My column this week on the positive aspects of the CRTC’s usage based billing decision has generated some sharp disagreement, with some arguing that the pricing set by the Commission is faulty and virtually guaranteed to increase consumer prices (Search Engine covers the issue and arrives at the same conclusion, Peter Nowak does as well). The column pointed to the pricing concerns, but I think it is worth exploring the issue a bit further.

Questions about network costs are notoriously difficult to pin down. Earlier this year, I published a report that attempted to estimate the cost of a gigabyte of data and others have tried to do the same. The data relied upon by the CRTC is all subject to confidentiality and there have been concerns raised about its validity by both the independent ISPs and the incumbents (groups such as CIPPIC asked the CRTC to reconsider the issue of pricing in one of its interventions but the Commission declined). We should be clear – the lack of transparency associated with the numbers is a significant problem and must be addressed.

That said, I fear that part of the problem stems from years of limited Canadian competition with little innovation in the variety of broadband plans and services.

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