Post Tagged with: "crtc"

Why Net Neutrality and Usage Based Billing Are Two Sides of the Same Coin

The CRTC hearing on usage based billing opens this morning with two of the big players – Bell and Open Media – both slated to appear. Since the CRTC refused to extend the hearing to retail usage based billing issues, I suspect the outcome will be anti-climatic. There may be some new rules for wholesale UBB (which will only serve to demonstrate how badly the CRTC has bungled this issue), but the broader data cap issues will remain unchanged for now.

The UBB hearing comes immediately on the heels of my report last week on two years of failed enforcement of the net neutrality guidelines, known as Internet Traffic Management practices. My report has received wide media coverage (Montreal Gazette, CBC, Wire Report, GeekTown) as well as responses from both the NDP and Liberal parties. While net neutrality and UBB are ostensibly separate issues, it is important to recognize the clear linkage between them. As the title of this post suggest, they are two sides of the same coin.

The numerous violations of net neutrality (and make no mistake, over one complaint per month when the burden is exclusively on the shoulders of individual Canadians is significant) and the near-universal use of UBB are both a function of the lack of competition within the Canadian market and the inability (or unwillingness) of the CRTC to play a more proactive regulatory function in the absence of robust competition. For the dominant ISPs, they jointly provide the means to erect barriers to competitive services by rendering such services either unusable (throttling speeds) or more costly (data caps).

July 11, 2011 — 12 comments — News

Canada’s Net Neutrality Enforcement Failure

Two years ago, the Canadian Radio-television and Telecommunications Commission conducted a much-publicized hearing on net neutrality, which examined whether new rules were needed to govern how Internet providers managed their networks. While many Internet users remain unaware of the issue, behind the scenes Internet providers employ a variety of mechanisms to control the flow of traffic on their networks, with some restricting or throttling the speeds for some applications.

The Commission unveiled its Internet traffic management practices in October 2009, establishing enforceable guidelines touted as the world’s first net neutrality regulations. Where a consumer complains, Internet providers are required to describe their practices, demonstrate their necessity, and establish that they discriminate as little as possible. Targeting specific applications or protocols may warrant investigation and slowing down time-sensitive traffic likely violates current Canadian law.

While there was a lot to like about the CRTC approach, the immediate concern was absence of an enforcement mechanism. Much of the responsibility for gathering evidence and launching complaints was left to individual Canadians who typically lack the expertise to do so. Nearly two years later, my weekly technology law column (Toronto Star version, homepage version) posts an investigation into the system that reveals those concerns were well-founded.

Although the CRTC has not publicly disclosed details on net neutrality complaints and the resulting investigations, I recently filed an Access to Information request to learn more about what has been taking place behind the scenes. A review of hundreds of pages of documents discloses that virtually all major Canadian ISPs have been the target of complaints, but there have been few, if any, consequences arising from the complaints process. In fact, the CRTC has frequently dismissed complaints as being outside of the scope of the policy, lacking in evidence, or sided with Internet provider practices.

July 8, 2011 — 29 comments — Columns

Canada’s Net Neutrality Enforcement Failure

Appeared in the Toronto Star on July 8, 2011 as Lots of Complaints, Few Consequences Two years ago, the Canadian Radio-television and Telecommunications Commission conducted a much-publicized hearing on net neutrality, which examined whether new rules were needed to govern how Internet providers managed their networks. While many Internet users […]

July 8, 2011 — Comments are Disabled — Columns Archive

The CRTC’s Over-the-Top Video Consult: Calls for Competition, Regulation, & De-Regulation

The final batch of submissions in the CRTC’s over-the-top video fact finding exercise were posted yesterday. I focused on the lack of evidence and the fear of competition for foreign content in my first post on the submissions. The latest group of submissions includes many of the biggest names – the telcos, Internet companies, and creator groups. The participants in this consultation fall into three main groups: those seeking competition, those who want more regulation, and those who want de-regulation.

What remains is the next step for the CRTC. It seems certain that there will be a full scale hearing, but the question is whether the Commission will cave to pressure from some groups for something immediately, or wait until the next new media hearing round in 2014. Given the lack of actual evidence – this has been a fear-finding exercise rather than a fact-finding one – the CRTC should surely label this a watching brief and wait until 2014.

A glance at each of the submission groups:

July 7, 2011 — 16 comments — News

The Netflix Fear: Competition (But Not the Competition You Might Think)

The CRTC’s deadline for submissions to the over-the-top video “fact finding” exercise passed yesterday. While many notable submissions will likely appear on the CRTC site today, there are enough there already to get a good feel for where this is headed. I wrote last week about the perceived bias against consumer interests in this consultation, but the reality is that the industry arguments are thus far so devoid of actual evidence that the Commission should be well positioned to leave the issue alone at least until the next new media hearing in 2014.

The submissions include the usual fear mongering about services like Netflix. The winner so far comes from the Stingray Digital Group, which warns:

Just as Napster wreaked havoc on the record label industry in the early 2000’s and played a major role in the collapse of the music retail industry, so too will the new breed of OTT music services materially disrupt licensed Canadian music services and the Canadian broadcasting system if the status quo is left unchecked.

Other submissions contains lots of rhetoric about the dangers of an unregulated over-the-top services market, but no actual evidence of real harm.

July 6, 2011 — 13 comments — News