Canada: Wholesale Usage Fees Delayed

  

The Canadian regulator, CRTC, decided few weeks ago to allow wholesale carriers to use metered (usage based) billing (see "CRTC [Canada] Approves Usage Based Billing to Bell Canada" - here). The decision was quickly translated into usage-based charging by Canadian ISPs (see "Canadian ISPs Charge DSL Subscribers for Over-Consumption" - here).

Now, the chairman of the CRTC, Konrad von Finckenstein, Q.C. (picture), announced that the CRTC has decided to "Delay the implementation of usage-based billing for wholesale customers by at least 60 days and Launch, of our own motion, a review of our decision to verify that:

1. it protects consumers
2. those who use the Internet heavily pay for their excess use, and
3. Small ISPs retain maximum flexibility and continue to be a key source of innovation in the industry."

See "Statement from the Chairman of the CRTC on usage-based billing" - here.

Primus, for example, announced that (here) "In light of the CRTC’s recent announcement to review their decision and delay the implementation of Usage Based Billing, Primus will not implement usage caps on our internet service for at least 60 days, pending final direction from the CRTC".

I can’t see any change to Bell Internet "Get answers to your Internet usage questions" page (here).

Nevertheless, the CRTC message emphasizes that "We are convinced that Internet services are no different than other public utilities, and the vast majority of Internet users should not be asked to subsidize a small minority of heavy users. For us, it is a question of fundamental fairness. Let me restate: ordinary users should not be forced to subsidize heavy users "

Canadian ISPs Charge DSL Subscribers for Over-Consumption

  

Usage based billing was recently a hot topic in the wireless space (for example - it makes AT&T happy - here), and for a blink of a second in the US cable market.

Now, after the Canadian regulator approval (see "CRTC [Canada] Approves Usage Based Billing to Bell Canada" - here) we can see it being implemented by retail ISPs on the DSL service as well.

Bell Internet explains (here - Bell's "Tracker" utility pictured) that "If you exceed your usage allowance, the excess usage will be charged at the rate specified in your Bell Internet plan. There is a maximum usage overage charge of $60/month for usage up to 300 GB. In addition, an extreme usage charge of $1.00/GB applies for usage exceeding 300 GB per month .. Although the extreme usage charge will be introduced to all customers, 99% of customers do not exceed the extreme threshold of 300 GB per month. In fact, less than 2% of customers exceed 100 GB per month and an average customer uses approximately 11.5 GB per month".

Primus Canada introduced the following policy (here - unlike what the video below says) - "Commencing February 2011, your existing High Speed Internet plan will now have 25GB (gigabytes) of monthly usage included. Additional usage up to 300GB will be charged at $2.00/GB to a maximum of $60.00/month. Usage in excess of 300GB per month will be charged an additional $1.10/GB".

Shaw - see video below