Canadian Broadband Provider Planned Friendly Data AllotmentsAdded: Tuesday, May 3rd, 2011
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Representative for one of the Canadian ISPs, Telus, said that their subscribers will receive plenty of warning along with plenty of opportunities to shift to more expensive data plans after the ISP rolls out usage-based billing in the near future.
Telus wasn’t the first Canadian broadband provider to introduce data allotments later in 2011. However, the company promised it would be really customer friendly. For example, the subscribers will not be punished for the first time they go over. However, they would get plenty of warning and notice that they are going over, and be offered the options of choosing some other plans.
The subscribers choosing the $35 per month broadband package will face a data allotment of just 75GB. Telus comments that it would only be fair that users pay for how much Internet capacity they used.
Actually, this claim has already been debunked by well-known Bell Canada, whose CEO George Cope announced during second quarter conference call a year ago that nearly all the increase in average revenue per user was caused by usage-based billing, because the demand for Internet use rocketed thanks to the use of video services. In fact, the revenue was not necessary to offset the increased costs connected with the increase in data usage, as revenue per user increased. So, 3 months later Bell Canada had to admit that usage-based billing revenue increased by an amazing 83% within a year. As Bell Canada CEO has also explained shareholders, usage-based billing was a right tool to monetize bandwidth.
In other words, the trouble with usage-based billing and data allotments is that it would only create economic disincentives to use bandwidth and online services in the same way as increasing the price of gasoline would discourage the use of a car. In addition, thus far nobody has been able to prove that overage fees set by a number of ISPs have anything to do with the real costs incurred. In other words, no ISP has proved that it actually costs it $1 if the subscriber exceeds their data allotment by 5GB.
In Canada, many have already realized that data allotments were just a product of a lack of real provider competition. So, as long as that’s true, the Internet service providers will invent new ways to monetize bandwidth at the expense of their subscribers. All we left to do is hope that a measly 75GB data allotment will never become an industry norm.
May 3rd,2011Posted by:
Tuesday, May 3rd, 2011
|He failed to mention that there's a $47/month account with 125GB and a $63/month account with 250GB. That's not too shabby (VERY similar pricing to costs from MY ISP in Australia [$60/M for 250GB]) (Canada, USA, and Australia are within a few cents of each other at the moment.)|
The only REAL issue is that 250GB is the highest bandwidth account available ... I pay $104 and MY account has 500GB/month, and I usually come close to Maxing it (avg 483GB over the last 5 months).
|I can't say I would fall into the category of someone who uses the internet less or is more concience of how much data I have flowing one way or the other, I simply end up paying more. @5GB included and I usually end up with just under(barely) 300GB per month sometimes slightly over, so with the new fees my bill is $30 extra each month.|
I could get unlimited via a local Cable company but it's slower and goes down nearly everytime there's a storm
|@1 max? what happens if you reach the Max limit?|
Bell has no set max, but I think once you go over 300GB they charge you an Over the limit per GB amount without limit
|good thing not a limit in the us where i am because use almost 1 tb a month sometimes|
|posted by (2011-05-05 13:28:22)|
LOL! $47 for 250GB? Is that supposed to make the situation better? It doesn't. Not only is that an huge rip off compared to other connected countries in Europe and the united states, but they money they do take they don't even invest in their network. Rogers and Bell have been 5 years behind their counterparts in the united states simply because they can. They provide outdated service and charge you more for it, and people like you are ok with that.
And the funny thing is, even if you do go and and are willing to pay the overage, you still don't get what you pay for because they will throttle you connection once you go over. So now you are pay for every GB over your monthly allotment, and instead of getting the high speed connection you paid for, your downloads are throttle to 3.16kb and turned on and off in an attempt to disrupt the connection. It been years since fibre optic was released in the states, out next "innovation" is a new monthly allotment model! Yay!
|@Tparsons5150 If you are a fellow Newfoundlander like your picture suggests, then you are with BellAliant and not Bell. It is true that all speed packages with BellAliant have no limit but they have a fairly restricted upload limit. Bell on the other hand does in fact offer usage based billing to it's customers.||
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