CRTC offers compromise on usage-based billing
Small companies selling internet services will likely be paying for download speed under a decision announced by Canada’s telecommunications regulator.
The companies, which buy their internet services from larger established providers such as Rogers and Bell, were fighting an application to the CRTC by Bell to charge more to wholesale customers.
The CRTC’s decision, announced Tuesday,Longchamp Outlet gives established providers two options for charging independent internet service providers — a flat rate or a rate based on capacity and the number of users.
Bell had asked to be able to charge based on the total volume of internet data used by its wholesale customers. The regulator rejected that model.
The capacity rate model charges based on the speed of the service — meaning the small ISPs will be paying for the size of the pipe, not the amount of data that flows through the pipe. And it means small ISPs will have to pay more to provide faster internet to their customers.
The CRTC requires Bell and Rogers to allow the smaller companies to use their internet infrastructure and regulates the price which they can charge for it.
The regulator initially approved Bell’s pitch to charge fees for going over set bandwidth limits, but the Conservative government pushed back soon after the January 2011 announcement.
Prime Minister Stephen Harper favoured a review of the decision, and Clement announced on Twitter that the government was asking the CRTC to take another look.
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