So earlier today we all got our pitch forks out over the new CRTC ruling which says big internet companies can charge us whatever the hell they want to if we want to go on the internet. When cable companies own the internet companies it is an evil combination it seems. Shortly before Netflix announced its move to Canada the cable companies which are the same as our internet providers let it be known we would start paying for the bandwith we use. Translation, no more unlimited internet access. Summed up this means if you want to stop paying for cable to switch to Netflix they will get you paying in a completely different way. One of our readers wrote a very detailed comment that sums things up nicely. Here is what Yapper wrote ( his numbers and data not mine ).
The entire issue is a scam designed and perpetrated by ISP’s to part you from your money to enrich their shareholders. The cost of a single GB of data flow to the ISP’s is less than 3 cents. When you add in infrastructure costs and other overhead you can probably bump this number up to 10 cents. Shaw is currently charging $37 (in BC) for basic high speed internet with a 60GB cap which is costing them about $6. That’s about a 500% mark up or $31 profit every month from a basic high speed customer.
Now they want to charge an additional $2/GB on everything over your 60GB cap. That is a 2000% markup of pure profit. I don’t have a problem with companies making a profit but I do have a problem with them making THAT much profit. They are not hurting for money and they have no business charging $2/GB overcap charges. 20-25 cents would be more reasonable. They recently reduced the cap limits too so they can make even more money faster. It’s simply a cash grab in a country where we already pay some of the highest broadband and wireless rates in the world and the CRTC allows this.
I wont go into alot of detail since I already wrote a very lengthy article on the CRTC Bandwith situation which you can read. As I do my own homework on how we can fight this insanity I came across the idea of twittering Tony Clement the MP in charge of Industry who to my understanding has sway over the CRTC rulings. Act.ly has an online twitter petition where with a click of a button a tweet will be sent to Tony Clement which will express your displeasure over the new Bandwith rules.
As much as we like to rant and rave together on this site make sure that on top of ranting you join the Twitter Petition. Please be sure to do so but also share this with your friends. If you and 3 friends tweet Tony and everyone else does the same he will have a very hard time ignoring that many Canadian voices.
Update: Posted today on Tony Clements Official site is the following statement!
“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.
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
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.
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.”
Lets see if the Harper Government is truly interested in what Canadians think and doing what is clearly the right thing by over turning this new CRTC ruling!