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ExtraTorrent.cc > Articles > Canadian ISPs Explained Overage Fees

Canadian ISPs Explained Overage Fees

Canadian ISPs Explained Overage Fees

Added: Wednesday, January 12th, 2011
Category: Bit Torrent Freedom > The Right To Share
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2010, www.extrattorrent.com
Primus VP of Network Services, Matt Stein, called increased fees an economic disincentive for Internet use, because the charges levied by Bell are many times what it really costs to deliver it.


It was in May 2010 when the CRTC (Canadian Radio-television and Telecommunications Commission) allowed Bell Canada, the country’s largest telephone and telecommunications organization, to go on with their Internet traffic management practice. In other words, it was a consumption-based billing, and a growing consensus is that it had nothing in common with recovering costs from excessive usage, but rather related with depriving people of incentives to use Internet.

Recently, the CRTC approved Bell’s request to apply their consumption-based billing to Gateway Access Services users, setting a timetable of 3 months for an implementation period of the new policy. This means that smaller broadband providers can’t sell unlimited usage packages any longer. Instead, they will have to roll out monthly data caps as well.

In fact, introduction of the caps and higher rates has already begun, but they still have nothing to do with the costs really incurred by broadband providers. One of the ISP Presidents said last May that the prices are absolutely atrocious, comparing $1 for extra usage with thousands of multiples beyond what the costs really are.

Although it is true that nowadays more people use more bandwidth than they did before, mainly due to using streaming services like Netflix, the increased consumption can’t mean that they drove more cost. The chief technical officer for American broadband provider Comcast Tony Werner admitted that all of their economics depends on engineering for the peak hour.

As you know, the cost of the equipment needed for expansion of the network capacity is constantly decreasing while technology is improving. Statistics say that it would only cost $7 per household to double the bandwidth capacity. In fact, the equipment needed to provide 50Mbps is now less expensive than what was paid for the 6Mbps one.

And at the same time we can see examples like Videotron ISP, who was trying to charge a user $1,800 in overage fees for “exceeding 30GB monthly data cap”. After it turned out that the router in question had been hacked, the ISP was kind enough to lop off $300, but the entire picture is really ill-looking.

January 12th ,2011

Posted by: 

Date:  Wednesday, January 12th, 2011

Comments (4) (please add your comment »)

posted by (2011-01-12 13:40:00)
Slim33 avatarGood post SaM, its only a matter of time for everyone! Money money money

posted by (2011-01-12 17:23:43)
hoddi1 avatarWell explain this give us your money or get the H out.
That's all Bell And Rogers understand And the stupid CRTC falls for it.

posted by Blocked (2011-01-12 22:18:52)
menahunie avatarThat's what you get for allowing a monopoly to happen. Remember the "telephone" Company monopoly a while ago and they were broken up?
The ISP's are labeling their own clients "abusers" when for years they pushed for these same user's "unlimited" internet usage... Well the clients are only doing what they PAID for and were TOLD they could do. Except these ISP's refused to upgrade the networks and pocketed the BILLIONS in profits..
The major ISP's are acting exactly like the MPAA and RIAA in their business model; control the market and screw the client.
Thing is it has always been the little guy "ISP's" that will really win in the end since these major ISP's don't control or own the major internet backbone's in this country that carries the internet traffic; these ISP's only provide a service to ACCESS it..
What I see in a technology evolution in the internet future is you only need a line ( optical fiber ) to the Backbone; the equipment will be so cheap you then will be your own ISP and assigned a permanent IP from a DNS server.. You only then pay for the line and NOT THE DATA USAGE..
These ISP's see this and like the RIAA and MPAA scares the crap out of them since they will no-longer control who has access to the internet..

posted by (2011-01-13 23:52:21)
catinthehat avatarI couldnt say it any better menahunie!

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