Digital Home Thoughts - News & Reviews for the Digital Home

"As confirmed by Industry Minister Tony Clement on Twitter, the government plans to overturn the recent CRTC decision that effectively imposed usage-based internet billing if the agency doesn't back down and "go back to the drawing board." Citing a senior government official, The Toronto Star further reports that the reversal could come as early as next week."

Since the Canadian government's announcement about its opposal to the recent UBB implementation, the CRTC has issued a statement saying that they have delayed the enforcement date by 60 days while it reviews the decision. Will the brouhaha quiet down in 60 days? Will the CRTC reverse its decision? Will any changes by made to the current structure for UBB? It is hard to say, since by the wording of the CRTC statement, they seem adamant that their ruling is the correct one. Throughout the past few weeks that the Canadian UBB issue has been covered in the media I have seen people and arguments for both sides, each with some valid points. From all of that, I have taken away two main thoughts.

First, Canadians seem quite passionate about their access to the Internet. The threat of potential high costs for Internet tickled a nerve among people and if you were to believe the media,, there were thousands, if not millions, willing to stand up and protest the changes. We do live in a digital age, and being cut off, or the threat of increased rates can significantly affect how we do business or even handle our personal lives. I also think that the recent events in Egypt where they went through an Internet blackout, may have scared more Canadians into action.

Second, the management of DSL wholesale and Bell is a complex issue. Bell Canada is a privately owned company, but has benefitted from having had a monopoly and being a Crown corporation. Does the government have the right to dictate what private business does? Does its subidies to companies like Bell mean that Bell is controlled by politicians, not business-people? How much help should the government give small business and ensure competition?

With the increasing importance of the Internet in our daily lives, I believe that this issue will continue to plague Canadians (including me!) for years to come. Oddly enough, it reminds me of the days back when dial-up was much more common, and there were dozens if not hundreds of ISPs, each in firece competition with each other. How the world has changed.

"Charlie Angus, the NDP's digital affairs critic, said the telecommunications regulator's decision to allow usage-based internet billing won't just affect the so-called bandwidth hogs but could hit many Canadians financially."

Last year, the CRTC decided to approve Bell's proposal for Usage Based Billing for its wholesale customers. That decision also outlined what costs Bell could charge for customers who went above certain thresholds for usage. Independent ISPs cried foul. Some Internet users expressed outrage. Now it looks like politicians are getting into the foray. Personally, while I can understand the idea of UBB, I disagree with have it is going to be implemented. Bell is going to be able to charge on a per user basis instead of in aggregate to its wholesale customers. The charges are also extremely high.

The rates will punish those who make most use of the Internet and only serve to guarantee higher profit margins for what is in effect, a government enforced oligopoly. Sure, not everyone needs a terrabyte of data transfer (at least at present) but with people watching their meters, ideas like YouTube and Hulu would likely never have taken off. People might ignore updating their OS or programs because that uses up data. If you were stuck with a data transfer cap, what would you be willing to sacrifice?

"Metered internet usage is on the way, with the CRTC handing down its final decision on how wholesale customers can be billed by large network owners. The federal regulator on Thursday gave Bell Canada the approval to implement so-called usage-based billing to wholesale customers — usually smaller internet service providers that rent portions of its network — within 90 days."

I have seen reports that suggest that Canadians are among those countries that pay the most for their Internet access. Looking at what prices can be had elsewhere, I would tend to agree. The CRTC's most recent ruling though, leads me to think that prices are either going to increase, or Canadians will just have to settle with having limited Internet connections where they have to watch everything they do. I am not going to argue that Canadians should see the same prices as those posted in Japan or several nations in the EU, but I cannot see how the recent decision for Usage Based Billing will help foster a digital nation intent on innovation. People will be afraid of testing out new services available on the Internet, assuming they are even offered here (How long did it take for Netflix to offer streaming in Canada? And with what selection?) leading to a nation of people behind the times. It seems to have turned more towards profit over vision.