This is something I’ve been following closely. I currently use TekSavvy as my internet service provider, and I must say, I love paying $32/month for a 200GB cap with what is essentially Bell’s DSL service. After the CRTC approved Usage-Based Billing (UBB), I got an email from TekSavvy that, starting March 1st, my cap limit would become 25GB/month. Talk about a cap hit.
If you exceeded this cap, you’d be charged $1.25/GB over the limit. That could REALLY add up, considering I generally use 100-150GB/month. They gave me the option to pre-buy “insurance” packages (i.e. extra GBs). For an extra 80GB/month it’d be about $10. That is what I selected. So my monthly bill would go up $10, and my usage limit would be slashed in half. I wouldn’t be happy with this situation, but it wouldn’t be the end of the world for me.
I could really see it affecting people and small businesses that were signed up with services that allowed UNLIMITED usage. With the new ruling, unlimited usage would no longer exist. If you’re a small business with a legit need for tons of data transfer each month, this would be a huge problem.
I have no idea if my “heavy” usage actually has an impact on Bell’s network, or if it’s just Bell trying to grab more money. From what I’ve read, I think it’s just a case of the CRTC (who apparently is made up of ex-industry executives) catering to Bell based on information provided by Bell. I’ve read that the CRTC doesn’t really know how the internet works.
This type of decision would effectively mean that these third-party internet providers would have to charge the exact same rates as Bell, and would drastically impact the ability of consumers to use services like Netflix. Streaming HD media uses a lot of bandwidth.
Anyway, I’ll be thrilled if the government actually steps up and prevents this from happening.
http://stopusagebasedbilling.wordpress.com/