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Internet usage-based billing?
Posted by: ibonsegura | February 3, 2011 | Comments Off on Internet usage-based billing?
Throughout the last couple of weeks I have been following some recent news regarding the new decision on usage-based internet billing. The reasoning behind the decision is really two fold:
First, it will prevent smaller internet companies that originally purchase broadband from larger competitors such as Telus or Bell, from allowing unlimited GB to be downloaded (which in turn end up costing more than those who provide the access).
Second, it should (and I mean should (!)) prevent consumers to use extra data to download illegal material online, whether downloading movies or music illegally.
I suppose both points sound reasonable, yet it strikes me as the worst decision possible. For one, it will grant these big power houses (Rogers, Bell, Telus and Shaw) even more power allowing them to charge extra to their smaller competitors. In addition, they would be taking away the ability of these smaller organizations to provide unlimited downloading data packages. Result: Destroy competition among internet providers.
It will not only destroy competition but it will destroy the opportunity of new entrepreneurs developing online businesses that require a fair amount of downloading data. The main example that all articles seem to be talking about is Netflix (a site that provides high quality shows and videos to monthly subscribers to view online automatically). Other examples could be subscriptions to NBA TV, Rogers on demand etc.
For an article on CBC outlying a review of the internet billing decision click here.
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