Rogers Shrinks Download Limits As Netflix Arrives
Meshach writes "Hot on the heels of Netflix coming to Canada, Rogers (one of the biggest ISPs in Canada) has shrunk download limits. 'As of Wednesday, new customers who sign up for the Lite service will be allowed 15 gigabytes, a drop from the 25 GB limit offered to those who signed up before July 21. Meanwhile, any new Lite user who goes over the monthly limit will have to pay $4 per GB up to a maximum of $50 — a spike from the previous $2.5 per GB surcharge.' Officially, there is no connection between the two events, but it seems an odd coincidence, especially when Rogers charges customers who exceed their bandwidth allowance."
I like how the overflow bandwidth costs over 500% wholesale costs. $4.5 is just insane. I almost wonder if 3G bandwidth isn't cheaper than that. Just goes to show that they aren't doing this in order to offer everyone a good service, but rather to punish and blackmail moderate users into buying a higher tier subscription service.
I can understand limits on consumer lines. You can have fast and cheap, but not all the time if you want fast all the time it costs more. Ok, but that still needs to be a reasonable amount. The 250GB cap Comcast does is quite reasonable. That's enough to do a whole lot and never get near it. Mainly the compulsive torrenters are the ones affected. But 15GB? That is just stupidly low. You can hit that without Netflix. Surf the web regularly, watch Youtube, download some game patches and you are there.
Talk about unreasonable :P.
This is just the opening shot in the upcoming battle between cable providers that want you to use *their* on-demand movie systems vs Netflix and similar companies. It's not surprising it happened with Rogers first, but this will inevitably happen in the US too. Netflix's streaming of movies is the residential ISP's worst nightmare come true. They'll be in a position where they have to tell their customers that something they used to be able to do for no additional cost will suddenly become a new confusing expense showing up on their cable bill with no apparent additional benefit to the customer.
At the same time, they are pushing their Rogers on Demand service to all their customers too. http://www.rogersondemand.com/
Which means either charging people to watch TV content by 'downloading' it, or maybe, will they give a break to people who are on their network to use their service?
This is precisely why net neutrality is important and required.
Rogers not only has bandwidth concerns. They also operate a chain of movie rental stores. Netflix poses a dual threat to Rogers.