Stricter download limits on the way

Because of a decision by the Canadian Radio Telecommunications Commission (CRTC) last week, “usage-based billing," (UBB) or metered Internet usage, is coming to independent Canadian Internet Service providers (ISPs) next month.

While it does not affect Bell and Rogers customers, it is forcing the independents who rely on Bell and Rogers networks, to revise their data plans. For example, Ontario-based TekSavvy, which operates through Bell's network, recently wrote to users of its "High Speed Internet Premium" plan they can no longer download up to 200 gigabytes of data per month. The new cap is just 25 gigabytes.

Not only does this affect the amount of files downloaded – especially media, such as music, photos, video and computer games – but streaming services, as well. Netflix, for example, says one hour of standard definition video is the equivalent of 1 gigabyte – and more for higher-definition video.

If you think you're going to go over, you can purchase "insurance" ($4.75 for 40GB in Ontario), says TekSavvy, but unused data can't be forwarded onto the following month. Alternatively, customers can also purchase "usage vault" plans in advance for $1.90 per Gigabyte (for up to 300GB per month).

Who's affected?

In an email to Moneyville, Bell said decisions only affect its wholesale customers who provide Internet service by piggybacking on Bell's network. The email said it’s only fair that these customers adopt the same usage-based billing that Bell has.

Bell says the March 1 changes for indie ISPs will only affect Internet users who download large amounts of data. Bell says they "consume on average more than twice the bandwidth of Bell's own Internet customers."

Bell says the best way to account for this bandwidth is to charge customers for what they use.

Bell says that since its own Internet customers have been billed on the basis of usage since late 2006, the same rules should apply to re-sellers."[W]holesalers have been able to offer unlimited Internet plans, driving network usage up dramatically, putting a heavy strain on our overall network and potentially impacting service to all customers."

The change will also affect Rogers, but will likely impact fewer customers.

"While Rogers also has a wholesale business, [UBB] will not impact the vast majority of our customers," says Kathy Murphy, senior director of public relations for Rogers Communications, Inc., in a telephone interview on Monday.

That said, Murphy says they intend to apply UBB to its wholesalers in July. "Again, this is a very small percentage of our overall business," confirms Murphy. "And at this stage there is no plan to change our pricing or data allowance for our own [Rogers Internet] customers."

Could UBB stifle competition?

Chatham, Ontario-based TekSavvy Solutions Inc. believes UBB "imposes limits on the ability to best serve its customers and provide an effective competitive alternative to the telcos like Bell, which dominate the Internet service market," says Rocky Gaudrault, CEO for TekSavvy in a release on its website.

TekSavvy asked the CRTC for a discount of 50 per cent, but the approved discount remains at 15 percent. "So, we are essentially stuck with pricing that serves Bell’s interests, but no one else's," according to Gaudrault.

Yesterday, Industry Minister Tony Clement says UBB will be "studied carefully" to ensure fair competition in the Canadian ISP space.

What to do?

An online campaign is using Twitter, Facebook and websites, calling for your help to "Stop the Meter," an initiative by OpenMedia.ca to stop UBB in Canada. OpenMedia.ca says they now have more than 170,000 online signatures for their petition. On Tuesday, the Liberal Party of Canada issued a statement, saying they're also "standing up for Canadian consumers by opposing the decision by the Canadian Radio and Telecommunications Commission (CRTC) on usage-based billing." Canadians can add their name to a petition at the Liberal Party's UBB site (lpc.ca/ubb).

"We do not agree with the CRTC's decision on usage-based billing, and we will bring the fight for an open and innovative internet environment to Parliament," said Liberal Industry, Science and Technology Critic Marc Garneau, in the release.

ISPs are encouraging customers to choose the right plan to best suit their needs and budget.

"You first need to figure out what makes sense for you based on your Internet usage patterns," says Rogers' Murphy, who references their online calculator. This tool breaks down the ISP's various plans and data allowances.

For example, those who simply use the Internet for information, Facebook, online shopping and reading email don't necessarily need an overly fast Internet connection, nor do they need more than a couple of gigabytes of data per month. But digital packrats who download a lot of files and perhaps enjoy streaming HD video might opt for more than 100 gigabytes per month.

ISPs like Bell and Rogers both deliver notifications to customers to help manage their data usage, including alerts when nearing capacity (and again at 100 per cent), as well as a password-protected website in which to track usage. Customers will be charged for going over the allotted data. With Bell's Fibe 6 Internet package, for example, users get 25 gigabytes of data for $31.95/month; those who exceed that amount will be charged $2 per additional gigabyte (capped at $60).