Regulatory: March 2008 Archives
By now, any Canadian who pays attention to Net-Neutrality issues, has likely heard about the controversy surrounding the fact that Bell Canada has been throttling the traffic of its ISP customers. Worst, they began throttling the traffic without notifying their customers! Arrogance that only a monopoly could get away with.
Don't be fooled by their rationalization that they only throttle P2P traffic, and that much of that traffic is generated by teenagers involved in illegal activities. They know that this argument will appease many of its subscribers concerns because after all, "why should your bandwidth be negatively affected by some punk downloading illegal movies?"
Here's five reasons that Canadians should be concerned about the latest Bell revelations and Net-Neutrality:
1. Bell and others have been selling their services with the promise that their customers could utilize all of the available bandwidth on their connection. They knew that most subscribers would only actually use a small percentage of the available bandwidth. Allowing a large percentage of their customers to actually use the bandwidth they purchase, would require substantial infrastructure investments which would negatively impact profit margins. Unless there are intervening factors, Canadians can expect higher Internet access fees and the return to usage-based fees as in the early days of the Internet. Enjoy watching Internet video based on your content and time preferences? Be prepared to pay, big time!
2. There are various ways for applications to try and bypass the traffic-shaping algorithms. One method is to encrypt the traffic. That tactic won't work for long. A carrier determined to throttle "undesirable" traffic will simply shape all encrypted traffic if they can't differentiate the desirable from the undesirable. Be prepared to wait a long time for the large file download from the office to your PC over your corporate VPN. Oh, and you can just forget about making a VoIP business call over that corporate VPN. Of course, your company might be allowed to pay an additional fee so that the carrier allows traffic originating or terminating at your office router to flow unimpeded.
3. The world of communications technology is changing at a rapid pace. Internet telephony, video streaming, audio streaming and many others are changing the way people consume the related services. As a result many of the carriers' services are becoming less relevant. Given the opportunity, its only a matter of time until they make moves to protect their traditional telephone and audio/video broadcast services. Anyone that thinks that Bell and others will, in the interest of fair play, do nothing as their services are eroded away by competitors is living in a fantasy world. They will fight, and the easiest strategy is a defensive one (impeding competing traffic) as opposed to innovating (developing compelling and competitive services).
4. Some might argue that if you're not happy with Bell's service then switch to another provider. Once enough customers leave, competitive forces will persuade them to change their tactics. That's not likely to happen, since for most Canadians there are very few, if any, alternatives. Besides, switching providers won't help to improve your service if the very few available service providers are using the same tactics. And of course, Bell has just admitted that they are throttling the traffic of their ISP customers; further limiting consumer options.
5. The Internet has benefited society in innumerable ways. It continues to enable innovative new products and services. It empowers the individual to find and consume information in ways that were unimaginable just 15 years ago. If left unchallenged, service providers acting as Internet Traffic Cops and using self-serving criteria will determine on behalf of Canadians which services they should be allowed to get from the Internet without additional payments to the carrier.
6. I know, I know, I said five reasons. But this one is also important. If Bell is allowed to shape traffic in any manner they choose, other Canadian service providers will follow suit. If they don't, they will find themselves at a competitive disadvantage.
Stumble It!
Don't be fooled by their rationalization that they only throttle P2P traffic, and that much of that traffic is generated by teenagers involved in illegal activities. They know that this argument will appease many of its subscribers concerns because after all, "why should your bandwidth be negatively affected by some punk downloading illegal movies?"
Here's five reasons that Canadians should be concerned about the latest Bell revelations and Net-Neutrality:
1. Bell and others have been selling their services with the promise that their customers could utilize all of the available bandwidth on their connection. They knew that most subscribers would only actually use a small percentage of the available bandwidth. Allowing a large percentage of their customers to actually use the bandwidth they purchase, would require substantial infrastructure investments which would negatively impact profit margins. Unless there are intervening factors, Canadians can expect higher Internet access fees and the return to usage-based fees as in the early days of the Internet. Enjoy watching Internet video based on your content and time preferences? Be prepared to pay, big time!
2. There are various ways for applications to try and bypass the traffic-shaping algorithms. One method is to encrypt the traffic. That tactic won't work for long. A carrier determined to throttle "undesirable" traffic will simply shape all encrypted traffic if they can't differentiate the desirable from the undesirable. Be prepared to wait a long time for the large file download from the office to your PC over your corporate VPN. Oh, and you can just forget about making a VoIP business call over that corporate VPN. Of course, your company might be allowed to pay an additional fee so that the carrier allows traffic originating or terminating at your office router to flow unimpeded.
3. The world of communications technology is changing at a rapid pace. Internet telephony, video streaming, audio streaming and many others are changing the way people consume the related services. As a result many of the carriers' services are becoming less relevant. Given the opportunity, its only a matter of time until they make moves to protect their traditional telephone and audio/video broadcast services. Anyone that thinks that Bell and others will, in the interest of fair play, do nothing as their services are eroded away by competitors is living in a fantasy world. They will fight, and the easiest strategy is a defensive one (impeding competing traffic) as opposed to innovating (developing compelling and competitive services).
4. Some might argue that if you're not happy with Bell's service then switch to another provider. Once enough customers leave, competitive forces will persuade them to change their tactics. That's not likely to happen, since for most Canadians there are very few, if any, alternatives. Besides, switching providers won't help to improve your service if the very few available service providers are using the same tactics. And of course, Bell has just admitted that they are throttling the traffic of their ISP customers; further limiting consumer options.
5. The Internet has benefited society in innumerable ways. It continues to enable innovative new products and services. It empowers the individual to find and consume information in ways that were unimaginable just 15 years ago. If left unchallenged, service providers acting as Internet Traffic Cops and using self-serving criteria will determine on behalf of Canadians which services they should be allowed to get from the Internet without additional payments to the carrier.
6. I know, I know, I said five reasons. But this one is also important. If Bell is allowed to shape traffic in any manner they choose, other Canadian service providers will follow suit. If they don't, they will find themselves at a competitive disadvantage.
Stumble It!
With the conditions that the Ontario Teachers Pension Plan appoints six of the 13 directors and that the chairman and CEO are Canadian, the CRTC has approved the takeover of BCE.
"I have to make sure that both in law and effect, the company will be controlled by Canadians," von Finckenstein said in an interview. "I think with the provisions as we conditioned them, it will be."
With the ruling, it appears that all legal and regulatory hurdles have been cleared. However, the dynamic and deteriorating conditions in the financial markets and the associated credit crunch has cast some doubt as to whether all of the financial participants will follow through with their commitments.
Stumble It!
"I have to make sure that both in law and effect, the company will be controlled by Canadians," von Finckenstein said in an interview. "I think with the provisions as we conditioned them, it will be."
With the ruling, it appears that all legal and regulatory hurdles have been cleared. However, the dynamic and deteriorating conditions in the financial markets and the associated credit crunch has cast some doubt as to whether all of the financial participants will follow through with their commitments.
Stumble It!
