A screenshot showing one of several online petitions opposing the ruling
(WEB HOST INDUSTRY REVIEW) — According to a Thursday report in the Toronto Star, the office of Canada’s prime minister intends to reverse a controversial decision by the Canadian Radio-television Telecommunications Commission that would have imposed usage caps and usage-based billing on smaller Internet service providers in the country.
“The CRTC should be under no illusion — the Prime Minister and minister of Industry will reverse this decision unless the CRTC does it itself,” said a quote attributed to a senior conservative government official.
The CRTC issued the ruling earlier this week, which would require smaller ISPs (which use the networks of the country’s two major carriers, Bell Canada and Rogers Communications, for last-mile connections) to impose usage limits on customers – eliminating “unlimited” plans – and charge a uniform rate of roughly $2 per gigabyte on usage beyond that limit.
Response to the ruling included a general sense of outrage from consumers and policy commenters around the country, with many Canadians creating and signing petitions asking the government to reverse it.
The Star reported that the decision might be overturned as early as next week. Though the CRTC is an independent agency, says the report, the cabinet has the power to overturn its decisions.
On Wednesday, Prime Minister Stephen Harper wrote on his Twitter account “We’re very concerned about CRTC’s decision on usage-based billing and its impact on consumers. I’ve asked for a review of the decision.”
Tony Clement, the country’s Minister of Industry has also been vocal online in his opposition to the ruling.
Proponents of the CRTC ruling say the new billing model would mean that heavy users pay more than customers just doing simple web browsing and email. The major carriers also say they’ve invested billions of dollars in building out the infrastructure to deliver the services.
Critics, however, call the ruling monopolistic “corporate gouging,” and argue that limiting high-speed Internet usage will stifle innovation.
About Liam Eagle
Liam Eagle has worked as a contributor to the Web Host Industry Review since its inception in 2000, and as editor since 2003. He has been editor of the WHIR's print magazine since its launch. His daily involvement in the gathering and reporting of Web hosting news and his regular interaction with Web hosting leaders gives him an uncommonly broad appreciation of the issues and tends facing the business. Through his WHIR blog, Liam spots Web hosting trends and offers opinions on the industry-wide impacts of major developments and the motivation behind big announcements. Follow him on Twitter @liameagle
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