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Telus Makes Usage Caps Even Smaller
Also Raises Rates for Good Measure
by Karl Bode 08:33AM Monday Feb 11 2013
Two things you'll often hear defenders of usage caps on fixed line networks say is that the caps will scale with time as the network improves, and that the caps allow carriers to avoid having to raise rates because heavier users are now "paying their fair share." Except the lack of competition that allows low caps and high overages to exist in the first place is the exact same thing that allows a carrier to not only continue raising rates, but also to squeeze the cap ever tighter once it's in place.

Click for full size
Canadian ISP Telus this is providing the latest clear example of this.

Users in our forums note that Telus is not only lowering usage caps for users, they're raising rates on plans from $3 to $8 a month -- after raising them just last year. The cap reductions are severe, with many plans seeing their usage allotments almost cut in half. In a statement to the media, Telus trots out some very familiar justifications:
quote:
It is only fair for customers to pay for the amount of bandwidth they use and be on a plan that realistically reflects their usage patterns; otherwise, moderate users end up subsidizing heavy users. Even with the change TELUS has some of the most generous usage caps in comparison to many other ISP’s. Most customers use only a fraction of the allotted threshold. Usage limits are put into place so that the small percentage of high usage customers to not impact the internet experience for other users on the network. We currently do not charge for over usage, but the thresholds allow us to ensure that customers are on an appropriate plan for them.
The "fairness" explanation is of course what ISPs use when they want to impose caps in the first place, yet even with users paying their "fair share," the caps keep shrinking and the prices keep soaring twice a year. Again (once more with feeling), this is because caps aren't about congestion or financial necessity, they're about sticking it to users in uncompetitive markets. The more aggressive a company is, the worse the competition they face.

Telus proudly notes that they don't yet charge overage fees on top of the ever-tightening caps and bi-annual rate hikes, though given Telus's aggressive nature on this front, that probably won't last long.

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Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23

1 edit

Contrast

In contrast, Bell Canada, the eastern Canadian equivalent to Telus (they almost merged recently too), recently just introduced unlimited usage plans for $10-30 (for with/without bundle). So now you've basically got the two major Canadian telephone companies directly contradicting each other's arguments.
--
Developer: Tomato/MLPPP, Linux/MLPPP, etc »fixppp.org

clarknova

join:2010-02-23
Grande Prairie, AB
kudos:7
Reviews:
·TekSavvy DSL

Re: Contrast

said by Guspaz:

Bell...just introduced unlimited usage plans for $10-30

You just blew my mind. So Telus is now officially the worst large company in the world.
--
db

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Contrast

said by clarknova:

said by Guspaz:

Bell...just introduced unlimited usage plans for $10-30

You just blew my mind. So Telus is now officially the worst large company in the world.

Telus is like a buzzing fly to at&t.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·SureWest Internet

Re: Contrast

said by KrK:

said by clarknova:

said by Guspaz:

Bell...just introduced unlimited usage plans for $10-30

You just blew my mind. So Telus is now officially the worst large company in the world.

Telus and Frontier are like buzzing flys to at&t.

Fixed it for you.
rebus9

join:2002-03-26
Tampa Bay

1 recommendation

For years I've been saying the 'A' in AT&T stands for antichrist.

They are evil on a level that's hard to adequately put into words.

NotTheMama
What Would Earl Do?

join:2012-12-06

You know what this indicates...

that their network is deteriorating instead of improving.
34764170

join:2007-09-06
Etobicoke, ON

Re: You know what this indicates...

said by NotTheMama:

that their network is deteriorating instead of improving.

Is this supposed to be a bad joke?

NotTheMama
What Would Earl Do?

join:2012-12-06

Re: You know what this indicates...

Yes.

Metatron2008
Premium
join:2008-09-02
united state

Re: You know what this indicates...

It probably is. All those profits have to go to the the pockets of the executives so they can buy a new yacht right?
Cobra11M

join:2010-12-23
Mineral Wells, TX

ha

why is it not just the Canadian cable cos but also American ones that say its for fairness? that doesn't justify anything they are doing..

they might as well tell the truth to people and say we are charging more because we want more money...

Mike
Premium,Mod
join:2000-09-17
Pittsburgh, PA
kudos:1

Re: ha

Canadian ISPs are more notoriously cheap.
34764170

join:2007-09-06
Etobicoke, ON

Re: ha

said by Mike:

Canadian ISPs are more notoriously cheap.

Cheap has nothing to do with it. Canadians are too complacent. Too many are sheep and will keep paying no matter how much they're being screwed.
34764170

join:2007-09-06
Etobicoke, ON
said by Cobra11M:

why is it not just the Canadian cable cos but also American ones that say its for fairness? that doesn't justify anything they are doing..

they might as well tell the truth to people and say we are charging more because we want more money...

Because there are too many suckers out there that believe the lies and bullshit.

Exand

join:2001-10-28
Canada

Btw

For Telus internet customers who were under the Optik plans which were $5 cheaper than the standard internet plans, the price increase is $13, not $8.

Optik25 used to be $52 ($47 with a bundle discount) but Telus removed the disctinction between the two types of internet plans and bumped up Optik customers to the higher pricing making everyone pay $65 ($60 with a bundle discount).

A user posted the previous package plans here:
»Re: [BC] Today - usage cut in half - 28 Days Later a $5 increase

Exand

join:2001-10-28
Canada

Re: Btw

I should add that Telus increased internet prices back in June 2012 by $3 already. Depending on what plan you were on with the February price increase, within a span of less than a year your bill would have gone up $16!

J E F F
Whatta Ya Think About Dat?
Premium
join:2004-04-01
Kitchener, ON
kudos:1
Reviews:
·Rogers Portable ..

Re: Btw

So does Telus have an agreement with Rogers to make Rogers customers feel that we're not being screwed as hard as Telus customers?

Either way, you go west, you get screwed. As miserable as eastern Canada can be, they do have great internet. From all their providers.
--
If you can't explain it simply, you don't understand it well enough. - Albert Einstein

Cartel
Premium
join:2006-09-13
Chilliwack, BC
kudos:2

Re: Btw

this sucks
100GB doesn't take long watching youtube and news videos.
that's pretty ridiculous.

J E F F
Whatta Ya Think About Dat?
Premium
join:2004-04-01
Kitchener, ON
kudos:1
Reviews:
·Rogers Portable ..

Re: Btw

said by Cartel:

this sucks

Apparently "Rogers" has a 8-year plan (yes, 8 years) that is $45/month...35Mbps/3Mbps with 200GB usage. Any price change is credited back into your account. No contract...

According to here anyway. (YMMV)

»forums.redflagdeals.com/rogers-e···1290815/
--
If you can't explain it simply, you don't understand it well enough. - Albert Einstein
34764170

join:2007-09-06
Etobicoke, ON

Re: Btw

No, it is 8 months.

ChuckcZar

@teksavvy.com

It almost makes me think they'll enforce their caps

The question is are they going to rob everyone blind like out east in Ontario? That's the pressing question that needs to be answered. A simpleton would assume they would but if they do things like Bell out in Ontario it's a roll of the dice logic means nothing.
Cloneman

join:2002-08-29
Montreal
kudos:3

contracts

How is telus allowed to do this? Aren't on-contract customers allowed to leave because of changes like this?

South_of_22

join:2009-03-23

1 edit

Re: contracts

said by Cloneman:

How is telus allowed to do this? Aren't on-contract customers allowed to leave because of changes like this?

I cancelled my Telus service and will be switching to TekSavvy at the end of the month because of the price increase and 50% cut to the usage cap.

I might be losing my 50Mbps plan with Telus, but I will be gaining unlimited use with Teksavvy on their 25Mbps plan.

From what the Teksavvy rep that I talked said when I signed up, is that they expect to see a big growth in clientele thanks to in part of Telus getting more greedy than usual.

She said it's going to be a very busy spring for them.
TBBroadband

join:2012-10-26
Fremont, OH
Reviews:
·AT&T U-Verse
·MegaPath

Re: contracts

And it will be even worse for the customers when links get filled up and no where for all that data to go. Also support seems to have gone down hill lately according to users here on BBR. Maybe a busy spring with signups but also busy losing customers.
34764170

join:2007-09-06
Etobicoke, ON

Re: contracts

said by TBBroadband:

And it will be even worse for the customers when links get filled up and no where for all that data to go.

The links are upgraded as more customers are added. That is only common sense.
tmc8080

join:2004-04-24
Brooklyn, NY

hsbc

when the price is too high vote with your feet and don't buy!!
15444104
Premium
join:2012-06-11

Re: hsbc

quote:
when the price is too high vote with your feet and don't buy!!

EXACTLY....
Problem is that big corporations have decided that consumers are completely addicted to their internet service and will NOT cancel at ANY cost.

The bottom line is that consumers will need to make hard sacrifices and possibly even do without service completely if they want these giant service providers to bring prices down to a more reasonable level in the future.

Folks need to start cancelling en mass to get their attention.

Mephisto13

join:2008-05-16
Gatineau, QC

Re: hsbc

Cancelling en masse would be awesome! Hit them where it hurts, their wallets.

Plus, there are other options open to Canadians, aside from the huge telcos. You don't have to suffer without internet. The best part is that most of the independants have bigger caps and real unlimited (like Teksavvy). You might not get the uber speed the big three offer...and while a good portion of your money has to go to the telcos because of the current rules (it's "their" network), why not support companies that don't try to screw you over and gauge you every 6 months?
--
"With your shield or on it!" - spartan code

"No matter where you go, there you are." - Buckaroo Bonzai

telussucks

@telus.net

read telus annual reports..

Service and equipment revenues increased year over year by $42 million and $85 million, respectively, in the third quarter and first nine months of 2012.
...
• Data service and equipment revenues increased year over year by $93 million and $228 million, respectively, in the quarter and nine-month period. The increases resulted principally from: (i) continued strong subscriber growth in Optik TV services and rate increases for the basic TV service and theme packs; (ii) increased Internet and enhanced data services due to growth from implementation of large enterprise deals, the pull-through effect of bundle offers including Optik High Speed services that enable TELUS to win and retain subscribers, and high-speed Internet rate increases; (iii) higher data equipment sales to business customers including a negotiated sale in the third quarter of 2012; and (iv) higher managed workplace revenues from the provision of business process outsourcing services for business customers.

Juggernaut
Irreverent or irrelevant?
Premium
join:2006-09-05
Kelowna, BC
kudos:2

Good old Tel-ass

We had a running joke back in the day; Telus, Your future is f*cked.

If Shaw starts this crap, I'll drop 'em like a hot rock and tether my LTE device. I'm tired of this stuff.
--
"I fear the day that technology will surpass our human interaction. The world will have a generation of idiots." ~ Albert Einstein
crypt0

join:2012-12-22
Edmonton, AB
Reviews:
·TELUS

Re: Good old Tel-ass

Actually Shaw is the opposite. They offer 50Mbps/400GB without needing to buy tv package and its only 25$ more a month. They have higher packages for more money which is what I would want if I needed it, telus offers nothing but 25Mbps or 50 if you buy overpriced tv.
As you can, see I'm ready to pull the trigger if they send me a bill with usage charges...

Juggernaut
Irreverent or irrelevant?
Premium
join:2006-09-05
Kelowna, BC
kudos:2

Re: Good old Tel-ass

I've been with Shaw since the @Home days circa 1999. They're better than Telus by a long shot for the most part.