Telus Says They'll Impose Usage-Based Billing
Behold the Product of Limited Competition
by Karl Bode 09:40AM Tuesday Apr 26 2011 Tipped by nauru
We've long noted that setting low caps and imposing unrealistic overage charges on consumers is something only made possible due to limited competition and regulatory capture in Canada. Despite these competitive shortcomings, Telus, one of the few non-overage ISPs, has been one of the broadband ISPs Canadian consumers run to if they're unhappy with the idea of usage-based billing. That's soon no longer going to be an option. Users in our Telus forum note
that Telus now says they'll be implementing overage fees for consumers starting sometime later this year:
Telus spokesman Shawn Hall told CTV News his company will also be implementing usage-based fees later this year for anyone exceeding their monthly cap. "It's going to be really customer friendly," he said. "You'd be forgiven for the first month you go over. You'd get lots of warning, lots of notice that you were going over with options of moving to other plans." Telus says most of its customers use an average 15 gigabytes per month. For about $35 per month, they offer 75 gigabytes – suggesting few people would be affected by the change. "It's only fair that people pay for how much Internet capacity they use," Hall said.
Except as Canadian consumers are well aware
, there's nothing "customer friendly" about using limited competition to impose huge, unnecessary markups on bandwidth. Telus sadly trots out a lot of the disingenuous justifications that have been debunked time and time again
, including arguing that despite the fixed or dropping costs of providing service, imposing low caps and high overages on all users
is somehow about "fairness" -- and not about Telus cashing in on Internet video in an uncompetitive market amidst napping regulators.