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Alternative views on usage-based billing

by Blogger on 01-31-2011 10:14 PM

3267164904_5840eafb3d_b.jpgThere is no doubt that usage based billing (UBB) is the hot topic among Internet users right now. While I don't want to pay more for Internet access than anyone else, I also don't think we're looking at the problem in the right way, trying to address the real issues at hand, nor pushing for changes that might help.

 

Yep, this is going to be the alternative view on UBB.

 

Let's, first, be clear that when you sign up with Shaw, Telus, Bell, or Rogers you are signing up for a service from a private company, not the government whose goal in life is to make a profit. Also Canada does not, unlike Sweden, have broadband access set as a fundamental right (personally I think the Swedes are onto something there). So there is nothing about having kick-ass Internet access that is a right for you and I. The issues we're grappling with are First World Problems.

 

Now let's get to some of the issues at hand. On the surface I don't see a problem with companies saying "you are allotted this much bandwidth for downloads, go over it and you'll pay extra." This is how cell phone companies have been offering data for years and we learn to live with it. Honestly, we've had the threat of download limits hanging over our heads for years it's just that they were rarely enforced. Essentially, we've been spoiled. This isn't to say that there are serious problems with how things are going right now. It's these problems that we should be screaming about...

  1. Anti-competitive issues. Bell, Shaw, and Rogers are treading in dangerous waters right now. Netflix is one of the most cited potential victims in a UBB scenario. Having $8/month all you can watch video doesn't do much for you when it starts costing an arm and a leg to watch more than a few movies. On the other hand, Shaw and Rogers have been promoting their video on demand services which you can watch through your cable box or online. Yeah, so if I watch a ton of movies through Shaw (my cable and Internet provider) and go over my monthly limit, will I be charged? For Shaw's sake, I certainly hope so. Competing online video services is only one part of this situation, what about the broadcast networks all three of these folks own? What about people watching shows on demand through them? Will Shaw only enforce limits if we're using non-Shaw services? Yeah, this is a much, much stickier question than whether or not I should be billed for downloading a ton of games.

  2. We don't have the tools to manage or monitor our bandwidth usage. According to what I've been able to find, I can't check how much bandwidth I've used (according to Shaw) through my online account management on the website. This is a huge problem. With my cell phone I can check my minutes used and remaining, date used and remaining whenever I wish. If I'm running close to the limits I can choose to change my behavior to avoid additional charges. Shaw, specifically, says that they are going to give people warnings and inform them when they go over so they don't expect people to start getting charged for at least a few months from now. Not good enough. I want to know month-to-month on my statement how much bandwidth I've used and be able to check on a day-to-day basis online to see where my usage is. It isn't fair to offer a level of service included, but charge if you exceed it, but not let them check where things are in the interim.

  3. The usage limits are too low. This is directly related to point 1 and inspired by an opinion piece I read from the Vancouver Sun this morning (on my iPad, downloaded over the Internet). I subscribe to High Speed Extreme which is listed at $30/month (for six months) and am allowed 100 gigs of transfer a month. The next step up is Warp at $100/mo, but only 150 GB of transfer. Yeah Extreme gets you 15 megs down/1 meg up and Warp 50 megs down/3 megs up but only 50 gigs more transfer allocated? What? Oh and btw if you have the "High-speed" option that gives you 7.5 megs down and 512 K up...yeah you get 60 gigs a month of transfer. Oh and don't forget "transfer" includes downloads and uploads, so if you use torrents to transfer that large file...well you really are getting it coming and going.

See, the issues aren't as clear cut. Personally, I think that if you use a lot of bandwidth you should pay for it. Shaw isn't offering me "unlimited" Internet, sure it's been de facto unlimited since Shaw rarely (if ever) clamped down on bandwidth hogs, but if you look at what you're pay for, it isn't unlimited. The issues around third parties are pretty complex as well. If you lease the line, but offer a service that makes it hard for the owner to maintain an acceptable level of service for other customers...don't you think that's a problem?

 

I do, however, completely agree that affordable, high-speed Internet access is essential for Canada's economic growth and competitiveness. We used to lead the world in this, and we can again. We have some of the sharpest minds in the world and some of the best business ideas going, but if we have sub-standard Internet access; we're hooped. What needs to happen now is:

 

  • Net neutrality enshrined into law
  • Providers need to give us the tools to manage our bandwidth use (and not by being forced to download their tool to do it)
  • Bandwidth allocations have to come into line with how Canadians want and do use the Internet on a daily basis.

Maybe then we'll have the kind of Internet access we all want.

 

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Comments
by Exalted Expert / Community Ambassador on 01-31-2011 10:43 PM

Telus offers the ability for me to see how much I consume each month.  I average 3gb a month.  I wonder if there's a discount for those of us willing to reduce the cap further.

by leemathews on 02-01-2011 04:24 AM

We're talking about UBB being anti-competitive, but we're only discussing the Internet side of it?

 

Bell stands to benefit BIG TIME via its other businesses -- CTV and ExpressVu -- from UBB as well. If Netflix and other similar services aren't as affordable anymore thanks to Scrooge-like caps, where are they going to turn? TV and satellite. Bell should be throwing a party for the CRTC, because they've handed them the keys to Profittown.

by Trusted Expert / Community Ambassador on 02-01-2011 05:01 AM

Sony and Microsoft stand to lose from this as well - many people download a lot of items from the Xbox Live Marketplace and the Playstation store (eg. game add-ons, demos, avatar items, themes, videos, etc).  Many game add-ons are in excess of 1GB, as well as many demos.  If we get into UBB, people are going to start being a lot pickier about what they choose to download from these sources.  Too bad, because I really like downloading game add-ons and demos, but I don't feel like paying twice for one item (cost of the item, plus the bandwidth cost).

 

JB 

by Blogger on 02-01-2011 04:17 PM

From what I've read XL no there will be no discount for those who use less. You simply pay for the same small internet package you have always paid for. If you're under what is allowed...well...they still take your cash.

by Caracticus on 02-02-2011 11:57 AM

I have more than a few problems with the CRTC ruling and bulk-rate billing.

 

1) Billing can be done down to the byte, rounded up to the nearest penny. It doesn't have to be measured in coarse measurements like megabytes and gigabytes.

 

2) All billing should be usage based, so smaller users don't have to pay for bandwidth they don't use. It's simple theft to charge someone for a product or service that is not delivered.

 

3) The difference in usage-based fee for a small volume user (less than 5 GB per month) and a 200 GB per month user should be very small. Say, 50 cents per gigabyte under 10 gigabytes per month, and 10 cents per gigabyte for larger volumes. Not the other way around, and not 10 DOLLARS per gigabyte at low usages and a fraction of a cent per gigabyte at high "bulk" volumes.

 

The pricing strategy is based on the notion that people will NOT use all the space "allocated" to them by way of their plan, and when they do, it's a problem for the carriers because they don't have the capacity to back up all the pre-sold throughput. Why is this even legal? If ALL users on the system tried to use the system simultaneously and tried to use their service to capacity, it would bring the system to its knees... yet the carriers are allowed to do this, and are allowed to sell speed AND capacity they can't realistically deliver.

 

They are allowed to lie, misrepresent, overcharge, and overPROFIT. No one will stop them unless we do.

 

I have a business phone line with Bell, (my VERY last service with them) and I'm looking into having it moved to one of the new mobile providers (Mobilicity or Wind) and then it will be GOODBYE FOREVER (ironically, today I just got a 'come back to bell!' mail. If it were an email I'd reply and tell them exactly what I think of their company with their hardcore UBB lobbying... but I am committed to speaking with my wallet, leaving Bell behind me forever. I will NOT forget their UBB lobbying outrage, ever. They have lost my business permanently. No cut-rate, low cost, high value service could ever get me to go back to them, and I will continue to support TekSavvy as a true alternative to the corporate extortion perpetrated by these scum.

by Sonny_Oldner on 02-03-2011 08:23 PM - last edited on 02-04-2011 12:47 AM by Moderator

If they are to follow this route and eventually push through with it, then they have to come up with a lite-plan for those who don't consume much bandwidth (such as XL for instance) especially in the current economic situation.

 

Sonny O.