Decision allows internet wholesalers to charge based on speed, not volume
CRTC rejects Bell usage-based internet billing planSmall companies selling internet services will likely be paying for download speed under a decision announced by Canada’s telecommunications regulator.
The companies, which buy their internet services from larger established providers such as Rogers and Bell, were fighting an application to the CRTC by Bell to charge more to wholesale customers.
The CRTC's decision, announced Tuesday, gives established providers two options for charging independent internet service providers — a flat rate or a rate based on capacity and the number of users.
Bell had asked to be able to charge based on the total volume of internet data used by its wholesale customers. The regulator rejected that model.
The capacity rate model charges based on the speed of the service — meaning the small ISPs will be paying for the size of the pipe, not the amount of data that flows through the pipe. And it means small ISPs will have to pay more to provide faster internet to their customers.
The CRTC requires Bell and Rogers to allow the smaller companies to use their internet infrastructure and regulates the price which they can charge for it.
The regulator initially approved Bell's pitch to charge fees for going over set bandwidth limits, but the Conservative government pushed back soon after the January 2011 announcement.
Prime Minister Stephen Harper favoured a review of the decision, and Clement announced on Twitter that the government was asking the CRTC to take another look.
Clement 'was right'
Konrad von Finckenstein, chair of the CRTC, says the regulator made a mistake in deciding last year to allow Bell to raise its prices for independent service providers.
"Our original decision was clearly not the best one. It was wrong and it was pointed out by a lot of people, including Minister Clement. He was right. We have today fixed it, we have made this new decision," von Finckenstein said.