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Bell Canada Devises Backup Plan To Kill Wholesale Competitors
Worried about regulatory ruling, cooks up usage-based wholesale billing...
by Karl Bode 02:03PM Friday Jul 18 2008
Last March, Bell Canada started throttling wholesale competitors without telling them, ensuring that smaller ISPs couldn't offer a superior un-throttled connection to consumers. The move thrust the previously subdued network neutrality debate into the Canadian spotlight. It also drew the attention of Canadian regulators, who demanded Bell actually prove P2P congestion made such a tactic necessary (they couldn't). Now a post in our forums by TekSavvy CEO Rocky Gaudrault suggests Bell Canada's next plan is to double dip.
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Guess it's time to raise another stink and prepare for another end of month Bell event. Seems Bell may be planning another submission to the CRTC at the end of July. One part I hear is pretty good as they plan to introduce new speeds finally to the group (10Meg and 16Meg), but what absolutely stinks is seems Bell's planning on also introducing some sort of Usage Based Billing component!
Another Canadian wholesale competitor (keep in mind these are not resellers), Acanac, confirms the plan:
I can confirm this as well. They are pushing ahead with a user Usage Based Billing component. . .They even gave us the excuse that it's for the benefit of the Wholesalers. In my opinion this is just a back up plan in case the CRTC rules against them with Caip. For companies like Teksavvy and Acanac that have 4-6 1Gbps AGAS interconnects this could not get more ridiculous. We paid setup fee's planned months or even years ahead for what? What about IPTV.... With Usage Based Billing component it will be impractical for any of us to ever offer such services.
In other words, Bell Canada fears Canadian regulators will stop them from throttling competitors, since they couldn't actually show congestion made it necessary. As a back up plan, Bell wants to charge wholesalers for bandwidth up front, and apply usage-based charges on the other end. Such a move would make competing with the Canadian incumbent almost impossible. More innovation promotion, courtesy of Bell Canada?

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Cleveland, OH

2 recommendations

reply to JGROCKY

Re: Details...

ISPs there need to do what they do here; Build out their own networks.

Just because its legal for you to use their networks you shouldnt rely on them for your business. Start building out yours and show them up.

Why cry about it? when they go and do the usage based system what are you going to do? cry about that too?

You're a business looking to make profit. They're a business looking to make profit. And Bell owns one thing you both want. The wiring between the CO and the customers homes and businesses. Stop using the wire.

It has been showen here the ILECs will crush you no matter how they spin it. Next they'll drop their price rates and go after you that way.

and hydro and gas are not communication needs. Actually people lived before they were even around.

Also Net Neutrality was never about keeping the networks so they'd be wholesaled. They were about making content on them equal. You are crying about something that does not even fit the def. about what it was meant to be.

Start being a company and build out your own network or just get out of the way.