CRTC delays usage cap on small Internet providers

OTTAWA—CRTC chair Konrad von Finckenstein says the commission will review its controversial decision to impose a usage cap on small Internet providers.

The decision would ultimately filter down to consumers, whose negative reaction was swift across the country.

“The commission has decided to delay the implementation of usage-based billing for wholesale customers by at least 60 days,” Von Finckenstein told the Commons industry committee Thursday.

He told MPs he made this decision even before the Conservative government said if the Canadian Radio-television and Telecommunications Commission did not reverse the decision it would.

Von Finckenstein said the small providers are crucial to a competitive market.

He said the review will determine whether the decision protects consumers and that heavy users pay more.

“The ordinary users should not subsidize the heavy users,” the CRTC chair said.

Von Finckenstein argued that usage-based billing is a legitimate principle for pricing Internet services.

“We are convinced that Internet services are no different than other public utilities,” he said.

Von Finckenstein explained that the majority of Internet residential consumers already have caps.

The proposed change asked for by Bell would also put a cap on the small providers who buy up bandwidth from the major providers like Bell and they in turn offer contracts to heavy users.

Von Finckenstein said these small providers service only about 550,000 subscribers or 6 per cent of the 9 million subscribers across the country.

Von Finckenstein said most Internet users fall well within the caps currently set by the large distributors “and would not be charged more unless their monthly usage increased dramatically.”

He noted only a small percentage of consumers are heavy users, citing statistics from Bell Canada showing less than 14 per cent are responsible for more than 83 per cent of Internet traffic.

Industry Minister Tony Clement said he was pleased to hear the CTRC is reviewing its decision but added regardless of the outcome of that review the ruling will not be implemented.

Clement said the good news is that Internet billing will not change March 1.