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CRTC Orders Northwestel to Cut Rates for DSL Service in the Northern Territories by 10-30%

northwestelMore than three years after Canadian regulators required Bell Canada’s northern subsidiary, Northwestel, to undertake a $233 million modernization and upgrade plan, the CRTC has ruled the company is overcharging consumers for Internet access and has ordered rate cuts.

Customers in Nunavut, the Northwest Territories and Yukon pay some of the highest prices in the world for DSL Internet access, more than three times higher than what comparable broadband costs in southern Canada. The CRTC has found those prices unjustifiable, especially after its 2011 finding that Northwestel enjoyed strong financial performance while chronically underinvesting in its network.

The CRTC decision requires the company to cut prices for its DSL Internet 5 (5Mbps/512kbps) and DSL Internet 16 (16Mbps/768kbps) in N.W.T. and Yukon by 30% this May. Northwestel’s budget plans DSL Internet Lite (768/128kbps) and DSL Internet 2 (2.5Mbps/384kbps) will be reduced in price by 10 percent.

Customers of Northwestel’s most popular DSL plans pay between $65-90 a month for 2.5 or 5Mbps service with usage caps of 40 and 125GB per month, respectively.

Customers will also no longer face a $20/month broadband-only surcharge if they don’t want landline service and Northwestel’s overlimit fee, now $2-3/GB in the Northwest Territories, will be cut by at least $0.50/GB.

“Although we recognize the exceptional situation that exists in Northwestel’s territory, we must not let these challenges hinder the development and affordability of telecommunications services in the North,” said Jean-Pierre Blais, the CRTC’s chairman, in a March 4 release. “Access to reasonably priced Internet services plays an essential role in the North’s economic and social development. With this decision, we are reducing the gap between what consumers pay for Internet services in the northern and southern parts of Canada.”

Because of the company’s past pricing practices, Northwestel will not be permitted to increase residential Internet rates until the end of 2017 at the earliest, and will need CRTC approval for any other rate increases.

northwestel-operating-map

Northwestel’s operating service area includes the Yukon, Northwest Territories, northern British Columbia and Nunavut.

 

Residents in the northwestern and north-central regions of Canada have complained for years about poor service and high prices charged by Northwestel for Internet access.

http://www.phillipdampier.com/video/CBC North Northwestel gets slammed in Whitehorse 6-20-13.flv

Back in the summer of 2013, Northwestel was the subject of a CRTC public hearing that got heated after customers and competitors complained the company had a de facto monopoly. (2:53)

At a 2013 hearing, Blais heard from a number of angry residents upset about Northwestel’s performance.

“I know you are frustrated; we heard it from the interveners, but we’ve pushed things considerably,” Blais said at the time.

kfn logo“The DSL package that I pay for out at Lake Lebarge is absolutely ridiculous in comparison to high-speed in town,” said Jeremy Jones. “[Northwestel charges] $90 for [5Mbps DSL with a usage cap of] 125GB. The only way to increase it would be to put in another phone line and second modem and that would have ended up being another $100+ per month. We’ve decided it is cheaper just to go over it if we need to.”

Customers are also frustrated by the fact the company receives over $20 million annually in federal subsidies, but those benefiting the most from Northwestel’s finances are its shareholders.

Native communities in isolated areas of northern Canada have learned it is better to build their own networks than wait for promises from Northwestel to be fulfilled.

The K’atl’Odeeche First Nation built its own fiber network on its reserve in Hay River, N.W.T. after Northwestel reneged on an agreement to improve existing DSL service. Today, the native community gets better Internet access than the rest of Hay River, and the community is willing to share their enhanced Internet connectivity with Northwestel for the benefit of others nearby if the company would agree to connect to it.

“We saved them millions of dollars in infrastructure upgrades and I think it’s only fair that they lease a small portion of that infrastructure for them to meet their CRTC mandate,” said Lyle Fabian, the IT manager for the First Nation.

Fabian believes other First Nations should strive for broadband self-sufficiency by also building their own networks to take control of their digital future. In almost every case, Fabian said, those networks will deliver better service than what is on offer from Northwestel.

While the CRTC-ordered rate cuts will help customers in the Yukon and Northwest Territories almost immediately, Internet access in satellite-based Nunavut will continue to be exorbitantly expensive until the CRTC completes a review of those rates. Nunavut residents pay $179.95 a month for 5Mbps/512kbps service with a 30GB usage cap.

http://www.phillipdampier.com/video/First Mile -- First Mile Community Stories Tour Katlodeeche First Nation Community Network 5-23-12.mp4

Henry Tambour from K’atl’odeeche First Nation in the Northwest Territories of Canada gives a 2012 tour of the first phase of the locally owned and operated fiber network. The community of 300 elected to take control of their broadband future back from Northwestel. (4:12)

Rogers Cable Dumping Usage Caps for More Customers; New Ignite Plans for Unlimited Video Streaming

rogersThe cable company that used to make you think twice about every online video you watch doesn’t want you to think about that anymore.

Rogers Cable, eastern Canada’s largest cable company, has traditionally been one of the stingiest usage cappers in the Canadian broadband business. But now the company is marketing the fact many of its Internet plans are now usage-cap free.

Today, Rogers introduced Rogers Ignite Unlimited, 100/10 and 200/20Mbps Internet plans that come with unlimited usage, subscriptions to Rogers NHL GameCentre LIVE and shomi, Rogers’ TV Everywhere service.

“We’ve redesigned our plans to give our customers unlimited usage options with consistent, reliable speeds so they can surf more, stream more and share more without worrying about going over their limit or getting a spotty connection,” said Robert Goodman, senior director, Rogers Communications.

Goodman says the new plans are specifically designed to handle the increasing bandwidth demands of video streaming, which can quickly chew through any customer’s usage allowance. Rogers’ officials admit that 50 percent of the traffic on its broadband network is now video streaming and that customers’ Internet usage has spiked by 60 percent annually.

That growth, without a corresponding increase in usage allowances, offers a natural deterrent to cord-cutting and online viewing. Viewers who exceed their usage allowance face stiff overlimit penalties.

Rogers is not expected to lose any money dropping usage caps from its higher-end Ignite plans, which do not come cheap. The least expensive plans still keep usage caps with a $1.50/GB overlimit fee. Customers bundling multiple services together will pay less than these broadband-only prices:

  • Internet 30 ($64.99): 30/5Mbps with 100GB allowance
  • Rogers Ignite 60 ($74.99): 60/10Mbps with 200GB allowance
  • Rogers Ignite 100u ($84.99): 100/10Mbps with unlimited usage
  • Rogers Ignite 250u ($94.99): 250/20Mbps with unlimited usage

HissyFitWatch: Bell Loses Net Neutrality Case, Threatens to Bury Complaining Consumers In Legal Fees

The first "bricks of paper" arriving from Bell's attorneys in the case of Bell v. Ordinary Canadian consumers

The first legal “bricks of paper” arriving from Bell’s attorneys in the case of Bell v. Ordinary Canadian consumers arrived at the home of Jean-François Mezei of Pointe-Claire, Que.

A Manitoba university student and consumer groups who won their case against Bell’s preferential treatment of its mobile streaming video service are now being threatened with demands they personally cover Bell’s legal expenses as the phone company appeals the ruling in court.

The dispute involves Bell Mobile TV Service — a $5/mo optional add-on that allows Bell’s mobile customers to stream up to 10 hours of video programming, some of it from Bell-owned television networks like CTV, without it counting against the customer’s usage cap. Each additional hour costs $3. The service prices usage based on time, not data usage, which lets Bell stream very high quality video to customers. Competitors like Netflix do not have this option and their customers are billed based on the amount of data consumed, which is around 800 percent higher than what Bell Mobile TV charges.

University of Manitoba graduate student Benjamin Klass filed a complaint with the Canadian Radio-Television and Telecommunications Commission (CRTC) in 2013 accusing Bell of violating Net Neutrality and creating an anti-competitive marketplace for online video. ​Twelve of the 43 channels available on Mobile TV — including CTV, TSN and The Movie Network — are owned by Bell Media, a subsidiary, like Bell Mobility, of the media behemoth BCE.

Klass alleged the practice was a clear violation of Canada’s laws governing broadcasting: “No Canadian carrier shall, in relation to the provision of a telecommunications service or the charging of a rate for it, unjustly discriminate or give an undue or unreasonable preference toward any person, including itself, or subject any person to an undue or unreasonable disadvantage.”

The CRTC agreed with Klass and in late January ruled in favor of Klass’ complaint, giving Bell and Quebec-based Vidéotron (which offers a similar service) until the end of April to close them down in their present form.

BCE, the parent of Bell Mobility, told the CBC it was “shocked” by the CRTC’s ruling, suspecting the complaining groups mislead regulators into thinking Bell favored its own content over others.

“There’s a hint here that the government believes Bell Mobile TV delivers only Bell Media content,” spokesman Jason Laszlo said. “They should know we offer mobile TV content from all of Canada’s leading broadcasters in English and French.”

Bell_Mobility logoLaszlo added Bell-owned content only comprises 20% of Bell Mobile TV programming and that the ruling would deprive more than 1.5 million current Bell Mobile TV subscribers from getting the service after the spring deadline to shut it down.

The CRTC and consumer groups argue that is beside the point.

“At its core, this decision isn’t so much about Bell or Vidéotron,” CRTC chair Jean-Pierre Blais said at a breakfast luncheon in London, Ont., in late January. “It’s about all of us and our ability to access content equally and fairly, in an open market that favours innovation and choice. The CRTC always wants to ensure ­— and this decision supports this goal ­— that Canadians have fair and reasonable access to content. It may be tempting for large vertically integrated companies to offer certain perks to their customers. But when the impetus to innovate steps on the toes of the principle of fair and open access to content, we will intervene.”

Consumer group OpenMedia says Bell’s motivation isn’t to create a level playing field or provide customers with more options for online video. It’s about artificially inflating the cost of accessing services like Netflix and other independent video companies that are innovating away from the traditional pay television package.

“Bell is doing everything in its power to make the Internet more like cable TV,” said OpenMedia campaigns manager Josh Tabish. “They want the power to pick and choose what we see by forcing competing services into a more expensive toll lane online.”

Klass (Image: CBC)

Klass (Image: CBC)

Bell’s legal strategy going forward is an homage to the one American wireless companies used for years to avoid Net Neutrality.

Bell Mobility argues that Bell Mobile TV is a broadcasting service, not a telecommunications service and therefore doesn’t fall under the jurisdiction of the Telecommunications Act.

Since the CRTC was not receptive to that argument, Bell is taking the matter to the Federal Court of Appeal, asking it to overturn the CRTC ruling and grant the company court and legal costs paid for by the Canadian consumers that brought the original complaint.

Jean-François Mezei of Pointe-Claire, Que. is among them and has been the unhappy recipient of several parcels containing “bricks of paper” from FedEx he suspects is just the beginning.

Mezei has been tweeting about ongoing developments in the case, and asked Bell, “how come you have no press release bragging about how Bell Mobility is suing individual citizens who participated in [the CRTC complaint]?”

Klass told CBC News he hasn’t yet made up his mind how to respond to the court filing, but admitted it is unnerving.

“In that regard, it really strikes me as a method of intimidation,” he said. “Right off the bat, it has a chilling effect. It appears that Bell is simply pursuing the argument, that it unsuccessfully made to the CRTC, through the court.”

HD Smorgasbord: Rogers Tells Customers to Stop Worrying and Crank Up the Streaming Video

In a complete about-face for eastern Canada’s largest cable operator, Rogers Communications is inviting customers to take the brakes off their usage and go hog-wild with high bandwidth HD streaming and downloading with an unlimited use plan.

“Whether you use shomi, Netflix, YouTube or all three as your go-to streaming service(s), if you’re a subscriber to an unlimited Rogers Internet package, you don’t have to worry about streaming video in anything other than their highest-quality settings – the image is pristine and the sound is awesome,” the company writes on its online blog.

Rogers had argued for at least five years before Canada’s telecommunications regulator that compulsory usage caps and overlimit fees were necessary to manage congestion on their networks and to make sure that heavy users pay their fair share.

Those days of congestion are evidently over because Rogers takes customers through several tutorials to teach them how to turn up their streaming settings to deliver HD and 4K video streams.

“Rogers comes very close to implying it is Netflix and YouTube that compromise the video experience of customers, despite the fact Netflix created its user-definable video playback settings precisely to help Canadians manage usage allowances from companies like Rogers,” said online video analyst Rene Guerdat. “It’s clear that competition from independent providers offering unlimited use accounts has made Rogers’ usage cap regime impossible and they were forced to market an unlimited option of their own.”

Here is Rogers’ guide for cranking up the video quality of video streams, useful for anyone else who subscribes to these services as well:

shomi

This new video-streaming service for Rogers Internet or TV customers has three video-quality settings (Good, Better, Best). Each uses different amounts of bandwidth and offers different levels of viewing quality. These settings can be individually changed for each user profile, and can be made only from the Web application via the account holder’s profile.

To check / change your stream settings

  1. In a browser, go to shomi.com and log in with your account credentials.
  2. Go to the dropdown menu at the top far-right corner of the Web page.
  3. Select ‘Manage Account and Profiles.’
  4. Select the profile that you want to edit (or create a profile if it is a new profile), and under the ‘Manage Profiles’ menu you’ll see your ‘Max Video Quality’ settings.
  5. Click ‘Edit’ and then select the video-quality setting that you want.

Note: These profile settings update all devices except your Rogers cable box (if you’re using one).

Netflix

Netflix has streaming-video playback settings that use less data (in case you have a small monthly data cap). If you’re on an unlimited Rogers Internet package, though, you can get a better experience by streaming at the highest settings. Here’s how.

To check / change your stream settings

  1. In a browser, go to Netflix.ca and sign in with your Netflix username and password.
  2. If prompted, select the appropriate user profile you want to change.
  3. In the top-right corner, click the downward arrow, then click ‘Your Account.’
  4. In the Your Profile section, click ‘Playback Settings.’
  5. Click the radio button to select the highest-quality streaming setting (‘High’), then click ‘Save.’

This setting will be your new default across all your devices. If you have multiple user profiles under your Netflix account, follow the above process for them, too.

YouTube

YouTube gives you a lot of playback control, and typically does a pretty good job of balancing video quality and connection. However, to ensure you’re seeing the best-quality video possible from YouTube, you can change the settings for the videos you watch. Here’s how.

Play a YouTube video in HD (when available)

  1. While playing a video, move your cursor over the player window. Video-player elements will appear.
  2. Click the gear icon in the lower right of the player.
  3. In the bottom of the pop-over menu that appears, click on the ‘Quality’ option.
  4. Select the highest video-quality setting and click it to apply.

Tip: Not all video content that’s uploaded to YouTube is available in full 1080p HD. If no HD option is offered, just choose the highest-quality setting that’s available.

Default to high-quality YouTube playback

Setting default playback behaviour on YouTube requires an account. If you have a Google account (Gmail, Google+, etc.), you already have everything you need.

  1. Log in to YouTube using your Google or Gmail account ID.
  2. Click on your username and, in the menu that appears, choose the gear icon. If you’re already logged in, click your profile image in the top-right corner to find the gear icon instead.
  3. In the left navigation pane, click ‘Playback.’
  4. Select ‘Always choose the best quality for my connection and player size.’
  5. Click Save in the top right.

Now, YouTube will give you the best-quality video it can, based on the above-mentioned factors. Double-click a video to launch it in full-screen and to get a full-HD version of the video, where available.

Rogers Snaps Up Another Independent Cable Company; Hamilton-based Source Cable

source-cableRogers Communications will acquire Hamilton, Ont.-area independent Source Cable in a quiet $160-million deal.

The transaction was first noticed in Rogers’ quarterly financial report to shareholders, noting that Source Cable provides cable, broadband, and phone service to only a part of the city of Hamilton. Rogers already provides service next to Source Cable’s service area so a transition to Rogers should pose few issues for eastern Canada’s biggest cable operator. The rest of greater Hamilton will continue to be served by Cogeco and Rogers in their respective service areas.

“We’re really excited about purchasing Source Cable,” said Kevin Spafford, Rogers Communications spokesperson. “We view this acquisition as a growth opportunity because the company is well run; the footprint is adjacent to our existing cable systems; they have really good penetration of cable TV and Internet services, and there is potential for new customers as the unbuilt part of the area develops.”

Subscribers are less enthusiastic.

The cable company has always been responsive to its customers and willing to pioneer new technology before larger providers like Rogers.

Source Cable customers may win some extra ethnic language programming now seen on Rogers, but will likely experience a major downgrade in how they deal with their cable provider. Source customers will eventually be exposed to Rogers’ much lower-rated customer service. Broadband customers are also likely to lose their unlimited Internet service, forced to select from Rogers’ usage-capped plans.

Source Cable was started by former city alderman Jim Campbell in 1974. Campbell died two years ago.

Source Cable's service coverage area is limited to a number of blocks in parts of Hamilton, Ont.

Source Cable’s service coverage area is limited to a number of blocks in parts of Hamilton, Ont.

 

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