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Limbo Dance Redux: Bell Canada Lowers Usage Allowances on Customers, But Sells Usage Insurance for “Peace of Mind”

Paul-Andre Dechêne July 13, 2009 Bell (Canada), Canada, Internet Overcharging 12 Comments
Bell's Usage Allowance and Speed Chart (click to enlarge)

Bell's Usage Allowance and Speed Chart (click to enlarge)

Broadband Providers: How Low Can They Go?

Broadband Providers: How Low Can They Go?

When a broadband provider insists on the need to implement Internet Overcharging schemes on their customers to control costs and “manage their network,” it’s a safe bet they’ll also manage to find a way to increase your bill.  Bell, one of Canada’s largest Internet service providers, has reduced usage allowances on some of their popular Internet service plans, in some cases substantially.

Usage Allowances

Essential Plus:  2GB usage allowance (was 20GB)
Performance: 25GB usage allowance (was 60GB) (Bell’s most popular plan) 

Customers can now purchase ”Usage Insurance” policies from Bell for “peace of mind” in case they go over plan limits starting at $5/month, which provide additional allowances.

Bell claims the reduction in usage allowances comes with reduced pricing for broadband service, but many customers who forget to purchase “insurance” could be subjected to overlimit penalties of $2-2.50/GB, with a maximum penalty of $30 per month.

Bell customers looking for a place to complain have one less place to do so: Bell pulled the plug Friday on their support forum, popular with thousands of Bell customers looking for support or to share their feelings about Bell service.  The company has remained silent on the reasons for doing so.  No warning or advance notice was given.

Currently there are 12 comments on this Article:

  1. BrionS says:

    Usage insurance?!?! I ‘LOL’d!!!

  2. Tim says:

    OMG, talking about ridiculous. I think, if I were a customer of theirs, it would be better if they just pulled a gun on me and robbed me instead. That way, I wouldn’t feel bad about being robbed.

  3. Michael Chaney says:

    this sounds like the same “insurance” the mob would charge you…..a.k.a extortion

  4. uks says:

    Usage Caps must be a dream to any provider who has established them. This gives them ultimate control over creating and charging consumer for all kinds of pseudo “products/services”.

  5. Smith6612 says:

    Looks like Bell’s getting after everyone complaining about their caps. Cutting the caps almost by 80% is a very bad move. So to home users, this was a critical hit. To Bell, it was an instant win.

  6. Tim says:

    Seriously, Canadians need to organize and boycott these ISP’s up there. Hurt them where it really hurts, their wallets!!

  7. Michael says:

    Am I reading this wrong or is this actually a better deal than that proposed by Time Warner as once you pay the $30 in overages you are unlimited and can freely download as much as you want. It actually sounds kind of fair only being 30 dollars more to download as much as you want, with those not needing to download as much as desired not needing to pay that fee. I wouldn’t actually mind the canadian system, sounds like they are getting good speeds and the overages are not that bad being a maximum of 30 and then the all you can eat buffet begins again. Time Warner should seriously consider this model as it would be fair to all users arguably, although the initial caps are a little low for what is being paid for the service.

    • Rogers asks for up to $25 in overlimit fees, Bell asks for $30 in overlimit fees. The reason I last heard for this was that Canadian federal law limits such fees, although I haven’t confirmed that. I am aware Canadian ISPs want to see such limits removed, so they aren’t doing this out of the goodness of their hearts.

      Keep in mind, these providers also actively throttle your speeds for applications they don’t like, particularly peer to peer, which can drop to 250kbps speeds as they see fit.

      South of the border, there are no limits for overlimit fees, which is why no ISP trying to charge them seems to have limits.

      Just as with “usage insurance,” once one gets the establishment of overcharging schemes in place, whatever tempering of them they do at the outset to make them more palatable can always be removed later. So what costs $5 today may cost $50 tomorrow. Once you let them get away with charging them in the first place, it’s only a matter of time before they’ll jack the prices up.

      It’s FAR better to avoid ever allowing ISPs to engage in ANY Internet Overcharging schemes in the first place, versus arguing on their terms over what is supposedly “fair.”

      Remember, no ISP is on the verge of Chapter 11 here. The large national ones remain insanely profitable. They just want to take it to the next level of profit pillaging.

  8. [...] online video around a model they own and control, or who simply want to throw a Money Party by inventing new ways to charge people more money for exactly the same service they get [...]

  9. [...] to broadband, then throwing a penalty fee on your bill… unless you sign up and pay for their “insurance” plan to protect you from those [...]

  10. [...] lower today’s 250GB limit?  Perhaps, but there is no evidence of anything imminent.  It has been done before in Canada and sold as a “money-saver,” offered with an “insurance policy” Bell had [...]

  11. [...] some providers like Bell, the trick is to gradually reduce your usage allowance, exposing more and more customers to overlimit fees (the company even sells an insurance plan to [...]

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  • Rasputin1357: Why can't we bring back tar and feathering? This jackass looks to be the perfect candidate for that treatment!...
  • Terry: This makes it look as if you don't understand business. The content producer sets their asking price. The delivery provider negotiates the price to wh...
  • Dave Hancock: Phillip, one thing that you said peaked my interest: "Subscribers on Time Warner Cable’s blog keep coming up with an innovative idea to solve thes...
  • Jason!: Am I surprised? No, I am not surprised....
  • jr: CEOs need to make 8 figures...
  • DM: I hate hearing statements like this because this has been the cable industry’s exact attitude for the past five years. Regarding internet services,...
  • Jeremy: That's their whole plan so they can justify ripping off consumers with lousy bandwidth and caps....
  • Uncle Ken: Just great/ If what Kent says is true we will drop to the bottom of the rest of the earth and be back on dial up all in the name of stock holders. M...
  • Earl Cooley III: They should pay the various channels whatever fees they want, and finance it by dramatically slashing executive compensation, using the extra money le...
  • Phillip Dampier: In other words, some automated test procedure is being run on a periodic basis that resets your line speeds lower (how many have ever gotten faster sp...
  • Zaii: I've been having this issue for months now. I had 1792 d/l for years rock solid connection then I got "optimized" to 1504. Contacted Verizon direc...
  • Phillip Dampier: In Australia or New Zealand, where flat rate broadband was around only very briefly back when "online streaming" meant a low bitrate Real Audio stream...

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