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Canadians: Meet Your New, Confusing And Overpriced Broadband
Smaller Carriers Like TekSavvy Implement Mandatory New Pricing
by Karl Bode Tuesday 01-Feb-2011 tags: prices · business · bandwidth · cable · consumers · Bell Sympatico · Shaw · TekSavvy DSL
Tipped by Jon See Profile
We've been covering at length the decision of Canadian regulatory agency the CRTC to give the green light to usage-based broadband billing (aka low caps and high per byte overages). As any Independent Canadian ISP will gladly tell you, the move was the brain child of incumbent Canadian ISPs, eager to cash in on Internet video by charging per byte rates entirely detached from reality, while driving smaller ISPs out of business. Several readers have sent in a well-rounded report from Ars Technica, which covers the impact among smaller ISPs. Specifically, they examine TekSavvy, which is being forced by law to lower their caps from 200GB to 25GB starting March 1:

Click for full size
"Like our customers, and Canadian internet users everywhere, we are not happy with this new development," wrote the Ontario-based indie ISP TekSavvy in a recent e-mail message to its subscribers. . .Starting on March 1, Ontario TekSavvy members who subscribed to the 5Mbps plan have a new usage cap of 25GB, "substantially down from the 200GB or unlimited deals TekSavvy was able to offer before the CRTC's decision to impose usage based billing," the message added.

Though Ars notes there's some "good news":

TekSavvy users can now buy "insurance," defined as "a recurring subscription fee that provides you with additional monthly usage." For Ontario it's $4.75 for 40GB of additional data (sorry, but the unused data can't be forwarded to the next month). There are also "usage vault" plans—payments made in advance for extra data. Consumers can buy vault data for $1.90/GB up to 300GB in any month. Where once TekSavvy consumers could purchase High Speed Internet Premium at a monthly base usage of 200GB for $31.95 a month, now they can get about half of that data (if they buy two units of insurance) at $41.45 a month.

Confusing pricing, expensive per-byte overages, and an inability for smaller independent ISPs to offer a service that's superior to say -- Bell Canada's own throttled and capped services. This was all by the design of Canada's largest ISPs, clearly demonstrates a total failure of government to stand up to these companies, and is something that's going to set Canadian broadband and technological innovation back for decades while costing Canadian consumers unnecessary billions. Other than that, it's a smashing idea from the folks at Bell Canada, Rogers, Shaw and the CRTC.

Canadian consumers are still fighting the shift, with a group by the name of Open Media leading the charge and looking for petition signatures. If you're interested in more detail, you can visit any one of our Canadian ISP forums and have a conversation with disgusted Canadian consumers who are struggling to understand how this happened -- and what exactly they can do about it.

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Duramax08
Win8 sucks
Premium
join:2008-08-03
San Antonio, TX

"Insurance" on internet?!

You got to be kidding

milnoc

join:2001-03-05
H3B
kudos:1

Re: "Insurance" on internet?!

It's for your own "protection." You wouldn't want anything to happen to your precious Internet, do you?
b10010011
Whats a Posting tag?

join:2004-09-07
Bellingham, WA
Reviews:
·Comcast Formerl..
Queue stereotypical mobster voice...

Think of it as "insurance". You want to be "protected", just in case anything "unfortunate" happens...

Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3
Speaking of insurance, what will happen when the inevitable open hotspot mooching and/or WEP hacking takes place? If a 25 GB/month customer suddenly begins downloading terabytes at a time, will their ISP put a hold on their line, or expect the customer to sell their house to make the payment?

pfak
Premium
join:2002-12-29
Vancouver, BC

Re: "Insurance" on internet?!

said by Thaler:

Speaking of insurance, what will happen when the inevitable open hotspot mooching and/or WEP hacking takes place? If a 25 GB/month customer suddenly begins downloading terabytes at a time, will their ISP put a hold on their line, or expect the customer to sell their house to make the payment?

Expect the customer to sell their house to make the payment.

»Hacked Router Costs Videotron User $1,800 In Overages
vintagewino

join:2003-07-22
Grimsby, ON
kudos:2
Exactly, as Pfak said. Up to the subscriber to keep the "undesirables" out. The incumbents will nail you to the wall, and it's your problem.

Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3

Re: "Insurance" on internet?!

Yes, but to what extent? I know open hotspots are a hard sell to defend. However, one can't say customers with WEP didn't attempt to lock their network down. True, tech savvy people keep up to date on the latest compromised WiFi encryption(s)...but what about the average consumer?

(edit) Nevermind. Looked at the article and it appears she was using WEP and still charged $1k+. Damn!
a1_Andy
Premium
join:2005-12-29
Oshawa, ON

Re: "Insurance" on internet?!

Bell ships all their customers wep modems......

Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3

Re: "Insurance" on internet?!

WEP's been a very flimsy boat lately. Well, it has been for a long time, but lately we've been seeing WEP-bypassing in the news at large. I think there are even tools out there today that make breaking WEP encryption about the same point-and-click difficulty as logging into Facebook.

Kommie
Premium
join:2003-05-13
united state
kudos:2

1 edit

Vote Green Canada!

Canada you need some Anti-Corporotists's in your parliament!

Mashiki
Balking The Enemy's Plans

join:2002-02-04
Woodstock, ON
kudos:1
Reviews:
·Rogers Hi-Speed
·Bright House
·TekSavvy Cable

Re: Vote Green Canada!

said by Kommie:

Canada you need some Anti-Corporotists's in your parliament!

haha no. Greens in Canada are hyper-leftists. They're effectively a 'dead' party here, even more so than the NDP.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: Vote Green Canada!

Except I don't think the Greens have even come out against UBB. Where are they on this issue?

Mashiki
Balking The Enemy's Plans

join:2002-02-04
Woodstock, ON
kudos:1
Reviews:
·Rogers Hi-Speed
·Bright House
·TekSavvy Cable

Re: Vote Green Canada!

said by sonicmerlin:

Except I don't think the Greens have even come out against UBB. Where are they on this issue?

No idea to be honest. We had a forum poster in Canchat that was a running member for parliament under the green party tag, last I heard he went to the liberals. Greens in Canada are directionless, with a backwards policy against industrialization, and support of cost-prohibitive power generation. Sorry, we get screwed enough as it is, on everything else to be taking it on the chin all the time.

heat84
Bit Torrent Apologist

join:2004-03-11
Fort Lauderdale, FL

Get primitive! Its the only way.

Break out the pitch forks and torches and lynch the corporate bastards!
--
Bit Torrent is my DVR.
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

Re: Get primitive! Its the only way.

said by heat84:

Break out the pitch forks and torches and lynch the corporate bastards!

Except it's not the "corporate bastards" who mandated the caps, it's the Canadian government.

This is exactly the sort of thing one should expect when the government is given broad powers to regulate ISPs.

DKS
Damn Kidney Stones
Premium,ExMod 2002
join:2001-03-22
Owen Sound, ON
kudos:2
Reviews:
·Bell Sympatico

Re: Get primitive! Its the only way.

said by dynodb:

said by heat84:

Break out the pitch forks and torches and lynch the corporate bastards!

Except it's not the "corporate bastards" who mandated the caps, it's the Canadian government.

This is exactly the sort of thing one should expect when the government is given broad powers to regulate ISPs.

No, it's not. The CRTC is a regulatory authority, not government. They are charged with developing and implementing telecommunications policy. In this case, they responded to a request for UBB from the major providers. The government can review their decision, however.
--
Need-based health care not greed-based health care.

Gone
Premium
join:2011-01-24
Fort Erie, ON
kudos:3
Reviews:
·Start Communicat..

Re: Get primitive! Its the only way.

said by DKS:

The government can review their decision, however.

... and it very well looks like they are, in fact, reviewing the decision.

»www.theglobeandmail.com/news/tec···1889321/

This is where things could get very interesting.

trainwreck6

join:2010-09-21
off track
said by DKS:

said by dynodb:

said by heat84:

Break out the pitch forks and torches and lynch the corporate bastards!

Except it's not the "corporate bastards" who mandated the caps, it's the Canadian government.

This is exactly the sort of thing one should expect when the government is given broad powers to regulate ISPs.

No, it's not. The CRTC is a regulatory authority, not government. They are charged with developing and implementing telecommunications policy. In this case, they responded to a request for UBB from the major providers. The government can review their decision, however.

It's time for us to get Egyptian.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Re: Get primitive! Its the only way.

said by trainwreck6:

It's time for us to get Egyptian.

LOL, the Egyptians are rioting because 70% of their people barely have enough to eat and the police spend more time abusing the populace than protecting it. They aren't rioting over Internet fees. And neither will Canadians. It is too inconsequential. When a majority of Canadians are sleeping in shacks and starving, then maybe you will see rioting in Toronto. But not before then.

DKS
Damn Kidney Stones
Premium,ExMod 2002
join:2001-03-22
Owen Sound, ON
kudos:2
Reviews:
·Bell Sympatico
said by trainwreck6:

It's time for us to get Egyptian.

Go ahead. It's too damn cold around here.
--
Need-based health care not greed-based health care.

Brownbay
Premium
join:2005-03-13
North York, ON
@DKS,

You make it seem as though the CRTC is unbiased and uninfluenced by the government... that's definitely not the case.

Most here might now know that the CRTC is stacked with ex-telecommunication executives.

DKS
Damn Kidney Stones
Premium,ExMod 2002
join:2001-03-22
Owen Sound, ON
kudos:2
Reviews:
·Bell Sympatico

Re: Get primitive! Its the only way.

said by Brownbay:

@DKS,

You make it seem as though the CRTC is unbiased and uninfluenced by the government... that's definitely not the case.

It is not, conspiracy theories and ignorant comments by unknowing people aside. It operates at arms length from the government.

Most here might now know that the CRTC is stacked with ex-telecommunication executives.

And that means? You apparently have never heard of Conflict of Interest laws in Canada.
--
Need-based health care not greed-based health care.

Brownbay
Premium
join:2005-03-13
North York, ON

Re: Get primitive! Its the only way.

Right. Conflict of Interest laws...

That's why we're having UBB come into effect March 1st.

There should not be a single ex-telecommunications employee with a seat on that commission. If anything, it should be staffed with policy experts who then consult a 3rd party information sources to vet facts submitted by parties in a dispute.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Re: Get primitive! Its the only way.

said by Brownbay:

There should not be a single ex-telecommunications employee with a seat on that commission. If anything, it should be staffed with policy experts who then consult a 3rd party information sources to vet facts submitted by parties in a dispute.

And where do you think you get telecommunications experts that have never worked for or contracted for a telecomm or cable company or a telecomm hardware manufacturer? If you can actually find a couple, chances are they really aren't experts, but mere poseurs, or lawyer policy experts which is even worse.

Van
Premium
join:2009-07-08
New Orleans, LA
said by dynodb:

This is exactly the sort of thing one should expect when the government is given broad powers to regulate ISPs.

Yes, I am sure the Internet companies are OUTRAGED at this plan

The big, bad government is completely screwing the ISP's in Canada

The idea of AT&T, Verizon, and others have 100% ability to do whatever, whenever, however should scare everyone

Me and others wanting the government to put in regulations to help consumers is NOT wanting "complete government overhaul" or other laughable over-exaggerations that certain people cry about 24/7 all the while ignoring the actual regulations being offered
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

1 edit
said by dynodb:

said by heat84:

Break out the pitch forks and torches and lynch the corporate bastards!

Except it's not the "corporate bastards" who mandated the caps, it's the Canadian government.

This is exactly the sort of thing one should expect when the government is given broad powers to regulate ISPs.

If you eliminated the CRTC and all regulatory agencies, what would prevent Bell et al from doing this in the first place?

The government didn't "mandate caps". Why don't you learn something about the situation before spouting your rhetoric?

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4
said by dynodb:

said by heat84:

Break out the pitch forks and torches and lynch the corporate bastards!

Except it's not the "corporate bastards" who mandated the caps, it's the Canadian government.

And who do you think bought the government? yes! BELL!
--
The shortest distance between 2 points adds 1.5 stars to T. want $25? solve »coord.info/GC20A37 for me

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
said by dynodb:

Except it's not the "corporate bastards" who mandated the caps, it's the Canadian government.

And who do you think was pulling the strings there? Consumers? Ha, ya, right. Just like here, in the USA....
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
nanaki333

join:2010-08-11
Chantilly, VA

rioting breaks out in canada

news at 10

MSauk
MSauk
Premium
join:2002-01-17
Sandy, UT

Re: rioting breaks out in canada

Wow, that speed/price/usage is really bad. What is this, 1999?
--
801 Images
vintagewino

join:2003-07-22
Grimsby, ON
kudos:2

Re: rioting breaks out in canada

duplicate - removed
vintagewino

join:2003-07-22
Grimsby, ON
kudos:2
Reviews:
·magicjack.com
·TekSavvy DSL
Unless things change at the 11th hour, that's what it will be. Oh, and don't forget the 13% Harmonized Sales tax on top.

Make certain your regulatory bodies don't stoop this low.

Oh, according to speedtest.net, the US has better speeds than we do, as well.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5
said by nanaki333:

rioting breaks out in canada
news at 10

Maybe if the gov't banned hockey; but over Internet prices; no way.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: rioting breaks out in canada

I don't think you understand the importance of the internet in many people's lives. It greatly affects their daily level of happiness by assisting their education, entertainment, and social needs.

Patriot

@comcast.net

Maybe its time Canada has a revolution

Really, in this day and age what is the difference between these low caps and overages and what Egypt is doing. This is just the pig of censorship with some lipstick slapped on. I think its time that Canadians march into there parliament and trough out there representatives. In a representative democracy the representatives are responsible for carrying out the will of its constituency. The Canadian government is doing the complete opposite. When your government starts to only be concerned about the share holders of is largest company's over the will and protection of the people. Its time to over-though said government. Government should fear its people and I think it is time for Canadians to put a little fear into its government.
Network Guy
Premium
join:2000-08-25
New York

I thought I wanted to live in Canada

.. until now.

Then again, there's a reason why their dollar is still worthless compared to the US dollar.

So stupid..

See 22 replies to this post
SnakeSkin

join:2007-08-17
Scarborough, ON

If you have a "login only" account it's most confusing

Nothing has even been stated for the existing "login only" accounts. I suppose you just "fly by the seat of your pants" and find out when you get your amended bill. You could get a bill for millions or even billions of dollars and not even know it!!

See 6 replies to this post
gamafarr

join:2011-01-31

Insurance --It's not that

Insurance is a bad name for it . The way it was explained to me it's more like extra bandwidth packages

You can buy 3 set of package at 40g each from your ISP for a max of 120g or you can buy only one , depending on your consumption

In Quebec the basic bandwidth limit is 60g in Ontario it's 25g

So Basic + insurance = you monthly cost

The limits were set by Bell

kingdome74
Emotionally Unavailable
Premium
join:2002-03-27
Syracuse, NY
kudos:2

The Mafia Would Be Proud

The main thing the mafia sold was "insurance" and "protection"... yeah, from themselves. How does this different from what the Canadian cable companies are doing? In a just world these providers would be jailed on racketeering charges.
neosporin
Premium
join:2007-06-03
Hamilton, ON

Help!

Even if you live in America, help us sign the petition. The government has already come out and said that they're reviewing the changes, but we need to pressure them!

It's not just Canadian internet in danger here, American companies will see the billions to be made and try to implement the same thing. It's Bell's step towards subscription based internet where you pay for certain websites (see Net neutrality).

Let's stop it while we still can: www.stopthemeter.ca
vintagewino

join:2003-07-22
Grimsby, ON
kudos:2
Reviews:
·magicjack.com
·TekSavvy DSL

Re: Help!

AGREED!!

Think back about a year or so ago when one of your major players tried something with low caps, and I believe the FCC intervened, but I think there were some fingers slapped.

Since a lot of our telecommunication rules are quite similar, if this sticks, start looking for your "big boys" arm-twisting your regulatory body to create the crap we're getting into.

I forgot - businesses that move "product" over the internet should also start looking at the NAFTA agreements, as it does create a significantly less competitive means to get their product. Translation: makes the "shipping costs" outrageous.
PerfectCode

join:2009-06-12
Portland, OR

...

Bandwidth caps are EVIL.

C_Chipperson
Monster Rain
Premium
join:2009-01-17
00000
kudos:3

Re: ...

How so?
talz13

join:2006-03-15
Avon, OH

Re: ...

UNREASONABLE bandwidth caps with UNREASONABLE overage charges are EVIL.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1
said by C_Chipperson:

How so?

Because congestion is completely unrelated to data consumption. ISPs pay money for bandwidth according to 95% peak usage, which occurs during "prime time". And their bandwidth costs are a small fraction of the overall cost of maintaining the network.

BF69
Premium
join:2004-07-28
Camden, TN

One good thing about this

Once the US sees how much of a total clusterfuck this turns out to be you'll never get it here.

hhawkman
Premium
join:2001-02-08
Port Hueneme, CA
Reviews:
·RoadRunner Cable

Re: One good thing about this

said by BF69:

Once the US sees how much of a total clusterfuck this turns out to be you'll never get it here.

You're joking, right?

P Ness
You'Ve Forgotten 9-11 Already
Premium
join:2001-08-29
way way out
Reviews:
·Comcast

Re: One good thing about this

said by hhawkman:

said by BF69:

Once the US sees how much of a total clusterfuck this turns out to be you'll never get it here.

You're joking, right?

you must be kidding. most major isp also own major networks or cable.

this is a total move to kill internet bandwith to kill internet video
--
NO U

BF69
Premium
join:2004-07-28
Camden, TN
said by hhawkman:

said by BF69:

Once the US sees how much of a total clusterfuck this turns out to be you'll never get it here.

You're joking, right?

No. Do you honestly think after all the shit is this going to cause that America ISPs will want that same shit matter how greedy they are? Think about it. Do cable/DSL ISPs have 5 GB caps and $10 per GB overages like mobile ISPs do? No why? Because customers wouldn't put up with that. Trust me if Charter and Comast and Time Warner could get away with 5 GB caps and $10 per GB overage fees they would. Time Warner couldn't even get away with a 40 GB cap and $2 per GB overages. Even with a 250 GB cap Comcast and Charter ahve gotten shit.
DMWCincy

join:2004-04-27
Fairfield, OH
said by BF69:

Once the US sees how much of a total clusterfuck this turns out to be you'll never get it here.

LOL, thanks for the laugh. the ISPs here will ignore the clusterfuck and see all the money flowing in to the coffers. That is all this is, another way to charge more and drive customers to the ISPs own servers(think TWC VOD compare to Netflix).
acrufox

join:2004-07-14
Canada
Reviews:
·Eastlink Cable
Let's not forget the bandwidth management most American Cable companies use. Sandvine technologies, which is a Canadian company.

American ISP's would jump at the chance to get away with something like this. Making internet at home as expensive with huge overage fees, just like cell phones currently are.

P Ness
You'Ve Forgotten 9-11 Already
Premium
join:2001-08-29
way way out
Reviews:
·Comcast

You knew this would happen if you dared to actually use your

INTERNET AS ADVERTISED!!!!

can't have video munching the profit margins.

2gb for 25 dollars. thats about a 23 dollar mark up.

that is where they are going to make the most profit on the tiny teirs where old ladies only use 200mb a month
--
NO U
Angrychair

join:2000-09-20
Jacksonville, FL

Re: You knew this would happen if you dared to actually use your

23 dollar markup? Try 25 dollars.

Transporting 2gb is practically free.

worthatry

@sbc.com

beat them at their own game...

What happens if all Canadians move back to the incumbents for their service, effectively killing competition? Would the government then have to make rule changes in an attempt to create new competition? This might be the avenue to reverse UBB if you act quickly and kill off the indies before the government thought it would happen...
Roop

join:2003-11-15
Ottawa, ON

my solution...

buy cable and dsl. loadbalance then with a dual-wan firewall like pfsense, zeroshell, etc. you get double the bandwidth and increased speed. best of all, redundancy.

i don't have cable tv or a regular phone line. if the internet goes down, it's time to bust out a news paper or something.

yeah it costs more, but then next time your ISP has an outage, if you wouldn't mind paying another $50 to be online right now it's worth it.

Gone
Premium
join:2011-01-24
Fort Erie, ON
kudos:3

... interesting...

@TonyClement_MP
Tony Clement
#UBB: I will be reviewing CRTC decision forthwith with a view to protecting Canadians & promoting choice.

He called himself the Consumer Minister last year. Let's see if he has the balls to keep that up.

Gone
Premium
join:2011-01-24
Fort Erie, ON
kudos:3
Reviews:
·Start Communicat..

Re: ... interesting...

@PmoSoudas
Dimitri Soudas

We're very concerned about CRTC's decision on usage-based billing and it impact on consumers. PM has asked for a review of the decision.
9 minutes ago via Twitter for BlackBerry® Favorite Retweet

This is huge. CFRB is reporting that the Harper government is pissed off over this.

Van
Premium
join:2009-07-08
New Orleans, LA

Not surprising. What makes this even more laughable

is how outrageously low some of these caps are when people watch Netflix, Hulu, or any type of streaming in general.

Just watching several movies put you up against the cap or remotely near it

And that somehow has become what the Internet Companies love....so that now consumers can either restrict themselves after several movies OR pay more and more ALL THE WHILE paying more every year in general for the service.

What a joke

Merin

@shawcable.net

Error error

Harper doing his job....

Does not compute....
zen1

join:2010-12-06

say what!.

i really feel sorry for canadians, their government does what IT wants, and the people have no say that counts in the matter!. that wouldn't fly in many other countries!. but if the canadians like it that way, that's fine too!.

clarknova

join:2010-02-23
Fairview, AB
kudos:5
Reviews:
·voip.ms
·link2voip

Re: say what!.

Wha?

The bureaucrats (the CRTC) have done what BELL wants, and the people have said plenty. The government, hearing the roar of hundreds of thousands of angry citizens, have promised to address the gaffs of the bureaucrats, if only to save their own skin.
--
db

bluefairee

@execulink.com

Boycott

While I think the rally is a good idea, what about a boycott of Bell, Shaw and Rogers, switch to the little guys. That would hit em more where it hurts. We can protest all we want but still giving our money to the big guys shows we are not serious and are willing to take it in the you know what. I understand the big guys will still get some of the money but, Not as much. In the end it's all in the pocket book folks. The big guys would lose millions. That's the only way to affect change. They don't care what we think, they never did, they care about the money we give them. I am no longer with the big guys. I have a small provider. Hop on folks, hit em where it hurts!

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