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Indie ISPs call for more competition

Indie ISPs call for more competition

By:  Grant Buckler  On: 29 Nov 2011 For: Network World Canada Creator

A panel on internet traffic management at the Privacy and Internet Security Congress debates the secrecy of the big telcos' billing models and “the kind of arrogance we need to move away from”

OTTAWA – Though the Canadian Radio-television and Telecommunications Commission (CRTC) has ruled large telecom network operators can’t charge smaller independent Internet service providers for the amount of capacity their customers actually use, the debates don’t end there.

At a panel on internet traffic management at the Privacy and Internet Security Congress here Monday, there was little argument about the CRTC’s ruling that large carriers must charge either a flat fee for the use of their network or a rate based on the amount of capacity other ISPs choose to have available. But there were some concerns about how costs are determined and about the need for more competition in Canadian Internet service.

Panelist Len Katz, the CRTC’s vice-chair of telecommunications, explained that the commission decided a model in which retail ISPs choose how much capacity to pay for each month “most closely resembled how all ISPs have to manage and invest in their networks.”

In its decision earlier this month, the CRTC allowed the large ISPs who run their own networks and sell capacity to smaller competitors for residential internet services to use that rate model or a simple flat fee.

It ruled out the usage-based billing model it had earlier told Bell Canada it could use, a decision the federal government asked it to review. That plan would have meant smaller ISPs paid based on their customers’ actual bandwidth usage.

“As you may recall,” Katz said, “our decision led to some loud and negative reaction. We listened to those concerns and took steps to address them.”

The other panelists agreed the new CRTC decision mainly got it right – though notably, there was no Bell representative on the panel. Telus Corp.’s director of broadband policy, Craig McTaggart, said his company has not used usage-based billing and was happy to see the CRTC decision permits it to continue with a flat-rate approach.

But McTaggart also said rapid growth in bandwidth demand is challenging ISPs. “You can only squeeze so much out of existing infrastructure and then you have to make an enormous investment,” he said.

McTaggart said services like file-sharing use the Internet in ways its inventors didn’t anticipate, greatly increasing the need for bandwidth, while competition prevents ISPs from raising prices.

Steve Anderson, national co-ordinator of Open Media.ca, which bills itself as a “non-profit organization that safeguards the open and affordable internet,” called McTaggart’s reference to file-sharing “the kind of arrogance we need to move away from.”


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grant buckler Grant Buckler is a contributor to the International Data Group (IDG) News Service, which publishes global technology stories from bureaus around the world to more than 300 publications in more than 60 countries.
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