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Rogers Lowers Caps Even Further
In order to cash in on Netflix's Canadian arrival
by Karl Bode 10:50AM Thursday Jul 22 2010
Yesterday we discussed how Netflix video streaming is headed to Canada, with news outlets seemingly forgetting that Canadian ISPs have some of the most restrictive cap and overage penalties anywhere. As we've been saying for years, such low caps and high penalties aren't created for "fairness" or financial necessity -- they're created to boost profit, nudge tomorrow's user to ever-more-expensive tiers, and make Internet video less attractive as an alternative to traditional TV.

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With Netflix streaming now coming to Canada, Canadian ISPs are apparently taking the opportunity to tighten the noose. Users in our Rogers forum note that Rogers is now lowering their already very silly caps even further. In an age when broadband should be getting cheaper, a lack of competition is allowing the exact opposite.

"Extreme" users are getting a speed boost from 10 to 15 Mbps for $60, but they're also seeing their monthly cap lowered from 95 to 80 GB a month. "Lite" users meanwhile paying $36 a month are seeing their cap dropped from 25 GB to 15 GB, with no change in speed. Judging from this Rogers fine print, existing Extreme customers may be grandfathered under the old caps. For now.

This of course comes on the heels of last January's move by Rogers to lift the maximum overage penalties from $25 to $50 monthly. Like any good ISP trying to justify their ridiculously constrictive penalties, Rogers is still measuring their caps by the number of e-mails you can send, in order to give the impression these caps are more generous than they actually are. In reality, Rogers is taking advantage of its customers -- but given the lack of real competition in Canada, most Canadian customers can't vote with their wallet.

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