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CRTC To Allow Usage-Based Billing

Idiomatick writes "The CRTC ruled in favor this week for usage-based billing. Bell Canada was given a monopoly on lines in Canada, and in exchange they were made to resell to competitors at cost in order to have a functional market. The new CRTC ruling will allow Bell to charge their competitors more money based on individual customer usage. They are now able to implement a 60GB cap on a competitor's highest speed lines (charging $1.12/GB for overages). The effect on the market seems clear."

38 of 282 comments (clear)

  1. 60GB is nothing by Murdoch5 · · Score: 2, Interesting

    Why not make the cap reasonable, 60 GB is literally nothing for an average consumer. I often use up to an exceeding 100GB / month. 60GB is fine if your a light user and thats all you are if your using 60GB, but start some servers, host some web pages and even a little downloading and you'll quickly get up and see 100GB/month.

    So what I'm really say is why not make the cap reasonable and move it to 100GB, that will fit all users, past 100GB and your not being to legit on what your downloading.

    1. Re:60GB is nothing by matazar · · Score: 2, Interesting

      Hell, even for light users it's already a problem.

      We have a family of 6, every one of us has our own computers. Factor in Steam games from me, netflix from everyone else plus every day usage and 60GB is nothing. We already have 2 connections for this exact reason.

      Why they seem to think a 14mbps connection should have a 60GB limit is beyond me. That's Cogeco though, not Bell, but it's the same shit.

    2. Re:60GB is nothing by danny_lehman · · Score: 3, Informative

      For any Canadians reading today:

      There are two petitions you should sign if you don't feel like this is right.

      http://stopubb.ca/ - A petition to stop forced usage based billing.

      and if you dont like the fact that the CRTC appears to bend to the will of the telcos without regard for the consumer, there is a petition to dissolve the CRTC here - http://dissolvethecrtc.ca/

    3. Re:60GB is nothing by KiloByte · · Score: 4, Informative

      I'd say there should be a law that in all advertising they need to include the long-term connection rate as well. Toss in the up rate if it's different (and with those lying shits, it always is).

      That 14mbps connection would have to be labelled: 14/0.5mbps, 22kbps sustained -- since 60GB monthly is just that.

      --
      The creatures outside looked from Alt-Right to Antifa; but already it was impossible to say which was which.
    4. Re:60GB is nothing by aristotle-dude · · Score: 2, Informative

      Online petitions do nothing. Send letters to the CRTC, your local MPs and the Prime Ministers office.

      Another idea would be for a lot of people to protest this by requesting your payroll people to stop deducting your income tax, setup an interest bearing account to deposit what you would normally have deducted for tax, sending a letter to the tax people indicating your reason for doing this (as a protest) and paying your taxes at the end of the year instead of every pay period.

      It is legal to not pay your income tax until the end of the year.

      --
      Jesus was a compassionate social conservative who called individuals to sin no more.
    5. Re:60GB is nothing by realityimpaired · · Score: 3, Insightful

      You're confusing your contractions of yore.

    6. Re:60GB is nothing by Rasperin · · Score: 2, Interesting

      WRONG.ABSOLUTELY WRONG! Ok caps off, what do you think they do when they get the biweekly amount of cash? Throw it in a bank for next year, that's a joke! They invest it in attempts to raise their profits, typically in the US dollar or as loans to the US. Either way if a lot of people did it, it would make a (very) substantial impact on the government. On a plus note, you could put that tax money into an interest bearing CD and come out ahead.

      --
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  2. Quick Canada Lesson by EmperorOfCanada · · Score: 5, Insightful

    In Canada we have no competition for apparently 6 reasons:
    - Previous governments gave a monopoly to friends who supported them. Where these monopolies have collided they don't compete.
    - We have no working anti-monopoly laws in Canada preventing collusion and other anti-competitive behavior. Technically we do but please tell me the last time a company was fined and how little they might have been fined.
    - The CRTC (our FCC) is the tool that previous governments used to give their friends these monopolies and thus the CRTC will enforce the monopolies behavior not prevent it.
    - Any competition that poses an actual threat will be bought out.
    - The present government is a minority government and thus is focused on other fish that need frying such as keeping power and maybe finagling a majority. How many bytes people can download is not on their radar for now.
    - Many of the telco monopolies also are media giants thus they control what the pubic thinks about this stuff.

    1. Re:Quick Canada Lesson by Nerdfest · · Score: 4, Interesting

      With this, bot Bell and Rogers (the cable internet provider) have now both put steps in place to discourage people using Netflix, etc. NetFlix of course announced around September that they would be providing service in Canada. It's much reduced service from what's available in the US, but the available content will increase as time goes on. Rogers cut their bandwidth limits in half, and now Bell has gotten usage based billing, specifically to discourage people using TekSavvy et al, which used to have un-shaped, unlimited downloads.

      You can run through the current bandwidth limits pretty quickly watching HD content.

    2. Re:Quick Canada Lesson by sarhjinian · · Score: 4, Informative

      Most of that population lives in three cities, and 90% of it within a few kilometers of the American border. The capital costs are really not that high.

      --
      --srj/mmv
    3. Re:Quick Canada Lesson by shovas · · Score: 2, Insightful

      You'd have to be using Netflix as a replacement for CATV to have to worry about going over your cap.

      Something I and many others would like to do but *shock* all avenues of attempting to access competition to the majors results in finding out no one is particularly better than another, no matter what metric you use.

      Cable TV is getting very hard to justify these days when, day after day, you keep noticing "500 channels and nothing's on." I would love to have an alternative but there's no competition.

      --
      Selah.ca. Pause, and calmly think on that.
    4. Re:Quick Canada Lesson by profplump · · Score: 2, Insightful

      I've been saying this for years -- would you rather download the known-good episode at high quality directly from the virus-free source immediately when the episode is broadcast via traditional channels, with a few commercials, or download a possibly fake, possible virus-ridden, unknown-quality/language/subtitles copy 2-12 hours later without commercials?

      I'm sure some people would still pirate things, but if you gave people an "ABC.com downloader" app that did bittorrent from your own commercial-filled seeds 90% of users would never try anything else. I'd certainly be willing to hit "30 second skip" a few times per episode to have known-good, on-time releases.

    5. Re:Quick Canada Lesson by Shark · · Score: 2, Insightful

      We're an ISP with at least twice as many customers. It'd be wonderful if what your friend said was true, but it definitely isn't. Just to hook a cable onto a telephone pole costs a substantial rental fee, per post. Never mind underground fibres.

      It's okay if your 1000 customers are all in the same 3-4 square kilometres but we span about 200km. Bandwidth itself is cheap, we could afford to give them a fair bit more than they get now if they all were able to move within a few kilometres of our main links. We certainly would be happy to do so. Transporting it to them is what costs a bundle.

      In areas where you have the kind of density that makes running your own fibre economical, you usually also have 2-3 huge telcos very eager to crush any hopes you have of making a profit.

      --
      Mind the frickin' laser...
  3. This is going to be hellish in 5 years by assemblerex · · Score: 3, Insightful

    This is like charging $1 per 1.44mb , very soon this arbitrary measurement will hamper innovation and Canada as a whole will suffer.

    1. Re:This is going to be hellish in 5 years by MoonBuggy · · Score: 2, Interesting

      Yup. The fact that they didn't implement some kind of scale based on percentage use of the total capacity or the like strongly suggests they're either incompetent or there's a conflict of interests. In either case, the wrong people are doing the job.

    2. Re:This is going to be hellish in 5 years by Anonymous Coward · · Score: 3, Interesting

      I calculated what a Canadian friend's new bill is going to be. Currently he pays the base rate of $40, P2P is throttled, both upload and download count towards the new cap, and three people in the house do routine netflix streaming. They use about 350 GB a month. Under the new billing it's going to be $100 (per GB charges start up again at the 300 GB mark). Likely anyone that does any streaming at all will hit the intermediate price cap and thus their bills will go directly from $40 to $62.50. (We looked up streaming stats and apparently an hour of streaming is about 1.6-1.7 GB. Doing the math, even if we round the numbers down to 1.5 GB/hour, any household that averages over an hour and 47 minutes a day is going to hit the middle price cap. Not hard at all for just two people who follow a few different shows each and watch a few movies together on the weekends. Googling up some stats, apparently the average american spends 2.8 hours per day watching TV...)

      So a company that's already making a profit now just got permission to jack the rates up 50% for a whole lot of normal people.

    3. Re:This is going to be hellish in 5 years by Anonymous Coward · · Score: 3, Insightful

      I can think of about 300,000 with Teksavvy that will be affected not including the multitude of other GAS companies.

      "$22.50 is lunch money at Harvey's for a couple of days, or one hour of pay for a halfway-decent engineer"

      And for those making minimum wage, barely able to pay for the necessities let alone take-out? $22.50 represents a 50% increase in my bill - it puts it at the same level as a week of food for 2 people. Total for a cell plan + internet it will be over $150. At minimum wage that's 25% of their yearly income on being able to stay in touch with the world? It's ridiculous.

    4. Re:This is going to be hellish in 5 years by hawguy · · Score: 3, Informative

      Uhh, you might want to check your math.

      300GB / 30 days/mon / 24 hours/day / 3600 seconds/hour = 115KB/second, only around 20% of a 5Mbit DSL line..

      You can check my math here:

      http://www.google.com/search?q=300000000000+%2F+30+%2F+24+%2F+3600

  4. that makes comcasts 250gb cap and higher business by Joe+The+Dragon · · Score: 2, Insightful

    that makes comcasts 250gb cap and I think it's higher on business planes look real good.

    But not as good as fios and att no caps.

  5. Next Election by the_other_one · · Score: 2, Informative

    Do Not vote for the Conservative Reform Alliance Party!

    --
    134340: I am not a number. I am a free planet!
  6. Attn : Canadian Politicians by Anonymous Coward · · Score: 2, Insightful

    I could care less about most of the other issues and debate topics.

    State publicly that your party is against usage based billing and you've got my vote.

    It's that simple.

    (For the record, I'm in the 30-35 year old male demograph, with above-median income.)

  7. Re:You WANT usage based billing by king+neckbeard · · Score: 4, Informative

    You might have a point if telecoms were competitive markets, usage was the biggest cost factor, and prices were in any way representative of costs. These are monopolies, peak capacity and running the lines are the real cost last time I checked and it'll probably result in virtually everyone paying more.

    --
    This is my signature. There are many like it, but this one is mine.
  8. Re:You WANT usage based billing by Chryana · · Score: 4, Insightful

    Are you a shill, or some sort of moron? I live in Canada. I am directly affected by this. In France for the price I pay monthly, I could get a line which is 10 times faster than mine is along with unlimited phone calls to a bunch of places and HDTV. The speed of my internet line, 3 Mbps, has not increased in the past 7 years I have lived in downtown Montreal, which is about as urban as it gets in Canada. The price I pay for that same service, though, has increased quite significantly (at least 20%). Why was Bell able to offer unlimited access plans 5 years ago, and now they can't? Should they not have upgraded their lines since then? Everyone I know that uses the services of Bell hates their guts because they are complete scumbags.

    Usage based billing means more people can afford internet service,

    Have you bothered checking the pricing schemes Bell offers? Check their lowest offering. It says it's 20$/month in Quebec, but it's 25 if you don't have a phone or satellite service deal with them already. Oh, and the speed is 500 kbps with a 1G data cap. They were able to offer unlimited at 3 Mbps 6 or 7 years ago for 30$ a month. I guess poor people don't do much but change their status on Facebook.

    Please go back under the rock you came from. For same money that I pay, people in Europe and Asia are getting unlimited data plans with speeds that approach the speed of my LAN.

  9. Re:You WANT usage based billing by Anonymous Coward · · Score: 3, Informative

    No you are an idiot and this has absolutely nothing to do with costs associated with bandwidth.

    This ruling means now that companies like Teksavvy, that have purchased a specific amount of bandwidth, can no longer divide it among their customers as they see fit.
    This ruling means that if any individual uses more bandwidth than what Bell's package provides, they have to be charged extra fees. It doesn't matter that 6 other Teksavvy customers use very little and their aggregate bandwidth is lower than the amount Teksavvy purchased from Bell.

    There is ZERO chance this will bring prices down as wholesalers like Teksavvy have no areas to differentiate their services as now prices are effectively set by Bell. (No companies is going to survive selling at a loss)

    The problem is we have service providers that are also content providers. The internet is obviously becoming a real threat to traditional content providers and companies like Bell can now manipulate the market how they see fit. How's gonna use Bell VoD or Cogeco VoD at $x.xx a movie when Netflix offers a compelling choice at $7.99/month, not many. So service providers like Rogers, Bell move to be competitive is to slash bandwidth limits and charge more overages. So basically eliminate or restrict competition. The CRTC was set up to prevent this but again they are the ones enabling it.

  10. Re:You WANT usage based billing by canajin56 · · Score: 4, Insightful

    Bell already HAD usage base fees. This isn't about what Bell is allowed to do to their own customers. This is about what Bell is allowed to do to people who are NOT their customers. Bell is now allowed to demand bandwidth usage from third parties that use their lines, and tax those third parties. That is, TekSavvy connects their modem to a Bell copper line, and then wires that modem to their backbone. And Bell gets to hold a gun to your head and say you cannot download more GB than WE allow our customers or else it's not fair to us! Please at least read the summary.

    --
    ASCII stupid question, get a stupid ANSI
  11. Bell will destroy small business competitors by ph · · Score: 5, Interesting

    Bell is doing this purely to maximize their profit and put the wholesalers who are trying to compete with them out of business.

    The rates Bell has given to wholesalers of their GAS network are the exact same as their RETAIL rates for bandwidth. That means wholesalers have ZERO margins, and would have to actually incur costs to collect this usage charge on behalf of Bell. If there’s any errors, I'm sure it comes out of the wholesaler's pocket as well.

    Wholesalers used to be able to compete against the big guys by having better bandwidth caps, better technical support, more flexable plans -- Bell has used UBB to level the playing field to where only they can win.

    Why are the first 20 gigabytes after 60 so valuable ($1.12 per gig), then from 81 to 300 gigs are zero-cost? Because Bell has structured the system to screw over as many people as possible. They did an analysis of where the sweet spot is to collect as much money as possible from wholesale subscribers, then structured their rates to match.

  12. Re:An inquisitive Canadian wants to know by Interoperable · · Score: 2, Informative

    Depends on where you live. If you live in Toronto, then it affects all of Canada because as far as you're concerned, Toronto = Canada.

    Joking aside, Bell dominates the market in most of Ontario and Quebec. Most of the other providers in Quebec and Ontario are reselling Bell's bandwidth which means that this impacts a large portion of the internet business in Canada. Moreover, I'm sure it sets a precedent that would be relevant to resellers of Shaw or Tellus bandwidth in the West.

    Shaw tends to be quite good compared to Bell but that could change. They have absurdly low data caps but they never enforce them; unlike Bell, which demands a pound of flesh for every GB over your 60 GB limit.

    --
    So if this is the future...where's my jet pack?
  13. Re:You WANT usage based billing by jenningsthecat · · Score: 3, Insightful

    The problem IS NOT usage-based billing per se. The problem is that Bell can now apply usage-based billing to third-party ISP's such as TekSavvy, WITHOUT APPLYING IT TO THEIR OWN DIRECT CUSTOMERS! It's no longer even close to a level playing field; the CRTC has effectively destroyed competition in this market, with one stroke of a poisoned pen. So now I have a choice between staying with TekSavvy, enjoying their superior service and tech expertise but having to pay UBB, or going back to Bell Sympatico and putting up with arrogant jerks in customer service, and know-nothing f**ktards in 'tech support' who couldn't tell the difference between Linux the OS and Linus the Charlie Brown comic strip character. The CRTC has sold Canadians down the river with this move, and I'd like to know how much Bell paid some snivel serpents for this favourable legislation. Arrogant, whining, incompetent Bell fancies that it owns the infrastructure on which land line calls and DSL service take place. I'm sure that as far as the law is concerned they do, however in reality Canadians own the infrastructure. We've paid for it several times over with decades of tax breaks, government-enforced monopoly, public rights-of-way, putting up with crap service, etcetera. The CRTC ought to be dismantled and its functionaries jailed, and Bell ought to be nationalized. Free enterprise is one thing; government-sanctioned raping and pillaging of the population by actively suppressing competition is quite another.

    --
    'The Economy' is a giant Ponzi scheme whose most pitiable suckers are the youngest among us and the yet-unborn.
  14. Re:You WANT usage based billing by Interoperable · · Score: 4, Insightful

    That's absolutely right, if the market determines the going rate for bandwidth. Bandwidth is, after all, a finite resource; however, there is no competition and hence there are no market forces at play in this situation. That's where this whole can of worms came from in the first place. The whole industry is regulated because of the excessively high barriers to entry for new competitors. It's not going to be an ideal situation but it would be less bad if it was regulated well instead of being regulated by the CRTC.

    --
    So if this is the future...where's my jet pack?
  15. Re:Ameteur radio bandwidth. by robot256 · · Score: 2, Informative

    Amateur radio cannot replace the Internet--at least in the U.S. regulations both encryption and 1st- or 2nd-party commercial traffic are banned. So you can check your home email via unencrypted POP or browse the web casually (even with 3rd party ads), but you can't check your work email, buy anything, or technically use SSL or SSH at all. The only time "message obfuscation" of any kind permitted is when sending control signals to satellites. Amateur radios frequencies are specifically intended for experimental applications, and using it as a dedicated internet connection would constitute a fixed service. The laws could be different in Canada, of course, but I would be surprised if they were vastly different.

  16. Re:You WANT usage based billing by Heed00 · · Score: 4, Informative

    I just moved back to Canada after living the past 10 years in England -- when I first got there internet speeds, data rates, etc. were far behind what was available in Canada for a lot more money. 10 years later and I return to find that Canada seems like some sort of internet backwater with these severely limiting caps and astronomical prices -- the near monopolies have gamed the system well over the past 10 years. I paid the equivalent of $30 a month for a 10 meg down/1 meg up line with no total data cap. You would get shaped down to 3 meg download speed for 4 hours if you moved more than a couple of gigs over a 4 hour period which I found to be a fair system -- but that was it -- not protocol throttling, no monthly caps plus charges, etc. And that was the lowest tier package available -- the higher packages included 50 meg down with much more higher data movement before being temporarily shaped. And I always got my maximum line speed when it should have been available -- no doubt not everyone had perfect service, but I can only say that for myself it was a rock solid and reliable line.

    In short, Canadians have been hosed severely over the last 10 years when it comes to internet services -- and we just got more hosed.

    --
    Thought thinks itself.
  17. Re:You WANT usage based billing by NovaHorizon · · Score: 3, Informative

    There is a simple problem you run into. Usage based billing only works in the following idea.

    --------
    -company charges $x for unlimited plans because their network costs are high due to a few people using a LOT of bandwidth.
    -company switches to usage based billing. Charges less as high bandwidth users now pay what they owe vs low bandwidth uses paying the difference.
    -------

    However, this is not the reason for usage based billing in this instance.

    Instead Bell, the backbone company was forced to charge ISPs on it's backbone an "at cost" rate, meaning they couldn't charge more than it cost them to run the line. This allows the ISP to determine what pricing plan they want, including usage based to reduce overall costs.

    During this time, an ISP going to usage based billing can potentially have lower costs for other clients.

    Now, Bell is charging it's original rate, along with an extra $1.12/GB over a low 60GB limit. This artificially raises the rates of the smaller ISPs that are on Bell's backbone as they were paying all of Bell's costs for those lines to begin with, and now have to pay even more. Meaning that the ISPs were likely already at the lowest amount they could charge, and have to now pay a gigantic extra fee for simply moderate usage.

    I am short on time right now, but the quick and simple is this. Usage based billing only works when it's the company that deals directly with the customer that determines it, not the backbone. The backbone company getting to charge extra only raises rates for it's competitors.

  18. You know what? This is Canada. by twidarkling · · Score: 5, Interesting

    We're a left-leaning country. I have a great fucking idea. Nationalize bell. I was never a fan of this privatization shit. Let's get this socialist bit working again, and have the government own the lines, and then companies like Teksaavy (or however it's spelled) just pay the government maintenance rates for access, then anyone can compete, since it's a government entity without an interest in the market AND NOT DIRECTLY OFFERING SERVICES that everyone's going to. Bell charging companies for access while still selling access to individuals is pretty fucking anti-competitive. That way, if an area wants better internet, you just talk to your MP and they put it on the list of infrastructure to be improved in the area.

    I mean, fuck, taxpayers already paid for all the lines, so fuck Bell. Yes, I'm just a wee bit angry at this.

    --
    Canada: The US's more awesome sibling.
    1. Re:You know what? This is Canada. by mdielmann · · Score: 2, Insightful

      I have a great fucking idea. Nationalize bell.

      We don't need to nationalize Bell. We just need to nationalize Bell's lines. We can even contract out servicing, and perhaps even upgrading those lines, but then lease usage to whoever needs it (i.e., the ISP you contract with). This gets rid of the natural monopoly being used against competitors, and puts everyone on a level playing field.
      To be properly done, the cable companies and cell towers should be nationalized, as well, with the same rules.

      --
      Sure I'm paranoid, but am I paranoid enough?
  19. For all Americans by No.+24601 · · Score: 3, Informative

    For all Americans who think this will never happen to them, you should read this article from Reuters just this past Wednesday. Looks like the Canadian telecom industry is the role model our boys are looking to follow. But unlike what the article says, Canadians are not accepting this situation lying down. They are actively seeking out and subscribing to the new disruptive competition like Wind Mobile and Mobilicity.

  20. You're a bunch of pussies by pablo_max · · Score: 4, Funny

    Seriously, Americans and Canadians are the biggest bunch of pussies in the world. Everyday we get to read stories like this and listen to everyone complain how unfair it is and how the government is doing whatever big business wants, yet YOU DO NOTHING!
    Oh, sign this online petition. Are you kidding me? Get a fucking backbone and do something about it!
    Do you watch the news?

    France is the perfect example. The government does something the people don't want and they take to the streets in mass to force change. Meanwhile, your media skews the stories to ensure you side with the French government so as you don't get the same idea. Like always, you lap it up like good little lemmings.

    Seriously, what must happen before you stand up for yourselves?

    **disclaimer, I was arrested twice during peaceful protests, but at least I didn't sit on my ass while my government took my rights like you lazy fucks.

  21. Pass the Buck by Eightbitgnosis · · Score: 2, Interesting

    So now Canadians can sue online advertisers for damages done by usage of bandwidth?

  22. Re:You WANT usage based billing by Rockoon · · Score: 2, Informative

    The whole industry is regulated because of the excessively high barriers to entry for new competitors.

    More importantly, the industry is regulated in order to create such excessively high barriers.

    --
    "His name was James Damore."