More than 160,000 ordinary Canadians have signed a petition telling telecom companies to back off their Internet Overcharging schemes.  The NDP has adopted an anti-Overcharging position, and now Openmedia.ca, an ally of ours, is spearheading an effort to get the larger Liberal Party involved in the fight against Internet ripoffs.

Deep pocketed cable and phone companies have invaded Ottawa with their lobbyists and friends to try and keep your broadband bill as high as possible. We can trump their hand, but only if you get involved.

With Canadian government pressure, the CRTC will fold like a wet newspaper.  Openmedia is trying to collect a historic 200,000 signatures, and starting today every signature will send e-mail to the inbox of Michael Ignatieff and Liberal Party Digital Critic Pablo Rodriguez, encouraging them to join the fight.

If you don’t want to pay through the roof for your broadband, hurry and add your name to the petition.  Ottawa has been surprised by the backlash from everyday consumers from BC to PEI.  Now let’s deliver the death blow to Internet Overcharging and tell Bell, Rogers, and Shaw to enjoy the fat profits they already earn, and stop the gouging.

Tell your friends:

• Email the petition link: https://openmedia.org/en/ca/look-back-our-stop-meter-campaign
• Share it on Facebook: http://www.facebook.com/sharer.php?u=http%3A%2F%2Fopenmedia.ca%2Fmeter&t=Stop%20The%20Meter%20On%20Your%20Internet%20Use%20%7C%20OpenMedia.ca&src=sp
• Tweet it: https://mobile.twitter.com/session/new

Netflix today released statistics showing Frontier Communications was America’s worst ranked wired Internet Service Provider, ranking at the bottom for quality and speed when using Netflix’s streamed content.

Only Clearwire, a heavily-throttled wireless provider scored worse than Frontier Communications.  This says nothing good about Frontier considering they are a wired provider.

Charter Cable scored highest — a surprise from a company that scores near the bottom in Consumer Reports broadband rankings:

Charter is in the lead for US streams with an impressive 2667 kilobits per second average over the period. Rogers leads in Canada with a whopping 3020 kbps average.

Canada’s higher speed performance comes even as providers claim they need to implement Internet Overcharging schemes to handle congestion on their networks — congestion not apparent from Netflix’s online video performance. Perhaps Canadians have been already grown accustomed to avoiding too much online video.

Netflix promises to release their streaming performance statistics on a monthly basis. Track your ISP from the charts below:

Netflix USA Speed Rankings

Netflix Rankings for Canada

(Our reader Paul sent us a news tip about this story.  You can send yours using the Contact Form linked above.)

Rogers, one of Canada’s largest telecom companies, will do anything to sell you their 3G wireless broadband Rocket Stick, even if it means scaring you away from using their own Wi-Fi hotspots.

Michael Geist, a popular columnist in Toronto, called Rogers about another matter, but the customer service agent soon began asking if Geist’s family used a laptop to access public Wi-Fi networks.

When I said that I did, he asked if I knew the dangers of using public Wi-Fi, which I was told included the possibility of hackers accessing my data or inserting viruses onto my computer.  Given the risks, the agent continued, might I be interested in the Rogers’ Rocket Stick?

Geist was completely unimpressed with Rogers’ attempts at upselling through scare tactics.

“Mobile internet services are good products that can and should be sold on the basis of the convenience they provide, not by scaring consumers into thinking that alternative access services are unsafe,” Geist wrote.

More importantly, the irony of Rogers’ statements can’t be missed, as Geist notes:

• Rogers operates hundreds of public wifi hotspots across the country. When promoting its hotspots, it describes them as providing “high-speed, secure access to the Internet.”
• Rogers permits Internet tethering from many smartphones. Many users may find that tethering provides a more cost effective solution than purchasing yet another mobile Internet device.  The agent did not mention this alternative.
• There are risks with public wifi, but those can be mitigated through a variety of steps on users’ computers. Advice on what do include Microsoft’s advice on public wifi networks, Lifehacker on how to stay safe on public wifi networks, and Ars Technica on staying safe at public hotspots.

Stories about the risks of Wi-Fi are not limited to Rogers.  Several media outlets have been running stories ranging from the plausible:
[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/CTV British Columbia – How to secure your Wi-Fi surfing 10-7-10.flv[/flv]

CTV in Southwest Ontario reports some area residents believe Wi-Fi causes diabetes and other ailments and wants Wi-Fi pulled from schools.  (7 minutes)

Also not to be missed are Rogers’ impenetrable “Flex Rate Plans.”  Would it not be easier to just say customers will be charged the amount of the rate plan that corresponds with their actual usage?

Flex Rate Plans
Rogers unique Flex Rate service automatically adjusts the monthly fee based on your actual monthly usage. As you use more or less data, Rogers Flex Rate Data Plan will automatically roll up or down to the next best rate available. This guarantees you the best rate based on actual usage.
Tier	Monthly Fee	Data Included**	How Rogers Flex Rate Works
1	$35	500MB	You will start each month at Tier 1. If your monthly usage exceeds 500MB, then you move up automatically to Tier 2 and will be charged $40.
2	$40	1GB	If your monthly usage exceeds 1GB, then you move up automatically to Tier 3 and will be charged $55.
3	$55	2GB	If your monthly usage exceeds 2GB, then you move up automatically to Tier 4 and will be charged $70.
4	$70	5GB	If your monthly usage exceeds 5GB, $0.05 per additional MB will be charged.

Monthly prices above do not include the Government Regulatory Recovery Fee*

Phillip Dampier: The Blizzard of BS from Canadian ISPs is getting salted and plowed by Canadian media and outraged citizens.

A major ongoing Internet Overcharging campaign by Canadian Internet Service Providers to extract more revenue from consumers has sailed under the radar for more than two years now in most of the Canadian press.  Although some newspapers have occasionally covered various telecommunications atrocities related to cell phone pricing, lagging broadband speeds, and an overall lack of competition in the country, specifics about efforts to curtail broadband usage (or monetize its claimed “overuse”) has been a topic mostly discussed on online forums.

No more.

As Stop the Cap! turns more attention to Canadian Internet Overcharging schemes, let this be an object lesson to our American readers about how the game is being played.  What starts in Canada could finish American flat rate broadband as well.

CRTC Ruling Lights the Flame

This week, the Canadian Radio-television and Telecommunications Commission (CRTC) finalized rules that will effectively end unlimited broadband service in the country.  Remarkably, the Commission’s ruling completely ignores the one group such “usage-based billing (UBB)” impacts the most: individual customers.

The game-changing rules, found in the obliquely-named “Telecom Decision CRTC 2011-44,” effectively establish false usage-based pricing on both the wholesale and retail levels.  No provider will actually sell broadband packages that charge only for what a consumer actually uses.  Instead, each provider will set arbitrary usage allowances — usage limits — on their broadband accounts.  Any remaining unused allowance is forfeit at the end of the month, but “overuse,” at the discretion of the provider, will be penalized with overlimit penalty fees running several dollars per gigabyte.

The CRTC acknowledges, and big providers admit, these Internet Overcharging schemes are all about getting consumers to change their online activities.

[Providers] submitted that UBB rates shape end-user behaviour and that different UBB rates would lead to different behaviours by carriers’ and competitors’ end-customers.

Perish the thought.  Without such pricing, Canadian broadband could ultimately offer an alternative to overpriced cable-TV and telephone packages sold by the very providers that advocate limited use plans.  Providers insist on predictable, uniform usage.  The Commission apparently agrees.

The Commission even acknowledges today’s unlimited use plans in Canada almost always recover the actual costs incurred to provide them, and then some:

The Commission also notes that the flat-rate component of the carriers’ retail Internet service rates recovers most, if not all, of the associated retail UBB costs. In the Commission’s view, this situation provides carriers with the flexibility to adjust or waive retail UBB rates on a promotional basis.

With this in mind, why the CRTC felt radical changes were warranted is only a mystery until you realize most of the commissioners were former employees of the various telecommunications companies themselves.

Birds of a feather….

The only audience the CRTC listens to.

All of the falderal about the merits of UBB aside, in the end the CRTC threw a small bone to independent service providers not affiliated with super-sized players like Bell, Rogers, Shaw, and Videotron — the Commission ordered they be given a “whopping” 15 percent price break off wholesale rates.

Major carriers were outraged even by this token amount, arguing that providers forced to charge correspondingly higher prices (higher than major carriers charge) could still eke out a place in the market by offering other services or better support.  They didn’t need, or deserve a discount.

But independent competitors warned without discounts approaching 50 percent, many will be gone within five years.  Many providers argued the major companies, some who received taxpayer subsidies to construct national telecommunications networks, would be able to set wholesale prices artificially high to drive them out of business.

Canada’s Media Reacts

The effective end of flat rate service across Canada finally sparked significant national media coverage of the imminent death of Canada’s broadband revolution, soon to be relegated to a nickle-and-dime metered pricing scheme that will give providers the monetary power to control usage, limit innovation, and have their hands into picking marketplace winners and losers.  Don’t like Netflix?  Slash usage allowances.  Want to protect your cable-TV revenue?  Exempt your own online content from the meter as long as you keep your subscription.  Want to drive down Canada’s broadband standing in the world?  Turn the marketplace over to a handful of companies dreaming of revenue opportunities afforded by monetizing broadband usage.

The Globe and Mail — A metered Internet is a regulatory failure: The CRTC has decided to allow Bell and other big telecom companies to change the way Canadians are billed for Internet access. Metering, or usage-based billing (UBB), will mean that service providers can charge per byte in addition to their basic access charges. The move is sure to stifle digital creativity in Canada while the rest of the world looks on and snickers.  […] So there you have it. Just as the world is ready to feast on what Canadians might cook up in the way of multimedia 3.0, Canada decides to meter the Internet, tilting the table sharply towards old-school TV networks and big corporations that can absorb the higher cost of doing business.

Canadian newspapers have covered the story in the greatest detail, but now — finally — Canada’s television news has discovered the story, which for many media critics mean the story is actually “real.”

“If you don’t see it on television, it didn’t really happen,” writes Jim from Halifax, Nova Scotia.  “A lot of Canadians don’t read newspapers, and the magazines certainly are not covering this story, so it has been an online-only event  until CBC, CTV, and Global put it on their newscasts.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/CBC News Extra Billing for Internet 1-18-11.flv[/flv]

CBC Television reports on the Internet Overcharging controversy.  (2 minutes)

Some critics say much of Canada’s commercial media is already in the hands of a tightly controlled, vertically integrated empire.  Most of the cable and phone companies have ownership in many major commercial broadcasters, cable networks, and even newspapers and magazines.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Vertical Integration.mp4[/flv]

30 Rock’s Liz Lemon and Jack Donaghy explore the concept of “vertical integration.”  Then see how it relates to Canada’s media.  (3 minutes)

But even a controlled media environment cannot stop outrage over UBB going viral, as ordinary Canadians realize they are about to pay much higher prices for a service they depend on more and more.

Outrage Commences

Charlie Angus (NDP) -- "This pricing is a ripoff."

While these pricing schemes have been around awhile, now that they are getting well-publicized exposure, consumers have realized the implications of counting how many YouTube videos they watch.

Tens of thousands have signed Openmedia.ca’s online petition, others are complaining to the media and writing their members of Parliament, demanding action.

That will only get louder when consumers start receiving bills for double, triple, or even higher for the exact same quality of service they used to pay less to receive.

“There will be a huge wake-up call for many customers,” said Jared Miller, president of Youmano, a provider based in the Town of Mount Royal.

Charlie Angus, the NDP member of Parliament who speaks about digital issues, said he he thinks the entire pricing scheme is a ripoff that will lead to huge increases in customers’ bills.

“What we need to have is clear and transparent rules so it’s being used in a measured capacity, and it’s not just instituting the principle that every time you turn on the Internet, they can ding you for fees like they do with cell-phones,” Angus said. “We’ve seen this before; when we were told that deregulating cable rates would give customers a big benefit. We were paying 60-to 100-per-cent more in no time.”

“Canada is already falling behind other countries in terms of choice, accessibility and pricing for the Internet,” Angus added.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/CTV British Columbia – Canadians rank among most enthusiastic web users 12-28-10.flv[/flv]

CTV British Columbia explores Canada’s love affair with technology and how its integration has dramatically changed the social lives of many families.  That’s no surprise, considering Canadians are North America’s most enthusiastic net users.  (2 minutes)

The Vancouver Sun‘s Gillian Shaw reports consumers in British Columbia, Alberta, and beyond are about to pay more for their Internet service, and consumers across Canada are not pleased.

Shaw, who isn’t affiliated with Shaw-the-cable-company, notes changes by a federal regulator could mean the end of unlimited broadband service across the country.

Steve Anderson, founder and national coordinator of the Vancouver-based OpenMedia.ca., which also fights for Net Neutrality protections in the country, thinks “usage-based billing,” a core component of Internet Overcharging, has struck a nerve.

“Bell, Rogers, and Shaw have been given the green light to determine how we pay for Internet,” Anderson tells Shaw.  “If this decision goes unchecked, broadband is about to cost much more for Canadians.”

Anderson tells the newspaper more than 40,000 consumers have signed the group’s petition opposing the pricing schemes, and many Canadians are taking the matter to their member of Parliament.

“It is a really interesting grassroots community that has sprung up around this. Basically they said enough is enough. They are drawing a line in the sand and saying ‘we are not going to take this anymore, this is where it stops.’”

Shaw also talked to Stop the Cap! about the pricing schemes:

“We have consumers who pay good money to receive broadband service, now they have to think twice about everything they do online in case they expose themselves to over-limit fees,” said Phillip Dampier.

“How many people measure how much they are using online?” said Dampier. “If you have kids that are teenagers and you are sharing an Internet connection, can you imagine the battles when the bill arrives – ‘Who ran up the bill?’

“If you thought cellphone bill shock was bad, imagine you have two teenagers living at home who are on the Internet all the time.”

Dampier said usage explanations by companies, such as Shaw’s graphic that shows 15 gigabytes of data equals 105,000 emails are useless for the average consumer.

“Shaw says these are generous; that’s all nice, but nobody needs to send out 105,000 emails. But what they do need to do now that Netflix has come to Canada is video streaming and you can blow through these usage limits a lot faster using online video.

“If you have Shaw’s lite service you can get through four movies tops, that’s it — no more emails for you, no web pages, or you can, but watch out, you’ll get a big bill at the end of the month.”