the guy who comes to the all-you-can-eat buffet and scarfs down all the fried chicken, right?'
— Tyee
The reality of the situation however, is that our Telcos have been steadily investing in 'new, superfast fibre-option networks' as a means of aggressively pushing into 'the last monopoly', cable:
The technology [that Telus and Bell] are rolling out, known as IPTV (for Internet-protocol technology), is aimed squarely at capitalizing on the next big trend in home entertainment. The power of the Internet is coming to the nation’s living rooms, and as it does, it will reshape the fight for the household's biggest monthly entertainment bill.
— CTV
How will this change my bill?
The CRTC's approval of UBB also affects smaller internet service providers (ISPs), especially those that connect to Canada's top Telcos. Even though the CRTC gave them a 15% discount per month, this will still hit customers where it hurts: their pockets.
Ars Technica recently reviewed the billing changes via Ontario-based independent ISP TekSavvy. The company has now had to introduce an "insurance" option, basically a subscription fee that gives you additional monthly usage. They've also introduced "usage vault" plans as a means of customers being able to make an advance payment for extra data.
Here's TekSavvy's own breakdown in light of the new UBB changes:
What can I do?
You've got until March, 1, 2011 to try and reverse this decision. Here's how:
- Canadian media non-profit advocacy group OpenMedia.ca has unleashed a 'Stop The Meter' petition campaign that lets you easily contact Industry Minister Tony Clement (via a handy form!) to protest the decision. (So far, it's gotten over 79,000 signatures.)
- DigitalHome.ca points out that the 'Federal Government now has 90 days to "review and bury" ... the CRTC decision'. They suggests you phone, mail or email your MP or issue your complaint with the CRTC.
Further Resources:
- Usage-based Internet Ruling Draws Fire
- Canadians Just Became World's Biggest Internet Losers
- Markus Giesler on Usage Based Billing and Marketplace Drama
- Stop The Meter On Your Internet Use
Tags: ArsTechnica, CRTC, DigitalHome, FederalGovernment, Giesler, Guide, Help, IPTV, Insurance, MPs, More…
Replies to This Discussion
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Permalink Reply by alexander Mollison on
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I chose to get rogers high speed its $99.00 and super fast hopefully it will not go up in price, it suits me I do not download a lot but do a lot of pictures and some Utube. I went for download speed(I hate waiting lol)
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Permalink Reply by Clayton Talbert Sr. on -
Alexander,
That's fine if you have the cash to afford that amount monthly. Personally, I don't and I feel that it is outrageous for some one to ask that amount for super fast internet connections. I don't believe the CRTC will back off; the fix is already in and we are going to have to pay the price if we want the service!
I intend to send in a call to my MP and my MPP and ask them to speak to this rip-off and see where this go's!!!
CTsr
alexander Mollison said:I chose to get rogers high speed its $99.00 and super fast hopefully it will not go up in price, it suits me I do not download a lot but do a lot of pictures and some Utube. I went for download speed(I hate waiting lol)
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Permalink Reply by Gary H on -
I would be in favour of usage fees. It's like gas for your car. You pay only for what you use. What could be simpler or fairer?
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Permalink Reply by Edith Francis on -
Franklly, I agree with Gary H. His suggestion seems most beneficial to all internet users. If individual user fees, are implemented, I guess we'd be content to remain with our current service providers. I know I would...As I see it, service providers who increase their fees, across the board, without taking into consideration the amount of usage of each, individual customer, would be at risk of losing their customers to the lowest bidders. (Edith F.)
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Permalink Reply by ZoomerStaff on -
Well, looks like Ottawa is re-considering:
“The CRTC should be under no illusion — the Prime Minister and minister of Industry will reverse this decision unless the CRTC does it itself,” a senior Conservative government official said Wednesday.
“If they don’t reconsider we will reverse their decision.”
— 'Ottawa to reverse CRTC internet billing decision' — Toronto Star
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Permalink Reply by ZoomerStaff on
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There's good commenter commentary here on the decision:
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I do not have the money but love the speed, its my way of keeping in contact with relatives etc and its a life line to me keeps the brain active.
Clayton Talbert Sr. said:Alexander,
That's fine if you have the cash to afford that amount monthly. Personally, I don't and I feel that it is outrageous for some one to ask that amount for super fast internet connections. I don't believe the CRTC will back off; the fix is already in and we are going to have to pay the price if we want the service!
I intend to send in a call to my MP and my MPP and ask them to speak to this rip-off and see where this go's!!!
CTsr
alexander Mollison said:I chose to get rogers high speed its $99.00 and super fast hopefully it will not go up in price, it suits me I do not download a lot but do a lot of pictures and some Utube. I went for download speed(I hate waiting lol)
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Permalink Reply by Yvonne F. on -
I thought the Federal govt. was not going to allow this to happen.
It is called gouging the people ... and that these companies are making really
big $$$ already.
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Permalink Reply by redo on -
I just got my notice from Cogeco and they have allowed three days to accept their terms. If I use any of their service after the three days, I am deemed to have agreed to their terms. It's not like I have much choice. Where I live, there is only Bell as an alternative and they are doing the exact same thing. If you were to argue with them, they fall back on the argument that the CRTC sets the regulations.
The cable companies are just doing this as a mechanism of excluding all Internet competition from the 'movie-on-demand' business (IE. Netflix and the like).
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