Usage Based Billing Myth: Business Impact
Posted by Laurel L. Russwurm on January 10, 2011
MYTH: Implementation of Bell’s Usage Based Billing application will not harm Canadian business.
FACT: Usage Based Billing application will not harm Bell Canada. It will harm other Canadian business.
UBB will harm Independent ISPs.
Since the Independent ISPs will not longer be allowed to offer Unlimited Service they are but adopt Bell’s Pricing scheme, they may be unable to compete, and go out of business. Either way, UBB will harm the Independent ISPs.
UBB implementation will certainly harm Canadian businesses operating online.
Since UBB will artificially inflate the costs of Canadian consumer’s Internet access by adding a new layer of pricing that will charge us for bandwidth. Since we have no way of knowing how much bandwidth we will use, the only way Canadians will be able to reduce costs is to reduce use via trial and error.
Since use UBB will increase the cost of Internet use, Canadian consumers will in fact use the internet less. Which will mean less surfing. And of course mean less shopping. And naturally less buying.
UBB implementation will result in fewer startups.
New business often grows out of hobbies. I just listened to the CBC Spark podcast about innovation where I heard that EBay began as a bit of software developed for fun on a long weekend. If Canadians are limited in our internet use by artifically inflated costs, we will be less likely to experiment with potential digital startups because many of us won’t be able to afford it.
Interestingly, it is clear that the Canadian Government understands fledgling businesses need a break on launch, which is why taxation doesn’t kick in until the business income passes a threshold.
With all these possible ramifications, it’s pretty clear to see that Usage Based Billing will hurt Canadian business.