Thursday, February 10, 2011

CRTC MAY INTRODUCE USAGE-BASED BILLING TO THE BROADBAND MARKET

The body, Canadian Radio-television and Telecommunications Commission (CRTC) has perhaps raised more than one eye brow of late. This is post a decision as made by it. The commission has seen a lot many complaints coming in from consumers and the Harper Government as well. For once, businesses and homes that use broadband will have to pay for Data that they use.

This is of course after a certain allowed limit is crossed. Apart from this they will anyways have to pay for the broadband packs they are getting. This has thus given rise to much speculation as is going on currently in the country. All the leading broadband service providers including Rogers, Bell, Telus and Shaw in the meanwhile still stress on the download speeds as being offered.

For them it is as simple as this, the faster your broadband is, the more you pay. But then there are bandwidth caps that have come into play courtesy the leading Internet Service Providers (ISPs). These are the biggies who have a stronghold over the market with covering as many as ninety five percent of it. Looking at an opportunity here, the relatively smaller ISPs have started to provide their customers with some brilliantly increased bandwidths.

Chatham, Ont.-based TekSavvy offers in its package, as much as 300 GB of bandwidth. This provides the users with greater flexibility and the freedom to do a lot more things and enjoying the opportunities as offered by the internet. But then this new decision, as made by the CRTC, will bring usage-based billing (UBB) into play. This will do away with the competitive advantage that these smaller ISPs have been enjoying.

This is bound to negatively affect smaller businesses which would have otherwise greatly benefited from the current scheme as being offered by the smaller ISPs. The small businesses had greater freedom in their endeavors of communicating with their audience, marketing and selling their goods to them among others.

The introduction of UBB will directly result in the cost of broadband rising greatly and to the much annoyance of the common people as well as small businesses which were heavily dependent on the internet.

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