Why The CRTC Could Slow Technology Growth In Canada

A ruling by the CRTC has the potentially change the landscape and stump growth for consumer technology as well as business.  As it currently stands there are internet service providers that offer a no bandwidth or unlimited internet usage.  Fair use net policies exist a reasonable solution for when the network is stressed or being bombarded seems to be a reasonable compromise for most users.  The new net-usage policy is based on how much bandwidth you consume.

For users that surf and research topics of interest and for email will not be impacted as much.  The rest of internet users that watch videos online, stream and download music will be affected adversely.  Internet capping of data rates and usage could affect how technology is used.   Higher internet usage fees means that using technology such as your PC, net books, smart phones and iPads can rapidly drop if bandwidth usage is capped.

Services such as Netflix and TekSavvy that depend on internet usage can be influenced in a negative direction if usage is capped.  Be prepared to pay more for monthly internet packages and as you scale up.

One of the problems that result will be that of business users that rely on VOIP for their global communication strategies.  We recently received an email that we have consumed over 75% of our monthly bandwidth usage which was very surprising as we don’t stream or watch many videos online and this month not much if any streaming has occurred.   It then occurred to me that Skype and VoIP are included in bandwidth usage.  How will this impact on Vonage users and will this change the way Vonage will be billed and will users revert  back to phone service for their business communication needs ?   How much will your cell phone package go up a month if that usage is capped, business users should brace themselves as their cell packages will increase.  Business users that use the net from their smart phones will definitely be impacted.  Will paying more for internet surfing impact the way iPads are used in Canada thus limiting adoption, how much will small business owners suffer with these new regulations ?   This one aspect of this decision.

Another major impact that may result is the adoption of cloud computing or SaaS for vendors.  The products of cloud and SaaS vendors can be impacted especially for small businesses who are more prone to adopt cloud based technology.  If you are currently using Salesforce, Plex, Netsuite another ERP , CRM or any other enterprise software that is cloud/SaaS based may be in for a surprise in their upcoming bills at least in Canada.  This constitutes bandwidth usage so will this influence cloud adoption for enterprise software adoption and by how much especially with services such as backup/storage services, IT as a service and other outsourced services could possibly be affected and what about gaming ? Will sales of video game consoles decrease because not only will games have to be purchased but now online usage will be charged based on usage especially length of time when joining gaming communities and participating in perpetual forums.

Something to think about when going cloud; another software evaluation criteria to factor in the TCO equation when comparing software. Incidentally, there is an online petition circulating to  overturn this ruling.  Openmedia.ca has accrued over 100 000 signatures so far to overturn this ruling.  Feel free to petition this decision if this new ruling seems unfair. Thank the CRTC for giving the internet companies another way to overcharge their customers.  Chime in and let your voice be heard,

Eval-Source is an Analyst/Consulting consulting firm that offers enterprise software evaluation, cloud computing consulting, business process optimization and technology planning for organizations. Our innovative professional services combine to make your life easier whether it is to acquire enterprise software  or provide you with fact – based information to match your business with IT and to add critical decision support to your technology investments using the Tru-Eval  system.  Follow our blog at www.eval-source.com/blog or on twitter @eval_source or our site

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Jim Love, Chief Content Officer, IT World Canada

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