Michael Geist

Two of the leading issues before the CRTC – over-the-top video and usage based billing – have come together as Shaw has announced plans to launch a new online movie service designed to compete with Netflix. Subscribers to the service, which will cost $12 per month, will be able to watch on their TV and computer. Most notably, Shaw says that the service will not count against subscriber data caps. Given the problems users of over-the-top video services have encountered with the caps, the Shaw approach places the spotlight on the CRTC net neutrality guidelines and undue preference rules. [Update: Shaw now says that watching movies via the Internet will count against user caps]

Last week I examined the failure to effectively enforce the guidelines, however, this case raises the question of whether Shaw is violating the rules by offering an over-the-top video service that does not count against a user cap while traffic from competitors such as Netflix does. The obvious complaint will be that Shaw is giving itself an undue preference in violation of Section 27(2) of the Telecommunications Act:

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