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    CRTC Investigation Finds Rogers Violated Net Neutrality Rules

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    Friday January 20, 2012
    The CRTC has written to Rogers Communications to advise that its investigation has concluded that the company violated the Internet traffic management rules (better known as net neutrality rules).  The letter notes:

    Based on the preliminary results of our ongoing investigation, Commission staff is of the belief that Rogers Communications Inc. (“Rogers”) applies a technical ITMP to unidentified traffic using default peer-to-peer (“P2P”) ports. On the basis of our evidence to date, any traffic from an unidentified time-sensitive application making use of P2P ports will be throttled resulting in noticeable degradation of such traffic.

    The CRTC notes that prior approval is required for degradation of time sensitive traffic and gives Rogers two weeks to rebut the evidence or become compliant with the law. The case highlights a newfound willingness by the CRTC to investigate and enforce the net neutrality rules with full research into the effect of Rogers' traffic shaping practices.  This represents a major step forward as it sends a clear message - after several years of doubt - that the CRTC is prepared to enforce the net neutrality rules.  Given the recent announcement that Bell is abandoning traffic shaping, the question is whether Rogers will follow suit or drag out the process by facing CRTC enforcement and further user complaints.

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    CRTC's Net Neutrality Rules in Action: Bell To Drop P2P Traffic Shaping

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    Tuesday December 20, 2011
    Bell advised the CRTC yesterday that it plans to drop all peer-to-peer traffic shaping (often called throttling) as of March 1, 2012.  While the decision has been described as surprising or as quid pro quo for the usage based billing ruling, I think it is neither of those. The writing was on the wall in October when Bell announced that it was dropping the traffic shaping for wholesale traffic, citing reduced network congestion from P2P. At the time I wrote that the Bell move:

    raises the prospect that Bell's current throttling practices may now violate the CRTC's Internet traffic management guidelines. While Bell says its congestion has been reduced, its retail throttling practices have remained unchanged, throttling P2P applications from 4:30 pm to 2:00 am.  Given the decline in congestion, a CRTC complaint might ask whether the current throttling policy "results in discrimination or preference as little as reasonably possible" and ask for explanation why its data cap policies "would not reasonably address the need and effectively achieve the same purpose as the ITMP."

    The CRTC Internet traffic management practice policy, often referred to as the net neutrality rules, make it clear that the Commission prefers network investment and "economic ITMPs" (ie. usage charges) to traffic shaping. The Bell letter to the CRTC addresses this directly, citing its network investment, the use of economic ITMPs, and declining P2P file sharing as a proportion of network traffic as the reason for the change. Given the CRTC rules, Bell had little choice but to drop traffic shaping since it was increasingly difficult to justify given network and marketplace developments.

    The big question is now how much longer Rogers will maintain its throttling practices. Most of the larger Canadian ISPs no longer traffic shape (Cogeco seems to have quietly dropped it after maintaining just two years ago that it had no other alternative), leaving Rogers as the outlier. Moreover, the company is currently facing an enforcement action for violating the CRTC ITMP rules with respect to the impact its throttling practices have had on online gaming.  The company might try hold out for awhile, but given the network congestion profile in Canada and CRTC pressure to address its net neutrality violations, it seems likely that it will follow Bell's lead or face further complaints that its practices do not comply with CRTC policy.
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    Rogers Throttling Complaint Headed to CRTC Enforcement Branch

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    Friday October 28, 2011
    The ongoing complaint against Rogers by Canadian Gamers Organization against Rogers over its throttling practices is now headed to the CRTC enforcement branch. The precise nature of the enforcement remains unknown.
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    Rogers Astroturf Lobby Campaign on Spectrum Foreshadows Battle over Wireless Broadband Competition

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    Monday September 26, 2011
    The Rogers astroturf lobby campaign against a spectrum set-aside, which sneakily uses people interested in a notification on when LTE may be available in their market, foreshadows a major battle over the rules on the 2012 spectrum auction. Much like the 2007 battle over the AWS auction, the incumbents will argue that the market is already sufficiently competitive and that any set-aside will unfairly advantage new entrants. The 2007 battle included submissions from Rogers and Bell that insisted that Canada was already "extremely competitive" and that consumer prices for wireless services very low. For example, Rogers argued:

    Canadian consumers are very satisfied with their choice of Canadian providers, pricing plans and technology options. Consumers are the first to object in the face of poor competition among service providers, yet surveys indicate the exact opposite sentiment.

    The company added that "contrary to many statistics that are used and quoted irresponsibly, Canadian consumers fair very well when compared to other countries. Canadian carriers offer
    some of the most competitive rates in the world."

    The government rightly rejected the incumbent arguments and established a set-aside that led to new entrants such as Wind Mobile and Mobilicity.


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