interweb freedom

(formerly Stop Usage Based Billing)

Posts Tagged ‘loyalty’

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: CRTC Complaints Department

Posted by Laurel L. Russwurm on September 2, 2009

No Usage Based Billing

No Usage Based Billing

FIRST: I mentioned in Psst… Pass It On: Stop Usage Based Billing that everything in the Stop Usage Based Billing blog was in the public domain. It occurred to me that it might help to make this announcement a little more formal. So I have now officially registered this blog with a Creative Commons CC0 listing to place my Stop Usage Based Billing blog in the public domain. This will allow everyone the right to borrow any bits of this blog they may find useful. For letters of complaint, for example. You’ll find the creative commons badge at the bottom of this post, but applies to the entire Stop Usage Based Billing blog.

Of course the downside of registering a Creative Commons CC0is that supporters of Usage Based Billing people may attempt to use material provided in this blog in their continuing misinformation attempts.

You might ask: who in their right mind would support Usage Based Billing?

Sadly, the answer to that one is easy, the main pro-UBB lobby is of course those who expect to profit from Usage Based Billing. That is to say primarily Bell Canada, but can include everyone and every company associated with Bell Canada, including CTVglobemedia and every one they can control either through economic plums or economic sanctions. I’m sure that this type of manipulation is a lot easier during a world wide recession.

The only others supporting UBB are those who have bought into the misinformation being spread and promoted by pro Usage Based Billing lobby. There is no shame in that, after all you can’t beat the talented writers and advertising folks employed by CTVglobemedia. It’s even conceivable that some of those talented people don’t really understand the jargon and might not realize why this is such a big problem. I’d expect controlling the jargon would make it a lot easier to put your own spin on it.

I know we think of a lobbyists making a big noise to sell their cause, but when you’re lobbying for acceptance of something like Usage Based Billing which can’t possibly be supported by any rational argument, lobbying for a silence would certainly be the way to go.

If you’ve already signed the http://dissolvethecrtc.ca/ online petition, and are looking for something else to do to try and stop UBB, as a concerned Canadian it is always within your rights to make a complaint to the CRTC.

CRTC

CRTC

Even if you have already submitted your comment or complaint to the CRTC specific to CRTC Ruling File Number # 8740-B2-200904989 – Bell Canada – TN 7181 to protest the CRTC’s extremely bad decision to allow Bell Canada to implement Usage Based Billing, you are still well within your rights to place another complaint through the CRTC complaints page I’ve just stumbled across on the CRTC website.

These pages offer you advice and explain the complain procedure to make it easy for Canadians to submit specific customer complaints to the CRTC in the areas of :

  • television and radio (Broadcasting complaints: TV and Radio | CRTC),
  • phone (Telephone service: making a complaint) including both land lines and cell phones, and
  • internet service in Canada (rates, quality, access, legal actions and complaints)

I would venture a guess that a completely different group of CRTC staffers deal with the complaints made through this web form. In fact there would probably be different CRTC complaints staff sections to deal with each of the three different areas the CRTC is supposed to regulate.

At any time you can go to the CRTC online complaints department and submit a complaint here:

Ask a question or make a complaint
Send us your question or complaint about television, radio, telephone, cellphone, Internet or other services. CRTC responds to most questions within 10 working days. Find out more about how we handle complaints for Television and Radio, phone and internet.

1. Make a Complaint about Broadcasting

Perhaps you might wish to make a complaint about broadcasting. The CRTC first recommends that you complain to your broadcaster before complaining to the CRTC. This is reasonable. So first you should contact CTV and ask them why they are not covering Usage Based Billing. Remember, the CRTC first announced UBB in April, but just approved it in August. In all that time, why has CTV not covered Usage Based Billing? My most recent CTV web search came up with this:

Screenshot: CTV Usage Based Billing Search

Screenshot: CTV Usage Based Billing Search

The fact that more than six thousand Canadians have already signed the online petition calling for the dissolution of the CRTC– in spite of the apparent news blackout of Usage Based Billing– hasn’t raised a single microphone at CTV. Isn’t that a strong indication that Canadians are very are interested in the CRTC Usage Based Billing decision? Six thousand concerned Canadians would trigger CTV coverage of any other story. Yet CTV is not covering Usage Based Billing. Why?

CTV is covering the CRTC and CTV is covering news about the Canadian Internet. Here is an example in a CTV online article about the multi-billion dollar revenues generated by Canadian internet services CTV: Telecom Growth. But they are doing it selectively.

Could it be that Bell Canada isn’t allowing CTV news to cover this news? You can ask CTV news yourself. Send in your questions directly:

When that doesn’t work, you may send your complaint along to the to the CRTC about the fact that CTV is only selectively reporting the news to Canadians.

2. Complain about the Telephone Company

It would not be unreasonable to wonder about Bell Canada’s “confidentiality of customer records” I certainly would not trust any company who read their customer’s mail without permission, which is essentially what Bell Canada is doing with its internet “deep packet inspection”. Maybe they really are only reading the bits that say what kind of packets they are. Personally, I wouldn’t take Bell Canada’s word for it.

(Actually, its even worse than just reading their customer’s mail, they’re interfering with it too.)

Like everyone else in Canada, I’ve had issues with Bell Canada over the years. Even though they were incredibly high handed in the days of monopoly, the influx of competition seemed to make them ease up. After all. Bell Canada has always been there. Why not trust them?

Hmmmm. Not too long ago I had a problem with Bell Canada, and I ended up talking to someone in their “loyalty” department. To smooth my feathers he fixed the problem and gave me a $30.00 discount on my next bill. Then he actually told me that if I called back in three months and asked for the loyalty department and said I was going to switch to a different telephone carrier, they would give me another $30.00 discount. He also told me that Bell Canada would give me this “discount” every three months if I kept calling back.

What kind of business is Bell Canada running? I think that policy is twisted. In the first place Bell Canada is essentially bribing customers from switching to the competition. Class action suit anyone? Adding insult to insult, Bell Canada has such a low opinion of Canadian consumers that they don’t even trust us to stay bought.

If Bell Canada can afford to do this it strikes me that they are making too much money already. Lets look at this as a business practice. The first thing that really bothers me is that the Bell Canada Loyalty department is actually penalizing Bell Canada’s loyal customers. The granny who would never dream of switching doesn’t get that annual $120.00 savings because she is loyal to Bell. Call me crazy, but I just can’t figure out why Bell Canada doesn’t just improve service? Reduce charges? Compete fairly? Maybe they are so sure that they are going to get to be a monopoly again that they would rather bribe customers piecemeal as needed than clean up their act.

Personally. I would rather not deal with a company that treats its customers so shabbily. I’m going to be switching my land line to Teksavvy. The savings (yes, in fact they offer better deals than Bell Canada for telephone service too) will help my family budget for the increased internet costs that Usage Based Billing will cause us.

Warning: If you decide to do the same, make sure you call Teksavvy or whoever your new carrier is going to first. Arrange with the NEW CARRIER to arrance the transfer of service. If you do this, you will be able to port your existing Bell Telephone number to the new service. If you call Bell first and tell them you want to cancel, they are likely to disconnect you before your new service is in place, which means that you will not be able to keep the same phone number. (Just another way Bell Canada likes to mess with us

So, after you’ve talked to the phone company, you are supposed to go to the Commissioner for Complaints for Telecommunications Services (CCTS) and find your telephone companytheir list on , you are supposed to deal with them in an effort to clear up the problem.

If you don’t get satisfaction through this process, or if your company is not on the list, you can always go back and make your complaint to the CRTC.

3. Complain about Internet Service

I wouldn’t think there would be any limitation on how many complaints any one citizen is allowed to submit, so long as the topics are different. For example you could reasonably complain to the CRTC about:

  • the fact that CRTC is allowing Bell Canada to implement Usage Based Billing at all
  • the fact that the CRTC would rule in favor of Usage Based Billing in the absence of any meaningful public consultation
  • the fact that the CRTC would rule in favor of Usage Based Billing without making sure that the Canadian public was informed of this sweeping change before the fact
  • the fact that CRTC is allowing Bell Canada to charge you for Usage Based Billing if you (like me) are not a Bell Canada internet customer
  • the fact that CRTC’s ruling will allow Bell Canada to increase your costs in accessing the internet
  • the fact that CRTC has jeopardized your privacy by allowing deep packet inspection of your internet usage, and
  • the fact that CRTC is allowing Bell Canada to “throttle” internet use by inflating customer bandwidth, and
  • the fact that this CRTC decision to allow Usage Based Billing will allow Bell Canada to fraudulently bill internet users for the Bandwidth which the customer has not actually used but which has been deliberately inflated through Bell Canada “throttling”
  • the fact that CRTC is allowing Bell Canada to implement Usage Based Billing in addition to what customers are already paying without providing any additional service to the customer to justify this increase
  • the fact that CRTC is allowing Bell Canada to implement Usage Based Billing in spite of virtually unanimous opposition from the public (the small segment of the public that found out about UBB)
  • the fact that CRTC allowed Usage Based Billing will make Canadian internet the most expensive in the world, and therefore unreasonably expensive, which is the opposit of &ldrquo;affordable&rdquo’
  • the fact that CRTC allowed Usage Based Billing which will make internet access less accessible to Canadians due to these excessive new costs
  • the fact that CRTC allowed Usage Based Billing will damage the Canadian economy by limiting Canadian internet access for purposes of education, technology, art, music, writing, resarch, film, science, research, business etc.
  • the fact that there does not appear to be any good nor auditable way vouched for by Measurement Canada of measuring the usage in order to assess “Usage Based Billing” charges.
  • the fact that CRTC allowed Usage Based Billing will interfere in the internet consumer market to the extent of eliminating the independent ISP’s ability to compete, and
  • the fact that CRTC allowed Usage Based Billing will interfere in the internet consumer market to the extent of forcing Bell Canada’s (Sympatico) competition, the independent ISP’s, to break contractual agreements with their customers, and which will certainly damage and possibly destroy these companies, which will
  • effectively neutralize and wipe out all Bell Canada (Sympatico) competition.

CRTC would like you to go through the same process as with the telephone complaint, where you try to resolve the problem with the service provider. So if you are in fact a Bell Canada (Sympatico) customer, you can direct your questions and complaints directly to Bell or the Commissioner for Complaints for Telecommunications Services Inc. (CCTS) first.

Of course my problem is not with my ISP, my problem is with Bell Canada’s interference in my business relationship with my ISP and with the CRTC’s ill advised approval of Usage Based Billing. So for me, it is a case of going back to make your complaint to the CRTC. Perhaps if enough Canadians ask enough questions we will actually get real answers. Perhaps if enough Canadians complain, the CRTC will be clever enough to quash the Usage Based Billing regulation, and then consider actually adhering to their mandate.

It should be more difficult for CRTC to ignore these complaints as these complaints are supposed to be handled by a staff member within ten days. THESE consumer complaints are supposed to generate a human response. Perhaps if we help to use up their budgeted resources they might be able to grasp why it is bad to allow implementation of Usage Based Billing which will certainly affect the budgets of the Canadian citizens they are supposed to be looking out for. Maybe then the CRTC wouldn’t be so eager to completely ignore the wishes of the citizenry, as did in making this bad decision in the first place.

To the extent possible under law, Laurel L. Russwurm
has waived all copyright and related or neighboring rights to Stop Usage Based Billing.
CC0

This work is published from Canada.

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