Canadian Government Reverses Usage-Based Internet Billing On Small Service Providers

Posted Feb 3, 2011

The Canadian Radio-television and Telecommunications Commission announced recently that they wanted to impose a usage-based Internet billing on small service providers. But the Prime Minister and minister of Industry will reverse the decision unless the CRTC does so themselves. CRTC Chair Konrad von Finckenstein is also being called in front of the House of Commons industry committee to explain the decision.

This issue has angered many Canadians and people have rushed to sign petitions asking the government to reverse the decision. ?Frankly, a decision like this is clearly not in the best interest of consumers,? said a senior official in an interview with The Star. ?This is a bread-and-butter issue.?

This ruling affects the wholesale business of major ISP companies that sell a certain capacity to smaller resellers. The bigger companies are required to lease bandwidth to the smaller networks in order to encourage competition.

The CRTC believes it is fair because it would enforce consumers to pay more if they use the web more than just surfing and using e-mail. However businesses and consumers have a higher reliance on the Internet to download videos and software nowadays.