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Internet Downloading Costs To Rise In Canada
An anonymous reader writes "According to CBC News, 'Surfing and downloading from the internet is about to get more expensive for many Canadians as internet companies Shaw and Primus have announced plans to impose new fees and caps on internet usage. Over the past year, the CRTC, Canada's communication regulator, let Bell and Rogers start charging extra for customers who download a lot of data. ... Primus and Shaw have said they will begin passing on higher fees to their customers beginning Feb. 1. Primus, for example, rents bandwidth on Bell's networks and said Bell is inflating the costs for everyone, including them. 'It's an economic disincentive for internet use,' said Matt Stein, vice-president of network services for Primus. 'It's not meant to recover costs. In fact these charges that Bell has levied are many, many, many times what it costs to actually deliver it.'"
The cap is pretty much universally 40GB with overage fees around CAD$3.00/GB. Some providers cap the overage fees and cut off service (possibly illegal for VoIP providers) whilst others don't and just rack up the charges. The actual tariff has not yet been finalized but that's the standard figure being pushed by providers who have started billing already. I'm with Acanac who hasn't started billing, has no caps, has declared that they have no intention to add them and is fighting Bell both at the commission and in the media.
This is a direct result of Netflix hitting the Canadian market a few months ago as it competes directly with Rogers and Bell, the two largest ISPs who happen to also be the two largest cable and satellite providers. Netflix HD movies take around 4GB each and a couple hours of TV programs is about the same. If you are in the habit of watching two hours of TV a night then you'll easily go over 100GB in a month. Bell wants to blame this on piracy but the fact of the matter is that this is perfectly legal and normal usage.
Internet connections used to be faster and cheaper and the providers were rolling in cash. We've seen price hikes, throttling, and severe curtailing of progress. The current government is clueless on the portfolio but wants the market to sort it out- the only problem is that we don't have one and the regulatory commission is stacked with former Bell/Rogers execs with active financial interests in the company. It's a blatant conflict of interest but the conservative government claims they're powerless.
Yeah, we basically can only choose between Bell (phone) and Rogers (cable). The current regulation creates an illusion of competition by forcing Bell (and possibly Rogers as of late, I'm not sure what happened there) to provide wholesale access in some way to third parties. However, the CRTC isn't forcing Bell to offer access to the highest speeds of service, isn't preventing them from throttling the BitTorrent (et al) traffic from customers of third parties (e.g. TekSavvy), and is now allowing them to impose 60GB bandwidth caps on third party customers with big fees for going over. Basically, every possible differentiator for the third parties is being gradually eliminated by Bell. Meanwhile, Rogers made the news recently for trying so hard to throttle torrents that they're now throttling download traffic that is sometimes not even related to BitTorrent. We're not exactly third world, but our regulators are certainly failing us, and most people are too ignorant to make a fuss about it.
You can't put Israel into the comparison. Their economy is HUGELY subsidized by the U.S.