Post Tagged with: "crtc"

CNOC on the CRTC UBB Review: It’s Re-Arranging Deck Chairs on the Titanic

The Canadian Network Operators Consortium, which represents two dozen independent ISPs, has asked the CRTC to expand the scope of its usage based billing consultation. Rather than limit the review primarily to UBB, CNOC says the review should:

include a comprehensive review of the regulatory framework applicable to all wholesale high-speed access services (â€œWHSASâ€) provided by incumbent local exchange carriers and cable carriers (collectively â€œincumbentsâ€) to their competitors and to include from the outset, in the expanded proceeding, an online consultation and a public hearing, and certain additional procedural steps.

The letter makes it clear that CNOC is seeking nothing less than a complete overhaul of the regulatory framework for broadband competition in Canada. The organization argues that “incumbent wholesale high-speed services, including the last-mile access, constitute the broadband platform that competitors need to offer almost all telecommunications and broadcasting services to consumers.” It adds:

February 12, 2011 — 25 comments — News

Saving the Best for Last: Bell’s Network Congestion Admission

As is often the case with House of Commons committee hearings, yesterday’s Industry Committee hearing on usage based billing saved the best for last. Addressing a specific question from the chair about the separation of IPTV and Internet services on Bell’s network, Bell’s Mirko Bibic responded:

There is a copper loop that goes from our Central Office to the home and all data travels on that pipe so it’s Internet traffic, it’s television traffic, it’s actually voice traffic, long distance traffic, but that’s not where there are general congestion issues. The real issue is when you get to the Central Office and you go behind that to the general Internet, FIBE TV is completely different.

Bell’s comments are noteworthy since they confirm that there is no congestion in the “last mile” – the connection between the user and the so-called Central Office. At the moment, Bell aggregates the data from both its own retail customers and independent ISPs at this stage (which it says causes the congestion necessitating traffic shaping and UBB), though the independent ISP subscriber traffic later goes to the independent ISP before heading to the Internet. The “congestion problem” is therefore not at the last mile nor at the Internet – it is in the intermediate stage between the two.

February 11, 2011 — 62 comments — News

The Usage Based Billing Consultations: What the CRTC and the Government Should Do Next

The controversy over usage based billing has shifted from public frustration and demands for change to several public consultations. Yesterday, the CRTC posted its consultation notice, which gives Canadians until April 28, 2011, to provide their views. Since the CRTC asks whether oral hearings are needed, it seems likely the issue will not be resolved until the summer or early fall at the earliest. In addition to the CRTC consultation, the Standing Committee on Industry continues its investigation into the issue with hearings this week (independent ISPs appeared yesterday, Open Media, Bell, and Shaw are up Thursday) and Shaw Communications announced that it is freezing the implementation of usage based billing pending a customer consultation on the issue.

As the issue continues to attract attention and public comment, there has been no shortage of discussion about what the CRTC and federal government should do, how foreign investment fits into the equation, and whether action is needed on retail usage based billing practices that affect millions of Canadians with incumbent providers such as Rogers and Bell. Last week, I had several long posts about the issue and why there was reason for concern in the aftermath of the CRTC’s appearance before the Industry Committee (here, here, and here). This post attempts to unpack some of the UBB issues by discussing potential solutions including how to address the narrow issue of wholesale UBB, foreign investment, fostering greater competition, and next steps on current retail UBB practices.

February 9, 2011 — 54 comments — News

CRTC and Shaw Launch UBB Consultations

The CRTC and Shaw have both announced public consultations on usage based billing. The CRTC notice invites public comment on its UBB policy with a deadline of April 29, 2011 to file comments (earlier if you wish to participate and receive copies of all submissions). I’ll comment further shortly. Meanwhile, […]

February 8, 2011 — 5 comments — News

The CRTC’s Faulty UBB Foundation: Why There is Reason to Doubt the Review

The controversy over the CRTC’s usage based billing decisions took centre stage yesterday with an Industry Committee hearing and comments from politicians from all parties. After Industry Minister Tony Clement earlier advised that the government would send the CRTC back to the drawing board on UBB if the Commission did not do so itself, Chair Konrad von Finckenstein told the Industry Committee that the CRTC was delaying implementation of the decision by at least 60 days and that it would review it to “verify” that it protects consumers, ensures that heavy Internet users pay for their “excess use” and that small ISPs retain maximum flexibility. Yet immediately after the hearing, Clement told reporters that “regardless of the outcome of that review the ruling will not be implemented.”

While this suggests that review will be theatre, there is considerable reason to be skeptical of the review on both procedural and substantive grounds (I will leave to the side those who will claim that this is all just political pandering to consumers – Clement has a mixed record in that regard: solid on telecom and spam, weak on copyright given the digital lock rules in Bill C-32). Many in the media have begun to question whether the public realizes that this specific dispute only directly affects some independent ISPs. I think the answer is no. However, after yesterday’s hearing, I am left with the sense that the CRTC does not realize it either. In von Finckenstein’s effort to defend UBB, he failed to recognize that there is a world of difference between supporting the choice of an ISP to implement UBB and a regulatory model that leaves an ISP with no other alternative. The CRTC’s UBB decisions are wrong not because UBB is wrong, but because they undermine the potential for competitors to make alternative choices.

February 4, 2011 — 79 comments — News