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Bell Canada Ordered To Justify Traffic-Shaping Practices

somecanuckchick writes "The Canadian Radio-Television and Telecommunications Commission (CRTC) has ordered Bell Canada to justify its traffic-shaping practices. The Canadian Radio-Television and Telecommunications Commission on Thursday told the company it has until June 23 to make public data that was marked confidential in a May 29 filing. Bell had said it needed to keep quiet the information, which details the level of internet traffic and possible congestion on its network, for competitive reasons."

25 of 140 comments (clear)

  1. Bell Canada is not the only one. by He+Who+Waits · · Score: 4, Insightful

    Will Rogers be next? Cogeco?

    1. Re:Bell Canada is not the only one. by Anonymous Coward · · Score: 5, Insightful

      Will Rogers be next? Cogeco?

      Probably not, Bell Canada took the particularly egregious step of throttling not only their own customers, but everyone else's customers as well. It's one thing to ask people who have signed contracts with you to grab their ankles, but going after other companies' customers to make sure that your competitors' service sucks as bad as yours does... well, I suppose I could just say that this is the future of capitalism, as much as the free marketeers insist it won't be.

      I'm sure that one of them will post saying how it's the government's fault for "letting this happen" and that if there weren't any rules or anything to even bother to pretend to look like someone is in charge, this wouldn't have happened because Bell Canada only did this to "stick it to the man" and not for any personal gain.

    2. Re:Bell Canada is not the only one. by CastrTroy · · Score: 4, Insightful

      First, it's nice that it's easy to opt out, and also, it's a nice way to warn you that you are approaching your limit. With any other method, you could argue that you had no way of knowing that you were approaching the limit. With this method, it's pretty hard to argue that you weren't aware. Although I guess if you only use your internet for FTP traffic, or for connecting to your work VPN, and browse from there, then there's no way you would have known. However, for 99% of people using their service, it's probably the best way to warn them. Most people don't give their ISP their real email address, and don't use the one provided to them by their ISP. A phone call from rogers is usually them trying to sell you something, so I don't answer calls from them, and when I do pick up by accident, I hang up as soon as I hear rogers (or if it takes them more than a second or two to respond to "hello").

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
  2. "Competetive Reasons" eh? by Nursie · · Score: 4, Insightful


    I'm guessing that means "if our customers find out the crap we're pulling then they'll go to the competition".

    Either that or that competitors will realise exactly how much it's possible to dupe their customers into acxcepting as "just the way it is" before anyone gets upset.

    1. Re:"Competetive Reasons" eh? by Cathoderoytube · · Score: 5, Insightful

      Considering one of their supposed traffic shaping methods is deep packet inspection, the 'competitive reason' would be they'd be sued till their arms and legs were bloody stumps and they were just rolling around on the street while angry former customers beat them with shovels. Thus allowing the likes of Rogers to get the upper hand.

      -Also on an unrelated note, I just received my internet bill, and I got hit with an extra $25 for 'bandwidth usage'. Thanks Bell

      --
      I have nothing compelling to say
  3. Competitive reasons? by Oxy+the+moron · · Score: 5, Insightful

    Is the implication here that, if they disclose how they are shaping their traffic, competitors will somehow seize that information and offer better service as a result? I don't think Bell Canada's customers are just chomping at the bit to get more traffic shaping on their lines, and I don't think they'd be any happier about it with a competitor, even if the prices were lower.

    About the only logical application I can see of "competitive reasons" would be, "Oh no! Now our customers know we actually *were* screwing them hard, and now they're leaving for our competitors in droves!"

    --

    Proudly supporting the Libertarian Party.

  4. Do not cry "victory" yet. by Pig+Hogger · · Score: 3, Insightful
    Do not cry "victory" yet.

    The Bell Telephone Company of Canada is a very liberal (meaning "associated with the liberal party of Canada", who is not currently in power, but has managed to thoroughly infiltrate and subvert the federal State apparatus, up to and including the Supreme Court of Canada) company.

    As such, it just has won a case before the Supreme Court of Canada, despite that Bell's case flies in the fact of Canadian law and jurisprudence.

    The CRTC board is also throroughly liberal.

    So it will not be suprising that the CRTC will eventually rules in favour of Bell, and it will probably because it will face pressure from liberals.

    1. Re:Do not cry "victory" yet. by Anonymous Coward · · Score: 1, Insightful

      As such, it just has won a case before the Supreme Court of Canada [wikipedia.org], despite that Bell's case flies in the fact of Canadian law and jurisprudence. What the hell? The Quebec Court of Appeals ruling was a major odd point, and was overturned for the exact reason that the considerations bondholders is not and should not a major concern for the board of directors. The QCA decision was the abnormal conclusion; not the others.

      What "flies in the face of Canadian law and jurisprudence" is in fact the idea that debenture holders -- who pretty much by definition have no say in how the company is run -- should somehow be entitled to have a say in the way a company is run. A debenture holder has no stake, beyond that their guaranteed interest income and principal get paid to them. And if Bell or any other company defaults on that or takes actions that prohibit that course of events, it IS a legal concern. Getting bought out by private equity does not limit their ability to pay bondholders; it just limits the ability of bondholders to generate additional capital gains on those bonds in secondary/tertiary markets since those bonds will now have a lower market value. The face value of the bond -- their contractual obligation -- remains unchanged.

      THAT'S why the Supreme Court ruled so quickly -- not some vast Liberal (note the big L) conspiracy.

    2. Re:Do not cry "victory" yet. by why-is-it · · Score: 2, Insightful

      The CRTC board is also throroughly liberal.
      So it will not be suprising that the CRTC will eventually rules in favour of Bell, and it will probably because it will face pressure from liberals.

      Please remove your tinfoil hat - there is no conspiracy here.

      It is the nature of regulated monopolies to try and co-opt their regulatory agency. From their perspective, it would be bad business (and bad for shareholders) not to. There is simply too much at stake.

      Corporations also bribe^H^H^H^H^Hdonate money to politicians all the time, and it is obvious that those donations pay off big time.

      If Bell has made efforts to get in good with the Liberal Party of Canada, it is because that is the party that tends to govern, and the party that has appointed most of the members of the CRTC.

      You will notice that the US telcos have done a very good job of co-opting the FCC, regardless of which party appoints the chair....

      --
      *** Where are we going? And what's with this handbasket?
  5. Bandwidth versus latency... by dada21 · · Score: 4, Insightful

    Almost everyone I know that isn't a geek cares about one thing when it comes to the Internet: speed. But the non-geeks don't understand that speed is not about how fast things download always, but sometimes about how fast things appear. It's the bandwidth versus latency issue.

    I've come to discover in my 21 years of being "online" that even with geeks, low latency is more important than high speed most of the time. I ran a large multinode BBS, and the most important reason for having a faster modem was not to download files quicker. It was so that the site would appear quicker: the message forums, the BBS doors (online games), the chat area, etc.

    Today, when I see people complain about the speed of their Internet, it's always a latency issue. Maybe some spyware swapped DNS servers, maybe they're using an antiquated dial-up; whatever the case, latency is more important to the vast majority of users than bandwidth. This is why traffic shaping is so important, and also why keeping it private is also important. The moment that the few geeks who demand maximum bandwidth find a way around traffic shaping, those who demand low latency will suffer. For the huge majority of Internet users, if their downloads are 200kbps or 2000kbps, they don't care. While they're downloading, they're surfing, and they want that web site to pop up on the screen instantly or quicker.

    We have to look at the real problem here: the lack of competition. Even if there are two or three competitors in a market, there is still room for more. When you realize that the lack fo competition is due to the stifling of local, state and Federal government regulations, you'll find the true culprit for what ails you: too many regulations preventing competition from bringing to the market what you want at a price you're willing to pay. Get rid of government strangeholds and the Internet will blossom further. This article tells me things will get worse as those who promise to protect you will only find new ways to collect their paychecks in the form of political contributions.

    1. Re:Bandwidth versus latency... by CogDissident · · Score: 4, Insightful

      The problem comes when people advertise that they offer 200k/sec internet, and provide 20k/sec connections. Or do things like say:
      "hey, if you want to download from bit torrent at more than 2k/sec, pay us more money."
      or
      "We want you to use our search engine, not google, so we're going to make your ping to google's site 100 times longer than normal. See how slow google is? Must be their fault. Use our fast service.

    2. Re:Bandwidth versus latency... by gnuman99 · · Score: 3, Insightful

      It is also *VERY* common for people do to the following,

        1. start bittorent of something
        2. notice latency goes through the roof and bandwidth to drop to nothing

      or

        1. start uploading some large file
        2. notice they can't use the Intertubes anymore as latency is superhigh, bandwidth at 5% what it should be

      Then they scream at the ISP for throttling them. The ISP says they do not throttle. Who is right? In many cases, it is the ISP. Customers max out their upload bandwidth then the ACK packets for TCP connections are stuck. This causes TCP to slow down to a crawl. You can easily reduce your 2M/400k connection down to 50k/400k or even worse.

      Or people scream about latency when DNS servers are slow.

      Cable tends to be less of a problem in this respect than DSL. But both can be hammered by user's lack of understanding of this stuff.

      Now, in Bell's case, this is not the issue as they are throttling 3rd party providers over their own lines.

      When you realize that the lack fo competition is due to the stifling of local, state and Federal government regulations, you'll find the true culprit for what ails you: too many regulations preventing competition from bringing to the market what you want at a price you're willing to pay.

      What? Are you on crack or something? Government mandated line sharing is exactly what is needed for competition to occur! If that did not happen, you would have exactly a choice between 2 broadband providers,

          1. Bell
          2. Cable company

      Because of *government mandated* rules, Bell had to sell last mile access at same price as they would sell themselves. This is what allowed competition to flourish.

      Government mandated line sharing, government mandated rules regarding net neutrality is exactly what is needed.

      The rules make sure that competition has a chance.

      A lot of government regulations are vitally needed for Internet and other areas,

        1. to address net neutrality
        2. to address access to last mile
        3. environmental rules for developments of any kind
        4. guess what would happen if there was no airline regulations for maintenance of their planes? or enforced rules of the road?

      If there are no rules, you'd get tiered internet with pocket spying without ability to get a better provider than the 2 you can get locally.

    3. Re:Bandwidth versus latency... by CogDissident · · Score: 2, Insightful

      So, because you don't like it, means we should ignore it? Great plan.

      Monopolies, the "natural monopolies" can also be necessary. What if your city has a new company that also wants to do waste management. Are you going to let them dig another sewer system under your city? What if power companies didn't have to share power lines, want 4 or 5 different power poles on each corner?

    4. Re:Bandwidth versus latency... by gnuman99 · · Score: 2, Insightful

      WTF are you talking about? You want 10x redundant infrastructure so you can get access from 10 internet access suppliers? That is *nuts*.

      Government mandated last-mile access for 3rd party ISPs is vitally needed everywhere. This is *exactly* what is happening in Bell's case - 3rd parties have access to the last-mile. Then their customers are throttled as well as Bell's. This is the problem. If Bell only throttled their own customers, CRTC wouldn't even get involved.

      The shit is flying because of government *mandated* access to the Bell's infrastructure, and Bell doesn't want to play ball.

    5. Re:Bandwidth versus latency... by Altus · · Score: 2, Insightful


      If the third party is paying for bandwidth on Bells network (other than the last mile) shouldn't they receive that bandwidth without any filtering by Bell?

      If they are selling X bandwidth and they throttling it back that would seem to be a breach of contract with the third party ISPs.

      --

      "In America, first you get the sugar, then you get the power, then you get the women..." -H. Simpson

  6. Translation by IceDiver · · Score: 4, Insightful

    Bell doesn't want anyone to know just how much money they've been siphoning off that should have been spent on infrastructure upgrades to avoid the current congestion in the first place.

  7. Re:That's not competition.... by Darkness404 · · Score: 3, Insightful

    Vote with your wallet! Truer words were never spoken or typed.

    Ok, now tell me of an ISP that doesn't either packet-shape, throttle or anything else for a cheap connection, that is fast. Oh and it needs to be in rural areas where right now only AT&T, Comcast and Time Warner are now. If you find one, then I will switch. Until then, the ISPs have a virtual monopoly where I live.
    --
    Taxation is legalized theft, no more, no less.
  8. Justification? by callinyouin · · Score: 2, Insightful

    "Everybody else is doing it!"

  9. Re:No doubt... by zappepcs · · Score: 4, Insightful

    You are exactly right, and I've written about this problem in North America before. We, as consumers, have reason to believe that truth in advertising is how things are supposed to be. If the cable/telco companies had to include the warnings that drug manufacturers do, the fine print on a broadband contract would grow by several pages. Then we'd invoke clear/simple advertising laws.

    The only reason that they can claim competitive reasons for not revealing information is because they are at capacity. They are selling consumers contracts that they can't possibly provide service on.

    To my knowledge, not one ISP has physically demonstrated the need for shaping, nor shown in actual use how it works for them. File sharers do not use all the bandwidth they purchased and even if they did, they paid for it.

    I don't know how many more court cases it will take, but someone needs to hold their feet to the fire about what they sell, and what they provide, and the dichotomy that creates. Bait and switch laws, lemon laws, and the ideology behind them should apply here. Either you are selling 3Mbit/s or you are selling a Maximum of 3Mbit/s with the following 4 pages of restrictions on protocols, application usage, time of day/week restrictions, and outright bans on some protocols/applications.

    The courts need to clear that up.

  10. Laughable. by DarthVain · · Score: 4, Insightful

    The excuse to not release it for "competitive" reasons is laughable.

    A) The ONLY competition that exists is the OTHER mega telecommunications conglomerate Rogers Communictions/Shaw/Cogeco/Etc... Who also use the exact same practices.

    B) ALL the other independent ISPs it was pointed out sometime ago, use either Bell's or Rogers's lines, and thus are traffic shaping also if they know it or not.

    C) The only reason they don't want to release is this isn't mainstream news yet. Your average Joe doesn't know what the heck traffic shaping is. However when journalists start looking it up to report on it, thats a lot more negative press, and frankly people are getting pretty sick and tired of the communication duopoly. They might also remind people about reports of bandwidth capping, or that how they hardly ever really provide the speed that they advertise. They lie, cheat, steal, annoy, mismanage, and impose fictional means and limited options to ensure profit. Heck you ever wonder why Bell Canada doesn't offer Dry DSL? Gee could it be because they are a PHONE company, and you don't need a active phone line to use it. Its all about selling packages, and convergence. I think it is time Canada took a SERIOUS look at our telecommunications situation, and what is being done around the world. If we want to be competitive into the future, leaving it in the hands of these asshats probably isn't a very good idea.

  11. Way to go CRTC! by DarthVain · · Score: 3, Insightful

    While I am at it, a hearty "Here Here!" to the CRTC who are doing their job as oversight of the industry. I only hope they follow through with Rogers Communications as well, and when it is all out in the open they actual make some sort of decision with teeth.

    Quit pissing about. The #1 question is are these companies working in Canadians best interest? If the answer is no, then something MUST be done about it.

    For all your radical capitalists out there that will immediately point out that these are publicly traded companies, and that they ultimately report to the shareholders. I will preemptively smash your argument saying in this case their is a 3 way conflict in that 1) the infrastructure is subsidized by tax dollars, 2) is a government regulated industry, and 3) today telecommunication s are vital and important role of any country's security and growth.

  12. Law should be to disclose by Anonymous Coward · · Score: 5, Insightful

    So let's end this confidentiality and pass legislation to force all Canadian isp's to provide the full set of specs. It seems to me that just like buying other equipment or services. The specifications should be displayed and cannot be misrepresented. Just like buying a TV or other elctronic device I want to see the specs so I may make an informed choice. There is no myterious technology here. It is just like any other consumer device.

    I want Full Disclosure. I want to see exactly what my purchase is capable of and what I will recieve right on the label, so to speak. I want it just like any other product legislation in Canada. Why are only the internet providers allowed to pull this type of scam? Car company's are not allowed to misrepresent the engine displacement, nor can stereo amplifier companies misrepresent peak or continuous power output or even try to confuse the consumer. They must state what they are selling truthfully and according to standard measurement methods. If they tried to pull this type of scam, they would be paying huge fines.

    The consumers should at least have the information available and choose to read it or not. Just like other product labelling in this country. If people don't want to think or let their friend pick for them, then fine, But get it out there for all to see.

  13. Re:That's not competition.... by deraj123 · · Score: 5, Insightful

    Bullshit. They've been granted the right to use public property to lay their infrastructure. Do any of these companies actually own all of the land that their lines are buried in? Therefore, the people have every right to place restrictions on how they can provide service.

  14. Re:excuse me? by Locklin · · Score: 5, Insightful

    The "Free Market" argument doesn't apply here. Bell has been subsidized by the government for the better part of a century, and given guaranteed monopolies in various areas (not to mention the fact that their lines are on public land). Bell does not operate in a free market, and never has.

    On top of that, the "Free Market" doesn't work when the consumer is lied to and deliberately misled (there is nothing about traffic shaping in Bell's TOS, or in their contracts with the resellers).

    --
    "Knowledge is the only instrument of production that is not subject to diminishing returns" -Journal of Political Econom
  15. Are there any examples of competition solving this by big_paul76 · · Score: 2, Insightful

    sort of problem?

    Because I see a couple of problems with competition:
    1) Competition, to function properly, requires that consumers be basically pretty well informed. If I start talking to say, my mother or my girlfriend's parents about shaping and throttling and ping times, well, I might as well just be making up words that as far as they knew, I just made up. Competition falls apart with uninformed consumers.
    2) "The market for lemons" argument. There's a wikipedia for it, or just google for it, but basically it's the argument that, if a customer cannot tell the difference between a quality product and crappy product in advance of buying it, then the crap will drive out the good stuff.
    3) The idea of a natural monopoly. I don't think it necessarily makes sense for us to have 2 or 3 or 10 players in the marketplace for internet services, any more than it would make sense for me to have 2 or 3 sets of pipes for water and sewer coming into my house so that I can decide, day by day, whether to use water supplier A vs B, based on prices and service and quality.

    Some things simply _are_ a natural monopoly, and though it seems like heresy these days, competition will simply make situations like that dramatically _less_ efficient, not more.

    Of course, I'd love to be proven wrong here. Anybody got an example that would do that?

    --
    The plural form of "anecdote" is "anecdotes", not "evidence".