This is why I love the federal conservatives
they basically told the CRTC to go fuck themselves
OTTAWA — The Harper government says it won't implement a ruling by the country's telecommunications watchdog that effectively kills unlimited Internet-pricing packages, despite plans by regulators to review the decision.
In doing so, the Conservatives essentially, have thumbed their noses at the Canadian Radio-television and Telecommunications Commission as it tackles complex regulatory challenges brought about by the Internet.
CRTC chairman Konrad Von Finckenstein told a parliamentary committee Thursday that the regulatory agency will review its recent decision on so-called "usage-based" Internet billing. He said the implementation of the decision will be delayed at least 60 days while the review takes place.
Shortly after Von Finckenstein finished his testimony, Industry Minister Tony Clement told reporters that he was "pleased" with the CRTC's move to review the ruling. But Clement added that, regardless of the outcome of the CRTC review, the government won't accept the watchdog's current position on Internet billing.
"The policy of the Harper government has and always will be to encourage competition, increase consumer choice, minimize regulation, and allow market forces to prevail," said Clement. "Regardless of the outcome of the CRTC review, under a Conservative government, this ruling will not be implemented."
In a decision last week, the CRTC ruled that big Internet service providers such as Bell Canada and Rogers Communications can continue to levy usage-based billing on smaller firms that offer Internet access to consumers. The ruling unleashed a backlash from consumer groups and small ISPs that have built a business model on offering unlimited downloading capacity to their customers.
Von Finckenstein said Thursday the CRTC review will evaluate the original decision to verify it protects consumers, ensures those who use the Internet "heavily" pay for their "excess use," and enables small ISPs to retain "maximum flexibility and continue to be a key source of innovation in the industry."
But he reiterated the CRTC's view that usage-based billing is a "legitimate principle for pricing Internet services." Von Finckenstein compared Internet access to other services offered by public utilities, such as water, natural gas and electricity. "The principle for me is clear," he said. "The ordinary guy should not subsidize the heavy user."
The amount of bandwidth used by consumers has surged in recent years, as the availability of high-volume services, such as streaming video, has increased.
Big Internet service providers, including Bell and Rogers, have introduced tiered billing plans that charge customers more, depending on how much bandwidth they consume.
The industry says it's fair compensation for the companies that are spending billions of dollars to upgrade the nation's telecommunications infrastructure. But consumer groups have accused big ISPs of gouging, and online giants such as Netflix and Google have argued such billing practices discourage innovation and deprive consumers of new services.
Netflix, the U.S. video giant, launched in Canada this fall with an offer of unlimited online access to movies and TV shows for $7.99 per month.
Von Finckenstein said the CRTC has been examining the issue of usage-based billing for some time. In 2009, the commission ruled that the first response of big ISPs to network congestion should be to invest in more capacity. But it also gave the green light to ISPs to impose usage-based fees if necessary to manage traffic.
He noted that most download caps imposed by ISPs are well above the average capacity used by Canadian Internet users. But he said the CRTC decided Wednesday to review the decision in light of the "evident concerns expressed by Canadians," and requests by Bell and another company to delay the ruling's implementation.
"I cannot tell you what the outcome of the review is, but I will tell you what I have said many times: I believe the ISPs are vital to having a competitive market," Von Finckenstein said. "We will make the decision based on the submissions that come before us . . . We will look at this with fresh eyes and an open mind."
It appears, however, that the government's mind is already made up. Clement announced on Monday that the government would "carefully" study the decision. On Wednesday night, Clement confirmed on Twitter that the Conservatives planned to overrule the decision, saying that the CRTC must go back to the "drawing board."
Liberal MP Marc Garneau said the government's lack of clear policy on issues such as usage-based billing has left the CRTC in a "giant policy vacuum."
"The CRTC tries to do its best job coming from its mandate and the guidance it receives from the government," said Garneau. "The problem is that government policy is not clear."
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