Monday, January 31, 2011

Canada Considers Usage-based Broadband Billing

Last week, the Canadian Radio-television and Telecommunications Commission decided to require usage-based billing rates for an incumbent telephone carrier's wholesale residential Gateway Access Services or equivalent services, and for an incumbent cable carrier's third-party Internet access services. These usage-based billing rates are to be established at a discount of 15 percent from the incumbent carrier's comparable usage-based billing rates for its retail Internet services.

The ruling follows a CRTC decision last October, where it by approved a proposal by Bell Canada to introduce usage-based billing for their wholesale Residence Gateway Access Services (GAS).

Several smaller ISPs have posted notices to their subscribers stating that these decisions will force them to rescind unlimited surfing plans and impose tight bandwidth usage caps.

Canadian Prime Minister Stephen Harper has ordered a review of the decision.

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