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My View on HSI Caps +The Recent CRTC Decision

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The ruling by the CRTC on capping internet connection's is on the hot seat with outrage from Canadians from coast to coast. Canadian Internet Service Providers have made a competition out of offering faster speeds for a while and they've gotten to the point of where the numbers game has finally caught up with them.

Our local cable provider, Eastlink, states on their website “Blazing fast speeds up to 100Mbps”. They also have a slower service, “High Speed Extreme 15”, which is what I have.

Bell Aliant advertises their similar high speed package as “Bell Aliant High-Speed Ultra” with the sub heading, “High-Speed Ultra is our dedicated High-Speed service with speeds up to 7.0 Mbps.”

If we take a look at the imposed caps already applied on the Eastlink 100Mbps service, the maximum you can download is 250GB a month. To put this into perspective, Eastlink offers 100Mbps but if you use even 1/100th of that on a constant basis, you're going to be financially penalized for using more then your monthly allotment. How a company could ever sell 100Mbps but only allow you to use less then 1/100th of that. Working the figures out in terms of an hourly basis. If you utilize Eastlink's 100 Mb service fully for 6 hours a month (Avg month has 720 hours), you're going to incur additional financial charges.

This is a great example of how our telecommunications companies are using the numbers game to help bring on new customers but not allowing the customers to actively fully utilize the specific service.

Comparing that 100Mbps service to my 15Mbps, I can download an unlimited amount of data without being penalized. In fact, I can use a lot more then 250GB in a month and not be charged any overages with the slower service, whereas someone with the faster service who would be charged.

One could speculate that the reason for this push to change towards per usage billing is because our telecommunications companies have realized that they are milking Canadians when it comes to cell phone bills. The usage based billing being utilized by our cellular carriers is a cash cow and telecommunications companies want to transfer that over to our wired based internet services. Just look at the overage rates companies will be charging. $1-$2.50 per extra GB downloaded? Sure, that would be more reasonable if my clock said 2002. But it doesn't. Bandwidth is cheap costing pennies per GB.

As the amount of people who utilize landlines and cable television decrease, it is also directly impacting our telecommunications companies and hurting their revenue as more and more users turn to Voice over IP solutions such as Skype or video applications such as Netflix, Apple Tv or Google TV.

So lets face it, the telecommunications companies have fought for customers by offering the fastest speeds available. now they want to take a step back and not allow Canadians to utilize it without paying extra. Almost like they never thought of the consequences for offering the faster speeds.

Those big fancy flashy websites will no longer become just another flashy creative item on your screen. Users will be more concerned with the amount of transfer they use and as such will be worried about visiting the highly creative designed sites that has a large emphasis on video & graphics.

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