Home » Broadband "Shortage" »Canada »Competition »Consumer News »Data Caps »Net Neutrality »Public Policy & Gov't »Vidéotron »Wireless Broadband » Currently Reading:

Regulators Want to Know Why Vidéotron Has Room for Unlimited Data for Some Apps, Not Others

videotron mobileThe Canadian Radio-television and Telecommunications Commission is asking some hard questions of Quebec-based mobile provider Vidéotron, which began zero-rating preferred partner music streaming services last summer that allow customers to stream all the music they want without it counting against their data cap.

The CRTC is examining whether the practice violates Canada’s Net Neutrality policies, which insist all content be treated equally.

“If, as Vidéotron has stated, congestion is manageable and there is no meaningful risk of service degradation as a result of offering Unlimited Music service, explain why Vidéotron did not either increase or eliminate data usage caps for your broader customer base instead of zero-rating certain applications or services,” the CRTC has asked.

Unlimited Music allows customers to stream Spotify, Google Play Music, Deezer and Canadian-owned Stingray Music without it counting against a customer’s allowance. Other streaming services do count, potentially putting them at a competitive disadvantage.

videotron_coul_anglais_webObservers say zero-rating enhances a customer’s perception that data has a measurable financial value, often arbitrarily assigned by competitors in a marketplace. If providers charge an average of $10 per gigabyte, customers will gradually accept that as the base value for wireless data, despite the fact many providers used to sell unlimited data plans for around $30. Zero rating content can be used in marketing campaigns to suggest customers are getting added value when a provider turns off the usage meter while using those services. Stream 3GB of music and a provider can claim that has a value of $30, but provided to you at “no charge.”

In the United States, most providers generally offer “bonus data” allowances in promotions instead of focusing on individual services. But T-Mobile goes a step further, also offering Music Freedom, a zero-rated music streaming service of its own.

Consumer reaction to the services are mixed. If a customer is a current subscriber to the preferred content, they often perceive a benefit from the free streaming. But customers looking to use a service not on the list may consider such plans unfair.

The CRTC will be awaiting Vidéotron’s formal answer.

Search This Site:

Contributions:

Recent Comments:

  • Duane Cunningham: I Wish They Would Give us Back CLOO and Chiller. Those Were Great Channels....
  • EJ: Two of your three providers are not going to expand anytime soon for sure. Frontier has no money to expand so that is not going to happen and Verizon ...
  • Chris: Im in Tri-Cities, WA and just caught wind of the upgrade. Charter said they'd be doing this at some point over the last year and it finally happened f...
  • JayS: It will be interesting to see how companies in Utility-Monopoly like markets (Cable Tv, Electric, Wired Internet) treat the "tax rate windfall". Then...
  • Adam Bryant: Please give us any updates you have on this! I received an approval letter on 11/29/2017 12:16 PM sayign they would be sending a check within 10 busin...
  • jgbbmodelrailroad: New York State has a weird law that means Internet Service Providers pay they same taxes on infrastructure regardless of how many customers it serves,...
  • nanaki: If your on a 100mbit card you will not see a full 100 mbit but do to over head will see between 70 and 85 90 if your computer and network are brand ne...
  • Jose: I can strongly relate to your frustration. My elderly neighbors were having issues with their Spectrum phone line always going down. It took about 6...
  • Jose: I believe there is some truth to the price of the cable box. Before my next door neighbors switched over to a Spectrum plan, they were paying about $...
  • Phillip Dampier: Charter has not fully converted former Time Warner Cable customers to its legacy Charter website and support platform, which is why TWC customers ente...
  • Phillip Dampier: Folks, I should have been more clear that this list is for approved CUSTOMER-OWNED modems for Charter/Spectrum customers. It does not include modems s...
  • Curious George: use this list too the ubee is on this list under Modems offered by Spectrum https://www.timewarnercable.com/en/support/internet/topics/modems.html#/...

Your Account: