interweb freedom

(formerly Stop Usage Based Billing)

Posts Tagged ‘rates’

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: 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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