interweb freedom

(formerly Stop Usage Based Billing)

Posts Tagged ‘profits’

Why Usage Based Billing Won’t Bring Bell Canada the Profits they Expect

Posted by Laurel L. Russwurm on September 8, 2009

No Usage Based Billing

No Usage Based Billing

Bell Canada applied to the CRTC for permission to implement Usage Based Billing.

Incredibly, the CRTC completely disregarded the wishes of the thousands of Canadians who told the CRTC they wanted the Bell Canada cash grab application to be denied.

Naturally, the Independent Internet Service Providers also asked the CRTC to deny the order which will at best seriously damage their ability to do business in Canada.

Bell Canada is not actually providing any new services to the Canadian internet users who will be hard hit by the additional fee being levied in exchange for… nothing.

Customers will be paying more for the very same service only because the agency that exists solely to regulate the telecommunications industry on behalf of Canadian citizens has completely ignored our wishes by granting Bell Canada’s request to unreasonably elevate out rates in exchange for… nothing.

If you believe that the CRTC should have done their mandated job and used their regulatory power to prevent Bell Canada from gouging Canadians rather than granting them the authority add additional costs to Canadian internet users in exchange for…. nothing… you may wish to express your disapproval of the CRTC by signing the online petition at http://dissolvethecrtc.ca/

The saddest thing is that Bell Canada probably won’t even realize
the vast unearned profits they expect from Usage Based Billing.

Rich Canadians
The only Canadians who will be able to easily afford to pay the unreasonably inflated costs without a murmur are unlikely to do so. Because of course, one reason why the rich retain their wealth is because they don’t squander money for… nothing.

Since Independent ISPs are being forced by CRTC to implement Bell Canada’s Usage Based Billing, CRTC has effectively legislated them out of independence, and it will be a miracle if they can continue to exist. So the only way rich Canadian internet users will be able to express their anger would be to switch to Rogers, Canada’s other over endowed Internet Service Provider.

Marginalized Canadians
Of course the people who can just barely afford to be connected to the internet now, and the people who were hoping that they’d be able to connect to the internet in the near future will be out of luck. They just won’t be able to do it.

In the midst of this global recession, people who are out of work will have a much harder time finding jobs since an increasing number of employment listings are handled exclusively online.

Ordinary Canadians
The people who can afford to access the internet today may in fact stay connected to Bell Canada or the newly emasculated Independents after Usage Based Billing is implemented. Most ordinary Canadians like myself will not provide Bell Canada with the big profits they hope to realize for the simple reason that our budgets will not allow it. At least not after the first *GASP* that many of us will have when the first Usage Based Billing invoices are issued come November.

So Bell Canada will receive a one time pure profit spike largely because most Canadians won’t be prepared for it since there has been next to no media coverage. (That’s the kind of thing that happens when a Regulatory body like the CRTC allows the carrier to own the media outlets and control news media content.)

Bell Canada is expecting to charge these usurious rates to Ordinary Canadians so that they realize a big profit for doing… nothing.

Since the internet has become such a big part of our lives, Ordinary Canadians are unlikely to just walk away from it.

But Canadians will no longer be able to participate online as fully as the rest of the world’s citizens.

We will stop being bold.

Because the thing about Usage Based Billing is that if we are very very careful, we may be able to keep with our budgets. Of course if our inboxes have a heavy dose of spam we may have to stay offline a bit more for that month. What other things will change? We’ll be unlikely to participate in Wikipedia. So all those Canadians who have been freely contributing to wikipedia’s store of internationally accessible knowledge will think twice before they do it again.

Big deal, the CRTC might say. Wikipedia isn’t even Canadian, they might say.

And I would agree that wikipedia is not Canadian, it is international. And Canadians have been promoting Canada to the world through wikipedia.

Which is why wikipedia has a large proportion of Canadian Content. (Maybe even more can con than you would get on a Canadian radio station.) Up until the advent of Usage Based Billing, like everyone else in the world, Canadians have been adding information we feel is important to wikipedia. The kind of information that would be found in an old time encyclopedia. But in addition to all that, wikipedia hosts an impressive amount of information on Canadian art, artists, musicians, etc.

The List of Bands from Canada is only one small way that ordinary Canadians have supported Canadian culture on the internet. But some of the Canadians who promote Canada to the world in that way are no longer going to be able to afford to do so. And many other Canadians will never have the opportunity to even try to participate in anything like wikipedia. It will just cost too much.

Bell Canada’s Usage Based Billing Canadian will certainly cause contributions by Canadians to fall off. It will be too expensive.

How much amazing art and music will Canada miss out on by preventing many perfectly good Canadians from getting internet access. How much independent research and development will be done in Canada if it is too expensive for average people to utilize the internet full strength.

Canadian Small Business
How many small businesses will simply not be able to compete? Even though as far as I know “business” connections (currently substantially more expensive than individual connections) are not supposed to be affected by the introduction of Usage Based Billing. Except that many small businesses who are either starting out or just hanging on by the skin of their teeth (this is after all still a recession we’re in) don’t have “business” connections.

And of course businesses that rely on website advertising revenue will suffer a big downturn thanks to the drop in casual Canadian internet use.

Usage Based Billing will certainly change how Canadians use the internet and make it much more difficult for Canada to compete in a global economy.

Even if you work for a big company who can afford a business connection, they are unlikely to provide an additional business connection to allow you to work from home. So Usage Based Billing will impact on the ability of employees to “telecommute” because it will be too expensive.

And Bell Canada?
In order to implement Usage Based Billing Bell Canada will have to spend money to handle the administration of this new billing procedure. So Bell Canada is going to be spending a little bit more money to do that. But particularly in this economic climate Bell Canada is not going to take in the big pots of money they are expecting Usage Based Billing to generate.

We’re in a recession. Even if ithe recession is beginning to ease off, the money just isn’t there.

STOP Usage Based Billing

STOP Usage Based Billing

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Usage Based Billing

Posted by Laurel L. Russwurm on August 27, 2009

No Usage Based Billing

No Usage Based Billing

There is a growing stock of information, articles and commentary about Usage Based Billing online. I’ve been adding links to web pages on this and related subjects in my sidebar. (All links… no ads!)

But reading through some of the online commentary I’ve found some bits that bear repeating, so that’s today’s thing.

It’s interesting to see what happens when the Usage Based Billing issue rears its ugly head south of the border. They actually have competition. And they appear to have Regulation which appears to be beneficial for the consumer. Particularly interesting is that in the US, Usage Based Billing is thought to be a bad thing for the ISPs for precisely the reasons that Bell Canada wants Usage Based Billing

From TELEPHONYONLINE
I’ve heard this before

“ But first, why is usage-based billing a really bad idea?

Consumers don’t get it.
While many understand that a gigabyte is a measure of file size, the average consumer isn’t able to correlate web activities—e.g., downloading movies, uploading photos—with bandwidth usage. And anyone claiming that consumers also don’t understand kilowatt hours might want to think twice before comparing themselves to regulated monopolies.

The bill could be really big.
Even the most eco-ignorant consumer, leaving lights and appliances turned on 24×7, is unlikely to receive a power bill more than two or three times the monthly average. Compare this with the following hypothetical example: a 5Mbps broadband service costs $34.95 per month and carries a 40 gigabyte per month cap. Each gigabyte above the cap costs a buck. Before going on vacation, your teenage son decides to download YouTube (like, the whole site). Assuming the broadband service could actually run at 5Mbps (few operators will admit that it can’t), the bill at the end of the month? $1,637.45, almost 50 times the base price.

Never change the price without improving the product. One of the reasons airlines encountered such stiff headwinds with their checked-luggage policy is that the service wasn’t improved. Bags didn’t arrive more quickly or get lost less frequently. Consumers dislike this, especially where technology is concerned. Although they may talk about fairness, few broadband operators claim that usage-based billing results in a better broadband product, it’s just priced differently. ”
— Kevin Walsh

I found this look at our growing internet need strangely appropriate:

from Slashdot Forum
“Such A SCAM
(excuse the vague “profit” comparison here )
1 – charge per use, people balk ‘ why do i need that internet thing’
2 – make it unlimited flat rate and people love it and flock to sign up
3 – let people get used to it for a decade or so
4 – start overselling to get the last few holdouts
5 – slowly add caps, incrementally so people don’t complain too much
6 – reinstate charges per use now that its an integral part of daily life.

Sounds like drug dealers to me.”
— nurb432, Thursday April 16, 2009

Quite often gems can be found in the online Comments pages.

From the CBC ONLINE: Petition spurs CRTC debate – Comments
“bottom line is : it should be illegal to be the carrier and the content-provider at the same time. Then EVERYONE is on equal footing. The carrier(s) (really, think about that) also should be so heavily regulated that even partial ownership in one and in a content provider should mean a 5 year jail sentence with no chance to buy your way out of it.”
–justcase, 2009/08/22, 2:32 AM ET

When I was first finding out about Usage Based Billing Antonio Cangiano’s blog told me the mechanics of how to complain to the CRTC. Even though it was already “too late” for the CRTC to happily accept submissions, I believe that it is important for Canadians to continue to make their complaints directly to the CRTC, select Tariff as a subject, use File Number # 8740-B2-200904989 – Bell Canada – TN 7181. If you want to ensure that your words are heard, you can post them in an online blog, or if you aren’t a blogger, copy your comment to somebody else’s blog or forum online, perhaps even in the Dissolve the CRTC forums

“If Bell were to be successful with their application, ISPs would be forced to change their current offerings, cap internet usage and substantially increase the price of extra Gigabytes per month. In practice, we’d be paying more to get much less, and most people would not go through the hassle of dealing with this, thus opting for Bell – despite their absurds usage limits (60GB per month, are you kidding me?).”
–Antonio Cangiano

One of the things that I especially like about Antonio’s post his very Canadian advice to those of us who are enraged to “please send your polite comments and concerns to the CRTC” Another place ordinary people are talking about Usage Based Billing is michaelgeist.ca:

CRTC should be dismantled
So we have the net neutrality hearings which were dominated by traffic-shaping practices, are we to have another for restrictive bandwith caps? I have had it with the CRTC. Why are former employees of the very organizations they seek to regulate being allowed serve on the CRTC? I mean lately we are seeing opposition to police investigating police as being a problem, should we not see the same concerns in the CRTC?”
–KickingRaven

Bell is effectively choking out competition with the aid of the CRTC.

The CRTC mandated access to the last mile connection to promote competition in the market, which spawned the formation of various businesses to use the network connection to supply their own internet connectivity. It seems that the CRTC has now seen fit to allow these businesses to be squeezed out of the market. This protection of Bell at the expense of competition is not healthy for the future of the internet connectivity in Canada and runs contrary to the purpose of the CRTC and the best interests of Canadian citizens.

What this does is highlight the problems in the CRTC and its inherent internal conflicts in both the Broadcast and Telecom sectors.
Perhaps rather than have these biased myopians deal with future convergence it is time to disband the CRTC and replace them with a body that really understands the big picture and represents the best interests of Canadians.

The CRTC’s interpretation of media convergence would seem to be, all Canadian media access controlled by two or three corporate giants. We are firmly on that road, now just a few gratuitous public hearings away from it being cast in stone.”
–Marcus Coles

Canadian Flag

Forgo politeness in favour of the public good.

And yes, I do know we’re Canadian. And as a rule Canadians don’t like to push our views on each other. Personally, it made me uncomfortable to send a spam-like email to my Canadian friends and family. But the thing to remember is that this is not spam. This is a public service announcement.

It is in your friends’ and family’s best interests to know about this. Usage Based Billing will have a tremendous detrimental impact on every Canadian who uses the internet. So, I know you’re Canadian too, but anything you can do to help fight this fight will be worth it.

You may have noticed the dearth of Usage Based Billing coverage in the traditional media. A huge part of the problem is that the CRTC has allowed incestuous relationships between our major media carriers and broadcasters. So CTV is not likely to speak out against Bell Canada unless forced to. But if there is enough outcry, they will HAVE to cover this story. Fortunately we have CBC online covering the story.

But Canadian consumers have been at a decided disadvantage in this fight because the story has NOT been getting out. A huge part of the problem is that the interested parties conveniently control most of the media in this country. Should Usage Based Billing be implemented, I expect that will only get worse. So maybe we can help save the internet by using it now in any way that we can.

So of course after you’ve signed the petition, encouraging others to follow suit would certainly help.

http://dissolvethecrtc.ca/

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Usage Based Billing: The Misinformation War

Posted by Laurel L. Russwurm on August 26, 2009

No Usage Based Billing

No Usage Based Billing

It sure seems as if Big Brother is alive and well and living in Canada.

I’m beginning to think the misinformation being spread about Usage Based Billing is deliberate.

So here’s my attempt to address some of the pervasive misinformation I keep finding online. Funny, it’s always spread by anonymous or pseudonymous people.

Misinformation: Bell Canada’s infrastructure was privately funded.

False. Because of Canada’s sheer size, Canadian governments have done things to try to connect us. Once that meant building a railroad from coast to coast. In the early twentieth century, it meant creating a crown corporation called Bell Canada to run wire from coast to coast providing telephone service to Canadians. The Canadian telephone cable infrastructure was created through governmental protection and regulation protected and supported in its deployment, which is why Bell Canada is forced to share this infrastructure.

Bell Canada is only the custodian of the Canadian telephone infrastructure, not the owner of it. The Canadian government could have just as easily set up an independent body to manage the infrastructure. Maybe it’s time.

Misinformation: The Independent ISPs should be reinvesting all their profit in building their own infrastructure.

False. That would be nice but so far all they’ve had time for has been to run an honest business and re-invest every spare nickel in the self defence needed to strategize and battle against whatever the current Bell Canada effort to put them out of business.

Of course if we wanted a level playing field, along with dissolving the CRTC the Canadian government could simply dismantle Bell Canada. How many minutes would Sympatico last in a free market if they had to actually compete?

Misinformation: Internet service is slow because your neighbor is downloading movies.

False. If the internet is slow it is because Bell Canada is deliberately slowing it down by the process they call throttling.

Misinformation: When your neighbor downloads movies or music he is stealing.

False. In Canada peer to peer downloading is legal. Downloading a copyrighted movie would be copyright infringement, but only if the copyright holder doesn’t allow it. Depending on the license, it may be perfectly legal to download movies.

Bell Canada’s “throttling” of the internet actually comes much closer to stealing since customers are forced to pay for bandwidth that they don’t receive.

Misinformation: The Independent ISPs are making huge profits.

False. The huge profits are going to Bell Canada (and the rest of the Big 3) leaving the Independent ISPs to function on the crumbs that are left. And still, they provide better deals and better service and make a reasonable profit.

Misinformation: The internet is getting full. It will clog up and crash.

False. This is an urban doomsday legend that has been around pretty much as long as there’s been an internet. Sometimes referred to as the exaflood it is basically a fallacious prediction that the internet will come crashing to a halt because there is not enough space for everything we are using it for. This is used to justify inflationary pricing. Like for instance Usage Based Billing. In fact, if the Internet were full, there wouldn’t be any room in it for Bell’s inflationary practice of throttling.

Misinformation: There is a lot of competition in the Canadian internet market.

False. This one is often used to explain why the CRTC does not do its job. There is some competition. The small internet companies went into business to provide a service to Canadian customers. I’m willing to bet that setting up as an Internet Service Provider is not cheap. But those who have went into it in good faith, naïvely assuming that government watch dog (the CRTC) would at least keep things fair. If Usage Based Billing is actually implemented, most, if not all, will suffer severe economic reverses and may not be able to stay in business.

If that is allowed to happen it would be the end of competition, leaving the field to the Big 3. Aka monopoly.

Mudslinging, ad hominem attacks, name calling or otherwise trying to discredit the opposition by malicious innuendo is another generally used tactic when there is little to say for the position you’re defending.

Remember: Just because it’s in writing doesn’t mean it’s true.

The petition is at 5593 signatures!
http://dissolvethecrtc.ca/

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