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Stop Usage Based Billing – comment to the CRTC

Posted by Bob Jonkman on December 9th, 2010

Stop Usage Based Billing logo

Today is the deadline for submitting comments to the CRTC on the proposed tariff increases for Usage Based Billing. These are the comments I submitted:

I am opposed to the current Usage Based Billing proposal.

 

The cost of Telecom in Canada is already among of the highest in the world. Allowing Usage Based Billing will only increase that cost for both consumers and business, especially the third-party Internet providers. Canadian-based business is already looking for foreign ownership for the telecom sector; don’t price those Canadian businesses out of the market by increasing the rates for telecom services.

 

I understand that the carriers feel the need to increase the capacity of their infrastructure, but they have provided no evidence of the current capacities or bandwidth usage, making me wonder if these extra charges are justified. I do believe that billing based on usage (akin to electricity or water use) is a fair way to charge for Internet use, but only if it is the only charge. Carriers must not charge for bandwidth AND set bandwidth caps with overage fees. It cost no more to deliver the first gigabyte in a billing cycle than it costs to deliver the 60th.

 

Also, there must be a clear separation of bandwidth providers and content providers. To the consumer, it certainly seems like the carriers are raising the cost of providing streaming media such as NetFlix, while at the same time introducing such services themselves. It certainly gives the perception of anti-competitive billing, trying to force NetFlix out of the market by making it too expensive.

 

–Bob Jonkman
6 James St.
Elmira ON Canada
+1-519-635-9413

(CRTC Comment Reference number: 139217 )

Feel free to use any of these comments in your own submission!

 
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