Office Document Strategies Blog

Internet Connectivity In Canada - Costs Are Increasing!

Posted by HubSpot User Default on Wed, Feb 2, 2011 @ 13:02 PM

CRTC approves new regulations requiring limits on download usage.

CRTC’s internet cap about to cost your business a lot more.

First let me start off by saying I’m mad. Not in the fit of rage sense where you regret something you do afterwards, but more in the Canadian way of the slow boil that eventually gets us upset as we realize what is happening to us.  This is what the CRTC decision to permit internet caps is doing.

Here is why:

At issue:

The CRTC approved legislation that comes into effect March 1st of this year that allows internet providers to put a cap or limit on internet usage and charge a surcharge for every additional gigabyte of internet bandwidth you use on a monthly basis.

While right now with most plans you can use unlimited amounts of internet usage time, you will soon be metered for every additional byte used much like a smart phone data plan where you pay for ‘overage’.  Metered band with for internet connectionThis favours large providers like Bell and Shaw that can now force smaller downstream internet service providers (ISP’s) that use their lines, service infrastructure, etc. to impose a cap in turn on their internet customers and collect a surcharge.  In many cases they are not being given any choice whether to charge this or not, hence forced. 

If this upsets you go to: http://stopthemeter.ca/ to learn more and sign an online petition.

How it can impact your business:

Let’s say right now you pay your ISP for a DSL internet line at $40/month. You used to get unlimited usage but now you will get 25 Gigabytes (GB) per month, and pay $2 extra per additional GB. Let’s say your actual monthly usage is 45 Gigabytes, you now get a bill for:

$40 base charge + (20 ‘extra’ GB at 20 X $2 = $40) to total $80. So your total is now $80, effectively your costs have doubled!  Not only is that a hit to your bottom line, but it also starts to make businesses look to be frugal with their internet usage in an age when internet communication is enabling and providing businesses with many efficiencies.

We're continuing our research on the implications of this new regime...check back soon as we look at all of the ways in which your business can be affected by capped internet use.  Here's some of the questions that come to mind:

What does your current contract with your ISP say about volume of use?  Have they notified you of changes coming?  Do you want to join the fight for fair internet access and use?  Is the price point for 'excess' use reasonable?

We encourage you to share this blog and comment below.

Ian Leppert

6 Key Server Checks Automatically Measure your equipment performance.


Topics: IT network, Canadian Legislation, internet connectivity in Canada, cost of internet