Canadian ISPs Set Bandwidth Caps and Increased FeesAdded: Wednesday, January 12th, 2011
Category: Bit Torrent Freedom > The Right To Share
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All the members of the digital community residing in Canada, whether they are into downloading Linux ISOs, streaming video from Netflix or playing online games, face an issue of big concern. Canadian service providers began initiating bandwidth caps and introducing higher fees.
It took broadband providers only 3 months from the day the CRTC ruled in favor of Bell to announce increase in fees. A re-seller of Bell, Primus, and Rogers were the first ones to announce their rate hikes. Moreover, they didn’t even take trouble to announce the new fees before billing unsuspecting consumers up to $100 extra fee.
It seems like Primus is quite unhappy about the issue, considering that it was Bell that made them to charge more. Primus admits that it is just an economic disincentive for Internet use, which is not meant to recover costs. Indeed, the charges Bell has levied are many times what it really costs to deliver it.
Industry observers pointed out that the increase in fees for Primus is a clear sign that broadband competition in the country is virtually non-existent. A number of major Internet providers have so much power that they are able to dictate price to smaller organizations. In fact, it’s true – broadband competition in the country is quite grim. Major part of the Canadians chooses between Bell, Rogers/Shaw, and Telus/AT&T. Sometimes, there are only 2 ISPs existing in the marketplace, while none of the largest companies is willing to enter the last mile market. The latter is still kept on dial-up.
This is one of the reasons why users are just not able to go on to a competing provider when rates go way too high. But the main question for consumers is, why now? It is unclear what exactly forced the ISPs to start a race to roll out bandwidth caps. Critics point to the arrival of Netflix, since some broadband providers, like Rogers, have been attempting to introduce their own online video streaming services. Some are arguing that such rate hikes were a means to push Netflix back out of Canada, which raises questions about competition in markets connected to online services and, more precisely, network neutrality.
As the result, attempts to innovate on the Internet within the country may get much more difficult, thus bringing us to conclusion that innovations are better suited for users in countries like China where broadband competition is more real.
January 12th ,2011Posted by:
Wednesday, January 12th, 2011
|posted by (2011-01-12 13:41:37)|
|Canada needs more ISP's!|
|posted by (2011-01-12 17:20:46)|
|Well there go's the internet in Canada.|
|posted by (2011-01-13 06:33:50)|
|damn! and it was just getting good.|
|posted by (2011-01-13 17:21:46)|
|im not worried because i am one of the few who get the "first 6 months for $20" promo, then when its over i disconnect for a month and do it again. but yeah the caps suck because mine is only 50gb and ive got a 15mb connection. ive used well over a couple terabytes in downloading so far|
|if you pay for unlimited service you shoudl get unlimited service.|
i'm glad that where i live i can download 24hrs a day without question if i want to.
after all, i pay for a service so i am entitled to use it, regardless of how much data comes to me, the service is unlimited, so that means unlimited.
its especially bad since they are providing on demand movies and other services over your internet, so why does the customer have to suffer or pay more for a service they are already paying for? isnt at&t broadband using their adsl for their cable tv programming?
the whole idea of getting internet and getting these highspeed connections was to be able to do whatever you wanted, whenever you wanted for a flat fee.
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