metered-billing

More Broadband Competition, Mr. Clement?

By Mark Evans in ILEC News, Analysis 1 Comment Tags: , , , ,

Amid the uproar about the CRTC’s flawed and misguided decision to allow metered-billing for broadband usage in Canada, the spotlight is finally started to shine on the fact one of the big problems in Canada is the lack of broadband competition. At best, most markets have a cozy oligopoly – great for the ISPs, bad for consumers.

It was surprising to see this quote in the Toronto Star for Ministry of Industry Minister Tony Clement amid speculation the federal government could overturn the CRTC’s decision.

“We feel very strongly that we need more competition, we need more consumer choice, we need more choices for small business owners and operators and our entrepreneurs and our creators.”

So, Mr. Clement, how are you going to get more broadband competition in Canada? How are you going to change a regulatory and competitive environment that hasn’t worked over the past decade?

Are you going to force the ISPs to play nice with companies that would like to use their networks – something that hasn’t worked despite rulings by the CRTC?

Are you going to allow foreign competition into Canada to really shake up the marketplace – something that would shake up the Telus, Bell, Shaw, Rogers cartel?

While more broadband competition is a great idea, making it happen is another thing altogether. It makes for a great sound bite and great political/election fodder when you talk about “more broadband competition” but talk is talk unless you’re prepared to walk as well.

So the $64,000 question is: Mr. Clement, what’s your plan to attract more competition?

Canada Needs More Broadband Competition

By Mark Evans in ILEC News, Analysis 2 Comments Tags: , , ,

So it looks like metered billing could become a reality in the Canadian broadband market, which will give ISPs, who already enjoy an oligopoly, another way to make even higher profits as they take advantage of the growing demand among consumer for bandwidth so they use online services such as video and games.

The real issue isn’t metered billing but the lack of competition within Canada’s broadband market. In most markets, consumers are lucky if they have two choices – the cable or telephony company. This means competition is, at best, light because there’s no need to compete when all you have to do is match what the other guy is doing.

While Canada’s telecom regulator, the CRTC, has made some half-hearted attempts over the past decade to encourage cable and telephone companies to offer wholesale access to other ISPs, the market has not flourished.
The small number of ISPs using wholesale services have established a modest foothold by, in part, offering unlimited bandwidth – something will be killed if the CRTC’s metered billing decision is established.

The troubling reality of Canada’s Internet landscape is how unprepared the government and the CRTC has been for the Internet’s emergence as the way to communicate, consume services and do business. We’re still struggling with major decisions such as whether the Internet should be regulated or not. There’s no regulation of broadband services so the ISPs can pretty much do what they want.

And while the federal government has bent over backwards to encourage more wireless competition, little has been done to stimulate more broadband competition. It has left the market with few choices and, as a result, innovation and competition have not flourished. In Canada, broadband is seen as an unregulated utility rather than a valuable service that will be a more essential part of Canada’s economic future.

While metered billing will likely become a political hot potato because it’s so consumer-friendly as we head into a federal election later this year, it shouldn’t overshadow the dearth of broadband competition. It has been something that has been ignored for years but it will come home to roost as broadband becomes an essential service in our personal and professional lives.

If the federal government were forward-thinking, it would create a new policy to encourage more broadband competition. It would be a bold and aggressive move because it could mean introducing policies that would force the existing ISPs to provide better and more wholesale access to networks in which they have invested hundreds of millions of dollars. It could mean opening the doors to foreign companies so we get new well-financed competitors willing to move into an oligopolistic market.

At the end of the day, more broadband competition is crucial is Canada is looking to thrive globally. Metered billing is just a symptom of what’s wrong with the market but it should be used as an excuse to focus on a much bigger and more important issue.

Links:
- Michael Geist providing more details and insight into what the CRTC’s decision means.
- Anti-UBB, include ways to get involved in stopping metered billing.
- TechCrunch – “Say Goodbye to Innovation”

What Tony Clement Really Meant About Broadband

By Mark Evans in ILEC News, Analysis 3 Comments Tags: , , , ,

Tony Clement, Canada’s Minister of Industry, issued a statement yesterday about a CRTC decision that will allow the major broadband ISPs to introduce metered Internet usage – something that could line the pockets of the ISPs but damage innovation and new online services in the process.

In the spirit of the glass always being half-full, I have taken the liberty of translating Mr. Clement’s statement with an optimistic spin.

Clement: On Tuesday, January 25, 2011, the CRTC announced its decision to allow wholesale and retail internet service providers to charge customers for exceeding the monthly usage of data transfer permitted with their broadband Internet package. This will mean, for the first time, that many smaller and regional internet service providers will be required to move to a system of usage-based billing for their customers.

Translation: Darn, darn, double darn. The CRTC has made another dumb decision. When will those telecom/nerd bureaucrats get something right. Last year, they almost destroyed our plans for more wireless competition by poking around the foreign ownership of Wind Mobile before I had finally step in and fix things. Now, they want to screw small ISPs just trying to make a buck offering good service and lots of bits and bites (which also happens to be one of my favorite snack foods).

Clement: I am aware that an appeal has been initiated by a market participant. As Canada’s Industry Minister, it is my job to help encourage an innovative and competitive marketplace, and to ensure Canadian consumers have real choices in the services they purchase. I can assure that, as with any ruling, this decision will be studied carefully to ensure that competition, innovation and consumers were all fairly considered.

Translation: The good news is the ISPs skewered by the CRTC have decided to appeal. This gives me time plenty of time to figure out a master plan to counter-attack the decision while the appeal works its way through the system. Then, I can save the day (again!) by proposing a solution that makes everyone look good, especially my party.

Clement: The Harper Government is committed to encouraging choice and competition in wireless and internet markets. Increased choice results in more competition, which means lower prices and better quality services for Canadians. We have always been clear on our policies in this regard and will continue on this path.

Translation: You know, we spent so much darn time getting more wireless competition that we completely forgot about the broadband oligopoly that exists. Our bad. You gotta believe encouraging more broadband competition would be a kick-ass part of a election platform ’cause it’s so voter-friendly. And, it will support that innovation/Web 3.0 thing-a-jig that everyone keeps blabbing on about.

Clement: Our Conservative Government is focussed on the economy and creating a positive environment for job creators and business to flourish. Canadians can count on us to do what is in the best interest of consumers.

Translation: Hey, Rogers, Telus, Shaw, Videotron, Bell and the other ISPs making a killing from broadband service, don’t worry too much. We’ll take care of you too ’cause, after all, we’re pro-business and we’ve got an election to win.

More: For anyone who wants to get involved in the fight about metered Internet usage, check out the Anti-UBB Web site.

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