New rules mean slower Internet for more money

Canadians will now be spending more for slower Internet. Yes, you read that correctly. The Canadian Radio-television and Telecommunications Commission decided that dominant telecommunication companies are allowed to place usage-based billing on your Internet usage, said Jonathan Mead, coordinator of technical support services at Fanshawe College.

This means that telecommunication companies — the two main ones in Canada being Rogers and Bell — will be able to charge customers per byte outside of a customer's allotted range if that customer uses alternative sources, similar to a cell phone plan, reported Open Media on their website. Open Media is a Canadian nonprofit organization that supports open communication in Canada.

By doing this, these companies can exact control over where you get your media and ensure they're your main sources.

Rogers and Bell may seem like competitors to the consumer's eye, but they're not really, explained Mead. They are dictating the policy on these issues and hurting residential users, he added.

Corporations are not charged for going over a particular amount of bandwidth, but residential customers are charged for what they use.

For example, if you buy Internet from Rogers, you have limited download capabilities of, say, 80 GB. If you exceed that limit, you may be charged $1.25 to $1.50 per GB over to a maximum of $50. You can exceed this limit by streaming television shows, downloading high-res pictures and torrents and more. The concern is that this cap is eliminated.

"Per usage billing is taking us backwards," said Mead, adding that besides tacking on extra charges, it affects the quality.

Rogers and Bell often oversell bandwidth to certain areas. Have you noticed at certain times of the day that your Internet is slower? It's likely because either one of these companies oversold bandwidth to your neighbourhood.

Internet companies like TekSavvy have been fighting to allow for unlimited downloading but are up against Rogers and Bell and are being forced out, said Mead.

The CRTC are encouraging Rogers and Bell by supporting this tactic, which is likely due to the fact that employees of the CRTC are ex-members of these telecommunications giants, he added.

The CRTC's decision to allow usage-based billing will only make Internet service slower, yet customers will be forced to pay more. "We pay one of the highest amounts for data and we have the least speed," said Mead.

To stay aware of what this could mean to you as a customer, keep an eye on your bills, said Mead. Unlimited plans are still available for phones but not the Internet, which may mean we'll be seeing people hook their computers up to their phones.

Also check out Open Media's site to learn more about supporting the idea that limiting Internet use is preventing Canada from going forward with technology. You can find it at www.openmedia.ca.