interweb freedom

(formerly Stop Usage Based Billing)

Posts Tagged ‘GAS’

Canadian Market said NO to UBB

Posted by Laurel L. Russwurm on August 6, 2010

Telephone poles stretched along side a gravel rural road

No Usage Based Billing
The Internet is an interconnected network of wires connecting computers all around the world. The physical conduit of the Internet is the telephone wire or cable and associated equipment that connects together to form the “infrastructure” or “backbone”.

Because Canadian communications systems must cover great distances to serve a relatively small population these systems have traditionally required special treatment in order to provide Canadians with the services we need to both exist and compete in the first world economy. Although Canada has never had a strict telephone monopoly, from the very beginning different telephone companies provided services in different geographic locations across Canada. Which means we have for the most part had a “virtual monopoly” because each geographic area had only one telephone provider.

Regardless of what Canada’s telecommunication regulator the CRTC seems to think, if you have to sell your house and move to a new geographic location in order to get a different Internet Service provider it does not qualify as “consumer choice”. So although we have different companies providing access to the Internet, a great many Canadians have only one possible Internet Service Provider.

A Mennonite horse and buggy crosses the road

[When discussing the ISP “carriers” I pretty much always say “Bell” for the phone carrier, although in many cases Telus should be included as well. In the same way when I speak of the cable carrier I say “Rogers” to stand in for all the Cable companies, which over all of Canada I understand to also include Shaw, Cogeco, and Vidéotron because from where I sit here they all appear to be marching in lockstep. I do not presume to know if, when or how any of these companies may be interrelated. I myself have only had dealings with Bell and Rogers.]

infrastructure and private property

Somehow Bell Canada never seems to mention that the only way the telephone system we have today could have come into existence was through the goodwill of private property owners and government cooperation. They like to take all the credit for establishing the phone/cable infrastructure, but they could never have done it without our help.

Because the thing to remember is that telephone poles carrying telephone wire cross private land.

Had stringing the wire been left entirely up to the telephone companies, we might still be using smoke signals. Because without government assistance, the phone company would have had to negotiate with every single land owner. Individual property owners would have been able to prevent the telephone wire from crossing their land. Instead of ending up with a system covering all of the settled portions of Canada, we might have ended with many small unconnected pockets of telephone service.

Because as sure as the sun rises in the east, even today there are people who don’t want telephone service.

Certainly some would decline for religious reasons, while others might try to pry excessive sums of money from the phone company in exchange for granting a right-of-way across their property. To prevent such snags which might have rendered the existence of the telephone system impossible, forward thinking government mandated “easements” along the road side portions of private property. This government intervention allows utilities like electricity and telephone companies to put up poles along these easements and then string wires along them, or dig up land to allow cables or pipes to run under this land for the public good. In this way, the government acted to ensure Canada’s technologically wouldn’t lag.

The “who owns the wire” problem is not unique to Canada. Even in countries with dense enough population to support telephone competition it only makes sense to string one wire. Property owners can be persuaded to accept one set of telephone poles running along their land for the common good, but would balk at 5 sets of telephone poles. So even where there are five telephone providers they share the wire.

"Punchcard" photo by Mutatis mutandi

computers

When I was a kid, my Dad took us to a local university to see a gigantic machine that could solve mathematical equations if you fed it punch cards. Punch cards were exactly what they sound like: bits of cardboard with holes punched in them.

The computer programmer communicated with the computer via punchcards. The pattern of the holes made up the program. Back in those days of vacuum tubes, most people could not imagine the possibility that personal computers would ever exist. Computers were simply too big.

But then came miniaturization. Really, weren’t the first home computers was actually the digital calculators that swept over the world in the 1970′s? With the ability to achieve miniaturization, home computers were not far behind. The first home computers were DIY projects; if you wanted a computer you had to put it together. So naturally the first people to have home computers were the techies who could build them.

But it wasn’t long though before enterprising businesses began selling personal computers or PCs that anyone could use. Spreadsheet programs like Lotus Symphony revolutionized the accounting Industry. Desk Top Publishing was born. Games could be played. Calendars kept. The possibilities seemed endless. And they were.

Today ordinary people get personal computers in much the same way we get cars. We no longer need to know how to build or repair one.

the Internet

In the early days of personal computing, people could purchase modems that would connect computers via telephone lines. When your modem was connected to the phone line, it took control of your telephone service. When your computer was talking on the phone, you couldn’t. It got to the point where some computer users would get a second telephone line so their computing time wouldn’t tie up their telephone.

Before the Internet became available to ordinary people, there were independent computer networks. My first venture online was in 1989 with a commercial service called Compuserve. Although the research possibilities were excellent, the fun part was being able to live chat with folks from around the world.

The downside was that it was terribly expensive. You paid by the minute, which can add up quite quickly. Learning how to do anything took a lot of time and every minute online cost money. Although it was fun, being fresh out of college, I simply couldn’t afford it. So I went off line again. The public library was a much more economical place to do research.

I just went to search out Compuserve now. I’m happy they’re still out there. Oh and look… the deal I see is 2 months free to start and after that $17.95 per month unlimited. Twenty years ago my bill for a single month exceeded $100, and that was using one of their more economical billing plans! Times certainly have changed.

Later I became involved with an early computer network, a BBS or “bulletin board system”. These independent computer BBSs were very similar to the Internet forums of today; you posted your comment and it stayed there. People would check in over time and join in the conversation. No live chats here.

But it was an excellent antidote to Compuserve, because it was free. Voluntary donations helped support the system by paying for improved equipment for the people running it. A BBS was not a commercial venture, they were communities… today we’d call them social media… started by a few people with computer know-how and equipment to run it on. People found out about a BBS by word of mouth. Then as now content was important for finding and then keeping an audience.

three AOL disks

four AOL offers on four b;ue enrollment CDs

The people who owned the equipment controlled the BBS, and acted as the system administrators or SYSOPS. But it was the users who brought the BBS to life by beginning new discussion areas and posting conversations and content to the BBS. Because it didn’t happen in real time, the posts were often more thoughtful than live chat. But the owners held ultimate control; they could cut off anyone for any reason. Initially this power was only used to clamp down on abusive behavior; there were online Trolls then as now. Later on personalities and personal politics came into it.

My disillusionment coincided with one heavy contributor being cut off simply for having different attitudes and philosophies– mostly he annoyed the owners. But because he provided so much content and administered so many discussion groups, they didn’t want to cut him off for good, so instead they gave him small suspensions to keep him in line. That type of petty abuse of power is why I left that BBS, and has a lot to do with why I support net neutrality today.

That was around the time when the Internet became generally available to the public. Overnight there were Independent Internet Service Providers springing up all over Canada, and around the world. And although many people signed up, it was far from universal.

an array of internet hook up CDs

There were many seductive elements. Email and Instant Messaging held great appeal. Instant connectivity. Research, information… everything at your finger tips. But in many ways it was a luxury. A plaything. It was only later it became a necessity.

In my recollection, a lot people were initially resistant to going online because it was so expensive. There were many many ISPs, and so competition was fierce. Even so, it was still very expensive. ISPs charged by the minute. The most persistent and pervasive ISPs battling for customers was America Online.

AOL: Usage Based Billing

They must have mailed out hundreds of thousands of AOL sign up CDs. Maybe millions. I know I didn’t start keeping the CDs that kept turning up in my mail initially. Yet I still probably have around thirty of their CDs.   Yet I never did sign up with AOL.   I knew from my Compuserve experience how quickly the usage costs could add up, and how expensive it would be.   Not to mention virtually impossible to budget for.

AOL usage based offers

The AOL marketing campaign is writ large across those old CDs.
540 Hours Free
1000 Hours Free
1344 Hours Free
2000 Hours Free
3 Months Free
$9.95 for 6 months

AOL tried giving better and better introductory offers but it just did not work. After the early adopters, the techno types who would do whatever it took to be online — and more importantly pay whatever had to be paid– the mostly ordinary people just weren’t interested. It was a big cash outlay, after all. Just getting a reasonable computer system cost around three thousand dollars.

My first PC had a double floppy drive — not even a hard drive — a black & white screen — a dot matrix printer.  Three grand.

After laying out the green, most of us weren’t ready to sign away the rest of our disposable income for the Internet. Because after AOL’s “introduction period” was over, it would be back to the very pricey Usage Based Billing options. It just cost too much.

And there wasn’t even the content available online that there is today.

Certainly finding what you wanted took work, and learning is very expensive when you’re being billed per minute. The point is, you didn’t NEED to go online. You could buy a whole encyclopedia on one CD, or a spreadsheet program, a word processor or graphics software or games, and your computer could do everything you needed it to. People didn’t need the Internet. It was just too expensive. A toy.

What happened to AOL? The king of marketing? At one point they were the one to beat. They marketed the heck out of the Internet. Who else could afford to scatter CDs across the land with such bold abandon. Or convince respectable venerated Canadian banking institutions… notably some of the most caution in the world… to partner them? What cataclysm could have done for AOL?

Wait a minute:

Canada had ISP competition?  

Canada?

What happened to all those ISPs?

Bell Sympatico and Rogers Internet

enter the carriers

Bell Canada and Rogers Cable entered the fray.

Bell Canada was the major telephone carrier; they controlled and maintained the telephone cable backbone. Telephone traffic traveled over this wire, and now Internet traffic did too. Up until this time, Bell Canada just had phone lines, they were the major telephone carrier who controlled the wire backbone connecting home computer users to the Internet.

But now, Bell decided they wanted to get into the internet game. So Bell hung out a shingle as an Internet Service Provider, or ISP.

When Rogers entered the market they brought their own backbone in the form of urban cable connections. The first time I recall hearing about Rogers as an ISP they were offering high speed Internet connections. I wasn’t paying much attention back then. One minute there were scads pf Canadian ISPs and the next there were only two.

Bell and Rogers introduced “Unlimited Internet” into the Canadian market

Bell and Rogers used their corporate might to introduce low cost UNLIMITED Internet service packages that the smaller ISPs could not possibly match. Offering unlimited Internet access made trying it much more palatable because learning how to use it was no longer prohibitively expensive. Not only did customers switch to Bell and Rogers in droves, but more:

elimination of usage based billing allowed the Canadian Internet Market to really take off.

Canadian consumers told the market in no uncertain terms that we did not want the Internet on a Usage Based Billing model.

Low cost entry into the Internet made Canadians embrace the Internet. This is why Canada was an early adopter, and a leader in Internet use. Even though it didn’t take long for prices to climb. Since the other competitors were gone, Bell and Rogers had the market carved up between them so prices began to rise rapidly.

The Internet has impacted on just about every type of business there is. We buy and sell on eBay or Amazon. We pay our bills online. We can read Canadian laws online. Get up to the minute weather reports. We watch TVor read the newspaper online. Canada Post is offering to deliver email.

the Canadian Internet market clearly said “No” to Usage Based Billing

Because customers overwhelmingly chose “Unlimited” over the usage based pricing model, Bell and Rogers got the added bonus of eliminating the competition. Bell and Rogers were vying for supremacy so they built good infrastructure to offer the fastest best service. Back then, Canada had some of the best Internet access speeds at some of the lowest prices in the world.

This is a very large part of the reason that Canadians embraced the Internet so whole heartedly.

But the upshot is that Canada was left with only two ISPs. It was such a monumental error that even the Canadian Government noticed, and stepped in and told Bell and Rogers that they would have to share the infrastructure so that competitors could enter the Internet market in an attempt to re-introduce competition.

I’m not quite sure why, but it seems that all the Independent ISPs seem to get their Internet connection through Bell. When Bell set up the “Gateway Access System” (GAS) through which they sell wholesale bandwidth to the Independent Internet Service Providers The CRTC allowed Bell to set their own prices. Naturally they set very high prices. The Independent ISPs could then redistribute the bandwidth however they saw fit.

Canadian paper money, photo by laurelrusswurm

At first Bell was happy since they were making money from their GAS business. They were probably surprised that the Independent ISPs provided low priced packages and good Internet service without gouging that have built loyalty for the Independents. It’s funny how just about anyone you ask has at least one Bell or Rogers horror story in their repertoire, but I’ve never heard any about the Independent ISPs.

Canada’s place as an Internet leader has been slipping badly. Although Bell has done basic maintenance on their phone/Internet infrastructure they seem to have neglected the continuous upgrading they should have done. In real terms that makes Canada’s Internet service of today hopelessly out of date. What was cutting edge 15 years ago is paleolithic today.

Although the service has stayed the same with little or no infrastructure improvements Canadian Internet costs have been climbing.

(Make no mistake: the inflated Internet costs that Bell and Rogers have been charging have been more than enough to cover upgrades.)

Many Canadians went online because it was affordable back then, but that is no longer true.

Now, at a time when it has become more important to go in the Internet– to do our banking, pay our bills, find jobs, do school work– today Canadian Internet rates are some of the highest in the world. The Internet is no longer a luxury, it is a necessity for Canadians. But not all Canadians can afford to even go online. The “digital divide” is yawning already, but now it’s about to get even worse.

Because the CRTC has approved Bell’s application to begin Usage Based Billing.

Real costs have nothing to do with it. Market forces have nothing to do with it.

The CRTC will allow our Internet rates to double to economically force Canadians to reduce Internet use.

CRTC #fail



If you haven’t already, sign the petition. There are only 10925 signatures.

If you have already signed, who else should you be asking to sign?

That’s easy: anyone who uses the Internet.
Because Usage Based Billing will harm not only Canadians, but our Economy.

http://dissolvethecrtc.ca/

You can also call or write your MP, MP postal code look-up

Heritage Minister James Moore – email: Moore.J@parl.gc.ca

Industry Minister Tony Clement – email: Clemet1@parl.gc.ca

Prime Minister Stephen Harper – email: Harper.S@parl.gc.ca

After all, they work for us, don’t they?

STOP Usage Based Billing

STOP Usage Based Billing



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Usage Based Billing: A Glossary

Posted by Laurel L. Russwurm on August 22, 2009

No Usage Based Billing

No Usage Based Billing

The Usage Based Billing Issue will have a huge impact on all Canadians.

But it can be difficult for those of us who are not technically minded to follow the raging debate because we don’t know the jargon. So I’ve put together a Glossary. I’m not an expert, and in fact I’ve only learned what many of these things mean myself in the last week, but no one else is likely to do this, because:

  • The Big Three don’t want us to understand what’s happening because it is much easier to get away with stuff in a democracy if the populace doesn’t understand what is happening.
  • At the same time most of the technical people who are trying to fight this have been living and breathing this issue so long that it doesn’t even occur to them that most ordinary Canadians only understand about half of what they’re saying.

As always, if I get anything wrong, let me know so I can correct it.

Most of the jargon is too new to be in a dictionary, and although some of this is explained in wikipedia, not everything is. GAS, for example. That’s actually what convinced me this glossary was necessary. Because when learning about UBB I couldn’t figure out what gas had to do with the internet.

Although variations on these issues are being faced in other countries, at this time I am dealing exclusively with the Canadian version. I posted some of these definitions in the comments section of CBC ONLINE: Petition spurs CRTC debate yesterday.

UBB: A Glossary

bandwidth

Bandwidth provides a classic example of why regular people have a hard time understanding a lot of this, because it describes two very different rates of transfer.

Bandwidth is the measurement of download speed, measured in how many bits per second you can download.
Bandwidth has also come to refer to the transfer cap being placed on Canadian internet users, which is measured in gigabytes.

Put another way, bandwidth is a data transfer measurement of
(a) how fast you can go at any given time – your rate of speed, or
(b) how how far you can go in any given month – your allowed capacity.

Bell Canada

Looking at the Bell Canada homepage tells us that this corporation provides these services:

  • Mobile (aka cel phone service – Bell Mobility)
  • Internet (aka ISP – Sympatico)
  • TV (aka television broadcasting – express vue TV)
  • Home Phone

From its humble beginning as a crown corporation intended to string telephone wires across Canada, Bell Canada no longer simply provides telephone service. Instead we find Bell Canada firmly in the position of providing both the medium and the message. And apparently this is not enough. (Perhaps it’s time to look at dismantling this telecommunications giant.)

Big Three

Sometimes called the New Big 3, these are the three big Canadian telecommunication players, Telus, Bell Canada and Rogers Cable.

Canada

The Arrogant Worms sing that Canada Is Really Big and they’re right. The fact that Canada is physically the largest country in North America is one compelling reason why internet access is so important for Canadians. Like the railroad before it, the internet helps to connect Canadians to Canadians.

When telephone service first became viable in the early 20th century, no independent company would have had the resources to string the phone wires from coast to coast. The sheer size of Canada is also the reason why most of the Canadian telephone cable infrastructure was paid for by Canadian tax dollars. And why Bell Canada is forced to share this infrastructure with independent ISPs. Bell Canada is only the custodian of the Canadian telephone infrastructure, not the owner of it.

CanCon

A quota system established by the CRTC which is supposed to ensure that Canadian Broadcasters play a percentage of Canadian Content. The terms and definitions of this quota have varied over the years.

Carrier

The corporation controlling the wires. (aka The Big Three)

CRTC

Canadian Radio-television and Telecommunications Commission or CRTC is supposed to be an independent public organization that regulates and supervises the Canadian broadcasting and telecommunications systems.

“The CRTC’s mandate is to ensure that both the broadcasting and telecommunications systems serve the Canadian public. The CRTC uses the objectives in the Broadcasting Act and the Telecommunications Act to guide its policy decisions.”
from Canadian Radio-television and Telecommunications Commission: Mandate

Deep Packet Inspection (or DPI)

Deep Packet Inspection allows Bell Canada the internet equivalent of opening your mail. The CRTC allowed them to look at anything you do online without having to go to the trouble of getting a warrant. How many people send encrypted email?

Deregulation

In the context of the CRTC and UBB, Degulation would be the removal of governmental control by rules or restrictions on the Canadian telecommunications industry.
Many Canadians believe that the CRTC is corrupt but that replacing the CRTC with an alternative regulatory body would simply create new corruption, and want no regulation of the Canadian telecommunications industry.

Dissolve the CRTC

Dissolve the CRTC is both a website and an online petition. Actually, I guess I’d have to call it a rallying cry as well.

Many Canadians believe that the CRTC is corrupt but that it would be possible to replace the CRTC with an alternative regulatory body which would act in the best interest of Canadians. Because many Canadians believe that good regulation of the Canadian telecommunications industry would be the best for Canada.

dsl

Internet connectivity provided over the wires of a telephone network is called a Digital Subscriber Line or dsl.

GAS

GAS, or the Gateway Access Service is how Bell Canada allows Independent ISPs access to their hardware.

Independent ISP

An Independent Internet Service Provider (ISP) purchases Gateway Access to the infrastructure (the wires) from the carrier, which they then break down into smaller packages which they sell directly to their customers.

ISP

An Internet Service Provider (ISP) is a corporate entity which delivers internet connectivity directly to the public.

In Canada this includes:

  • Independent ISPs who sell internet service directly to the public, as well as the
  • Carriers who also compete directly with the Independent ISPs by selling internet service directly to the public.

Net Neutrality

Net Neutrality is the idea that the internet should be allowed to be free of restrictions so that it can be an unshaped resource. The particular Canadian issues is the Canadian consumer desire to stop the telcoms from controlling internet content or throttle the users.

From the CBC ONLINE: Petition spurs CRTC debate comments
The Sjarv wrote:
“If you want to compare internet usage to products like electricity or water, you must first provide modems that can access the internet unshaped with maximum speed allowed, let the personal computers regulate the speed, then you can charge for the amount consumed. Similar to facets and breaker boxes.”

Regulation

In the context of the CRTC and UBB, Regulation is the governmental control by rules or restrictions on the Canadian telecommunications industry. The rationale is to to control market entries, prices and standards for the benefit of Canada and Canadian consumers.

Rogers

Rogers Communications

  • Mobile (aka cel phone service)
  • Internet (aka ISP)
  • TV (aka television broadcasting)
  • Home Phone

Like Bell Canada, Rogers Communications now provides both the medium and the message. Perhaps it’s time to look at dismantling this telecommunications giant as well.

Telcoms

Telecommunication Companies

Telus

Telus is the third member of the Big Three. Funny, they also provide

  • Mobile (aka cel phone service)
  • Internet (aka ISP)
  • TV (aka television broadcasting)
  • Home Phone

providing both the medium and the message, like Bell Canada and Rogers Communications. Dismantling may be a good idea here too.

Throttling

By doing a deep packet inspection Bell Canada can identify bittorrent traffic and discard a packet you have sent with a request , so you never get a reply, which forces you to resend it.

This increases the amount of packets you have to send and it takes far longer for your packets to get through. When the internet carrier drops a percentage of your packets it slows down your transfer speed. But although the packets the carrier throttles don’t go anywhere, you are still charged for them. This pads your bandwidth usage. So when you send or receive a 5 gigabyte file you might be charged for a 7gigabyte transfer.

Transfer Cap

The maximum amount of internet use you will be allowed before the plug is pulled.

Usage Based Billing

In addition to the rates already being paid by internet subscribers, CRTC is allowing the carrier Bell Canada to charge all internet subscribers for the amount of bandwidth they supposedly use. (Even those of us who are not even their customers.) If this is actually implemented Rogers won;t be far behind.

The so-called “Usage Based Billing” will at best be based on inaccurate measure of supposed bandwidth use– as determined by Bell Canada.

VoiP

Voice Over Internet Protocol are Internet services which allow internet users to speat to one another using the internet rather than their telephone, provided by services like Skype, Yahoo and Rogers.


A few more links from CBC ONLINE: Petition spurs CRTC debate comments

The full Usage Based Billing that the CRTC has tentatively agreed to (excepting the “uncorrelated usage charge”) can be found here”
Usage Based Billing Zip File Thanks to btimmins

Over 6000 Canadian comments urging the CRTC to turn down the UBB application can be found at CRTC’s web site — Thanx to Abattoir6


I was just sent this link to an excellent April 14th Vaxination Informatique letter sent to the CRTC (or view the Google html version

This letter clearly identifies a plethora of problems stemming from Usage Based Billing. Thanx Bob.

Petition Update: as of time of writing, the Dissolve the CRTC petition is up to 4537 signatures!

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