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Rogers’ Usage Limbo Dance Continues: Company Slightly Raises Cap It Slashed Last Year

Phillip Dampier July 25, 2011 Broadband Speed, Canada, Data Caps, Rogers 9 Comments

Rogers Communications has announced usage cap and speed adjustments for many of its Internet service plans — changes that will bring increased allowances for some of the company’s most premium customers.

Rogers has modestly adjusted usage caps on its popular Extreme Internet Plan a year after slashing them, and brings dramatic increases for the company’s most expensive service tiers, even as it leaves usage caps unchanged for the bulk of their customers subscribed to the basic Express service plan:

A Rogers spokesman explained the changes.

The bar gets raised only for those who agree to spend more.

“With the rapid rise of online video, social media and online gaming, the way Canadians use the Internet is changing dramatically. We’re always reviewing our plans to ensure they meet your changing needs so starting later this month, our Hi-Speed Internet tiers are being upgraded with faster download speeds and higher data allowances for customers on Rogers DOCSIS 3.0, our best and fastest wireline network,” wrote RogersMarina on the company’s RedBoard blog.

Apparently the way Canadians use the Internet with Rogers’ most-popular Express plan hasn’t changed much, because Rogers leaves that cap unchanged at 60GB of usage per month.  Rogers previously reduced its usage cap for its Extreme level of service from 95 to 80GB, days after Netflix announced it was bringing its streamed video service to Canada.  Rogers’ latest increase amounts to just 5GB more usage than customers had during the spring of 2010.

The increased speeds that some usage tiers are gaining with the introduction of DOCSIS 3 technology come “at no additional cost” according to Rogers, but the company also mentions it charges higher prices — $1.50-$3 more per month — for the required DOCSIS 3 modem.

For customers certain to exceed their allowance, Rogers will sell you an insurance plan to protect your wallet from their $0.50-5.00/GB overlimit fees:

“Also starting later this month, you’ll be able to add a data assurance option if you’re currently using the Express and Extreme tiers. For an extra $20 per month, you’ll receive an extra 80 GB of data on top of your existing allowances. If you don’t need quite as much data, you can also get an additional 20 GB for an extra $5 per month.”

Most customers were not impressed.  Take Matt, for example:

“Speed increases are great but all they allow us to do is to get to our low data caps faster. These days with YouTube, Netflix, VOIP, and work VPN (heavy work from home user) $60 for 100 GB of data is pretty expensive, especially when a GB of data probably costs Rogers pennies per user. Competitors are starting to offer higher data caps for a similar price. In Toronto you can get a plan for same or slightly cheaper starting with 200GB.  In Vancouver you can get 50Mbps for $29 a month with a 400 GB data cap!”

Cambo notes the usage upgrades come easy for higher-priced tiers, but customers on the most popular Express tier have no increase in their usage allowance at all.

“You guys just don’t get it,” he writes on RedBoard.  “Speed isn’t the issue. Usage is. Why is it every tier gets a usage bump except the most popular Express? What is the point of bumping the speeds up and not significantly increasing usage, so we can get to the caps even faster I suppose. Sounds like a ploy to get people to spend more, to me.”

Andrew agreed:

“I also agree with this. I would rather get a larger usage bump than a speed bump — I don’t see a point in raising speeds when the data cap is still extremely restrictive. After all, I’d want to enjoy using the Internet, rather than monitoring my usage restrictions every day. If Rogers really listened to the customers, they’d know that most of us are more critical of their plans’ usage restrictions than their speeds.”

AT&T’s Phoney Baloney Video About Broadband Usage Belied By Actual Facts And A Broken Meter

AT&T warns DSL customers they can watch 10 High Definition movies per month... and use their Internet connection for absolutely nothing else, unless they want to incur an overlimit fee of $10.

AT&T has released a phoney baloney video for their customers purporting to “explain” broadband usage and the company’s completely arbitrary usage limits on DSL and U-verse customers: “A single high-traffic user can utilize the same amount of data capacity as 19 typical households. Lopsided usage patterns can cause congestion at certain points in the network, which can slow Internet speeds and interfere with other customers’ access to and use of the network.”

Too bad these claims are not verified with actual facts.

Meaningless statistics

AT&T’s claim that less than two percent of their customers use 20 percent of available bandwidth is frankly meaningless to the company’s DSL and U-verse hybrid fiber-copper networks.  For years, phone companies made a marketing point that unlike cable broadband’s shared network, their DSL service was never shared with anyone else in a neighborhood.  Therefore, running it at a trickle or full speed ahead should have no impact on any other customer.  The only exception to this rule comes from phone companies that under-invest in their middle mile and backbone networks.  For AT&T, that means trying to serve too many customers on inadequate equipment ranging from a poorly planned network of D-SLAMs, which connect individual customers with a fatter pipeline back to the central office, or an inadequate network between the central office and AT&T’s regional backbones.  Fiber, such as that used by AT&T’s more modern U-verse system, completely solves any capacity issues.  Broadband traffic is only a tiny percentage of the bandwidth consumed by AT&T’s IPTV video service — the one that delivers U-verse TV to your home.  AT&T imposes no viewing limits on customers, of course.

Any actual capacity crunch would only show up during peak usage periods — when AT&T customers of all kinds pile on their broadband connection at the same time. AT&T’s usage cap regime does next to nothing to mitigate that kind of congestion.  Here’s why:

Since AT&T and other broadband companies routinely claim the average use per customer is well under 20GB per month, and only 2 percent of customers are currently deemed “heavy users” by AT&T, that tiny percentage of customers cannot create sufficient drag on AT&T’s DSL network even if they opened up their connections to full speed traffic.  In reality, the 98 percent of “average” users piling on the network during prime time would be the only thing capable of the kind of critical mass needed to create visible congestion.  What uses more capacity?  Two customers using their 7Mbps DSL lines to stream online videos concurrently or 98 customers all using their 7Mbps DSL lines at the same time for virtually any online activity?

The math simply doesn’t add up.

The Congestion Myth

AT&T targets their broadband customers with an unwarranted, arbitrary Internet Overcharging scheme they cannot effectively explain to customers.

As two week’s of hearings this month have demonstrated, Bell Canada’s similar arguments for its usage caps simply come without any evidence of actual congestion.  In fact, company officials modified their position to talk more about peak usage congestion, a problem that cannot be controlled with a usage cap well in excess of the average consumer’s usage.  In fact, only a speed throttle could control network congestion at the times it actually occurred.  AT&T also ignores when its customers are using its network.  Is a heavy user downloading files at 3 in the morning creating a problem for other users?  No.  Are the majority of their average-usage customers all jumping online after school or work creating a problem?  Perhaps, if you believed AT&T even had a congestion problem.

Industry maven Dave Burstein does not, and Burstein talked to two chief technology officers at AT&T who told him wired broadband congestion is a “minimal” problem for the phone company.

Upgrades and Cord-Cutting, Delayed

Two things usage caps can do is help your company delay necessary upgrades to meet customers’ broadband needs, whether they are “heavy users” or not.  AT&T has shown itself historically to be slow to invest, and cheap when it does.  AT&T’s wireless network is bottom-rated by consumers thanks to inadequate network capacity.  The company elected to upgrade on-the-cheap to an IPTV platform that still relies on copper phone lines to deliver service that simply cannot compete in quality and capacity with Verizon’s FiOS fiber to the home network.  But investors love the fact the company counts every penny, even if it means inconveniencing and overcharging customers for their services, usually offered in duopoly or monopoly markets.

AT&T’s usage caps on U-verse are even less credible than those imposed on their DSL service.  U-verse is a fiber to the neighborhood network with near limitless capacity for broadband and video.  In fact, the only “congestion” comes from the copper phone lines that limit how much bandwidth can be supplied to your individual home.  But no matter how much you use, you will not affect your neighbors because your copper phone line is shared with nobody else.  In fact, the biggest chunk of U-verse’s bandwidth is reserved for their video services, which makes arguments about excessive Internet usage on that pipeline un-credible.

What AT&T’s usage cap does assure is that you will not drop that video package from your U-verse service anytime soon.  That lucrative revenue from expensive video packages cannot be forfeit without a fight, and a nice deterrent in the form of an arbitrary usage cap does wonders to keep that cord cutting to a minimum.

Meters That Don’t Measure

One of the worst ongoing problems with Internet Overcharging schemes like AT&T’s is the broken usage meter.  Stop the Cap! has received hundreds of e-mails from AT&T DSL and U-verse customers who report AT&T’s usage meter is either unavailable, broken, or is wildly inaccurate.  With absolutely no independent oversight, and no consistently accurate usage measurement, charging anyone overlimit fees with a broken meter doing the counting is unconscionable.  Yet AT&T may well try.  The company has already been sued by one law firm for what it alleges is an unfair usage meter on the company’s wireless service — a meter that consistently overcounts usage in AT&T’s favor.

AT&T admits they cannot even accurately measure their own customers' usage.

Once getting over the broken meter, customers are directed to a pointless usage-estimator — the ones that tell you about how many tens of thousands of e-mails you can send and receive under AT&T’s cap regime.  In fact, these statistics are irrelevant for the vast majority of customers who never think of sending 10,000 e-mails or exchanging 2,000 pictures or songs.  That’s because customers do not use the Internet to exclusively do those things.  Even with the guestimator, they are left checking a broken usage meter to ponder whether or not they can watch one more show or download another file without incurring a $10 overlimit penalty (or more).  That “generous” limit AT&T touts suddenly doesn’t look so ample when the company gets to the wildly popular activity of streamed video.  AT&T’s own video warns you can only watch 10HD movies a month over your broadband connection — and absolutely nothing else.  No web browsing, e-mail, or photos or music.  Ten movies a month.  Still thinking of dropping your U-verse video subscription now?

Yet AT&T has the nerve to claim, “Our goal is to provide you with the best Internet service possible.”  Really?

Thankfully, not every member of the investor class is thrilled with nickle-and-diming broadband consumers for usage that costs the providing company next to nothing.

The Economist excoriated AT&T for its unwarranted usage limits on its blog earlier this year:

The use of caps allows providers to dish out bandwidth with one hand and take it away with the other. The companies have vastly increased the capacity of various copper, coaxial and fibre lines, but artificially separate out a portion—at least half and often much more—for video which a set-top box or a broadband modem spits out as an apparently distinct service. Cable firms simultaneously push out hundreds of digital channels, while telecoms firms rely on multiple digital streams from live broadcast or cable TV or on-demand pay-per-view. It is as though the water main were divided as it entered the home and a steady, modest stream was made available for showers and at the tap, while most of it was always at the ready for a coin-operated washing machine.

Increasing speed on the internet portion, which would allow consumers to give up on TV subscriptions, is balanced by capping volume. If a consumer does not monitor usage, his internet access can be withdrawn or, in AT&T’s case, overage fees of $10 charged for every additional 50 GB of usage. […] [That] $10 charge applies whether the limit was breached by 1 MB or a smidgen under 50 GB.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/ATT Usage.flv[/flv]

AT&T’s new video on broadband usage is based on facts not in evidence and only adds to consumer confusion about arbitrary Internet Overcharging schemes.  (4 minutes)

A Week of Hearings On Usage-Based Billing: The Death Rattle of the “Congestion” Excuse

Phillip "No Data Tsunami Over Here" Dampier

As the Canadian Radio-television and Telecommunications Commission enters into the second week of hearings on Internet Overcharging, there have really only been a few minor surprises.

First, and most importantly, when voting consumers pay attention, regulators start asking questions and get aggressive.  This is the same commission that only a year ago gave the green light to wholesale usage-based billing (UBB) — a practice that would guarantee every ISP in Canada dropped flat rate Internet service.  After a half-million Canadians signed Openmedia.ca’s petition opposing UBB, the Harper government (and the opposition parties) got interested, and the Commission got an earful from Industry Minister Tony Clement, who was simply appalled at this kind of Internet pricing.

Second, this round of CRTC hearings has found Bell — UBB’s biggest proponent — largely unrepentant.  It still supports charging people for their usage, even as the company’s foundation for that premise — bandwidth congestion — erodes away.  Providers can claim anything they like, but they cannot invent facts.  By Friday, most of the commissioners realized what consumer advocates had been saying all along — there is no great bandwidth crisis in Canada.  No data tsunami. No exaflood in the zettabyte era.  Growth is exponential to be sure, and Canadians have a passionate affair with their Internet connectivity, but one that remains easily managed when providers make regular, affordable investments in upgrading their networks.

Bell’s week-long contention that congestion pricing was paramount to managing Canada’s bandwidth finally fell apart when CRTC Chair Konrad von Finckenstein noted Bell’s trinity of regional entities managed Internet usage completely differently, even though the traffic passed through the exact same network:

  • 1) Bell Aliant, which provides service in the Atlantic provinces, has no usage caps at all.
  • 2) Bell Quebec provides service with a considerably more generous usage allowance than given to those customers in Ontario, even those just on the other side of the border.
  • 3) Bell Ontario’s usage cap is downright stingy compared with Quebec, most likely because it competes in Ontario with an equally stingy provider — Rogers Cable.

With these facts in evidence, Bell was finally forced to concede it was “competition” not “congestion” that brought three different treatments of Internet usage.  So much for “network congestion.”

Bell’s competitors also hung the telecom giant out to dry when it was their turn to testify.  Each in turn would claim that congestion presented no problems for their respective networks.  Telus, Rogers and Shaw all denied they shared Bell’s usage problems.  That is not to say any of them were in favor of restoring flat-rate Internet access.

Instead, they argued, UBB represented a combination of “stimulating investment” in broadband networks (already insanely profitable for all-comers) and “peak usage pricing,” a hybridized argument about congestion during peak usage periods.  Since some wholesale broadband services are priced at peak capacity requirements, some argue UBB helps keep that peak usage manageable during prime time.

Unfortunately, the peak usage pricing argument undermines itself because Canadian providers enforce usage limits 24/7, not only during peak usage periods.  This means there is no incentive for users to offload their heaviest usage to times when the network experiences low demand.  Independent providers continue to argue “peak usage pricing” may be defensible in certain circumstances, but it’s not even a possibility under Bell’s proposed wholesale UBB scheme.

The record being constructed from Canada’s hearings have direct implications for Americans, as the basic business models for cable and phone providers are similar in both countries.  The death rattle of the “congestion” myth is good news for North American broadband users who have long rolled their eyes at hysterical arguments about data floods and capacity crises.

The CRTC still needs to hear from some additional speakers, and we are under no illusion they will completely reverse themselves on Internet Overcharging schemes, but this represents a clear-cut case that consumers need not simply sit back and take abusive pricing.  Consumer activism can make a real difference in the broadband policies of both the United States and Canada.  It takes a concerted effort, but once a critical mass of consumers is achieved, the ability for providers to simply do as they please becomes a virtual impossibility.

That’s good news for all of us.

[flv width=”640″ height=”368″]http://www.phillipdampier.com/video/CBC UBB 7-11-11.flv[/flv]

CBC News covers the start of the CRTC hearings and what UBB pricing is doing to Canada’s Internet experience.  (2 minutes)

How Comcast’s Usage Cap Costs Them Business and Your Internet Connection

Andre Vrignaud of Seattle has been benched for a year by Comcast for using too much of its Internet service.

From time to time, we get reports from Comcast customers victimized by the company’s 250GB usage cap.  The nation’s largest cable broadband provider implemented that arbitrary limit back in 2008 after the Federal Communications Commission told the company they could not throttle the speeds of customers using applications like peer-to-peer file sharing software — then pegged as the usual suspect for turning “ordinary” broadband users into “data hogs.”

For at least 18 months, Comcast’s usage cap came with no measurement tools or real explanation most customers could find about what a “gigabyte” was, much less how many of them they “used” that month.  Only last year, Comcast finally rolled out usage measurement tools for customers who bother to find them on their website.  New customers signing up for service never even realize there is a usage cap until a thick brochure of legalize comes with the installer outlining the company’s Acceptable Use Policy.

Still, compared to some of the usage cap battles Stop the Cap! was fighting three years ago, Comcast was the least of our problems.  Frontier’s infamous 5GB usage allowance was the worst we’d ever seen, Cable One’s IRS-like usage policies required an academic to explain them, and Time Warner Cable’s ‘lil experiment in broadband rationing with a 40GB usage cap experiment crashed and burned soon after being announced in the lucky test cities scheduled to endure it.  That doesn’t make Comcast’s cap fair or right, but protecting consumers from these schemes requires triage.

But we remember well Comcast’s promise that it would regularly revisit and adjust its usage cap to reflect the dynamic usage of its customers.  That’s just one more broken promise from a broadband provider with an Internet Overcharging scheme.  In fact, Comcast has not moved its cap one inch since the day it was announced, although they have increased their rates.  The only thing going for the cable giant is that it doesn’t treat “250GB” as a guillotine.  In fact, the cable company only sends the usage police after the top few percent of users that exceed it, issuing a warning not to exceed the cap again during the next six months, or face a year without having the service.

This punitive policy is what Time Warner Cable CEO Glenn Britt loves to rail against.  For him, broadband usage should never be penalized — it should be exploited for all the money the provider can possibly get from customers.  That’s why Britt favors a consumption billing system that starts off with a high monthly price for everyone, than goes much higher the more you use.  Would the neighborhood crack dealer cut you off for using too much?  Of course not.  Feeding your broadband usage habits can mean fat profits, and investors love it.

Andre Vrignaud, a 39-year-old gaming consultant in Seattle, wrote us (and many others) about his own experience with Comcast’s usage ban.  He’s a victim of it, having been warned once about usage and then ultimately told his cable modem was disabled for a year.  For Vrignaud, it was a case of using a cloud storage file backup provider, moving very high resolution images around, and having roommates.  Since Comcast counts upload and download traffic towards its usage limit, it’s not hard to see what can happen to anyone trying to back up today’s supersized hard drives.  What’s especially ironic is that Comcast itself sells online file backup services — which also counts towards your cap.

Comcast’s attitude about its decision to ban Vrignaud from its broadband service for a year was simple enough: it’s a clear cut case of violating their usage caps.  In their view, heavy users slow down broadband service for everyone else in the neighborhood.  So they set a policy that cuts them off when they use too much.

To add insult to injury, broadband-disabled Comcast customers have to call Comcast’s Retentions & Cancellations Department to get the billing stopped on his disabled service.  Vrignaud had to negotiate with a representative whose instinct is to keep you a Comcast customer at all costs, even when the company won’t allow you to be one!

But is Comcast really facing a congestion issue?  Not if you happen to be a business customer at the same address, using the exact same infrastructure that residential customers in the neighborhood use.  Business Class service has no usage limits at all — “congested neighborhood” or not.  And that is where Comcast’s argument simply starts to fall apart.

We’ve been in touch with Vrignaud privately in an effort to help him find a way back to his broadband service.  The alternative is DSL from Qwest/CenturyLink, and unless you live in an area where the phone company has upgraded their networks to support ADSL 2+ or other advanced flavors of DSL, that represents quite a speed downgrade.

Our readers have told us Comcast representatives have several unofficial ways of dealing with heavy users who have gotten their first warning from the company.  Some have told customers to sign up for a second residential account under the name of someone else in the home to allot themselves an additional 250GB of usage.  Others recommend signing up for a business account, which means no usage cap at all.  For those who have been cut off, signing up as a new customer under the name of someone else in the household usually gets you back in the door, albeit facing the same usage cap issue all over again.

The problem Vrignaud encountered is Comcast’s clumsy way of dealing with customers, like himself, who have been sentenced to a year without broadband service (from them).

Vrignaud explored the route we recommended — Business Class service — and found he couldn’t sign up.  Evidently Comcast’s ban is tied to his personal Social Security number, and when he tried to enroll in Business Class service using it, he was stopped dead in his tracks.

Turns out that once Comcast has cut your broadband account for violating their data cap policy you are verboten from being a Comcast customer for 1 year. That’s right:

After being cut off from Comcast’s consumer internet plan due to using too much data, I’m told I’m ineligible to use Comcast’s recommended solution, their business internet plan that allows the unlimited use of data — solely because I made the mistake of actually using “too much” data in the first place.

As the sales rep said in my Google Voicemail message, “what’s interesting is that if you would have started off on the business side of the house, since we don’t have a cap limitations [sic] you would’ve been fine.”

Vrignaud also mentioned he was unsure if Comcast required a business Taxpayer Identification Number (TIN) in order to sign up for Business Class service.  In fact, for our readers who have gone this route, it turned out not to be necessary.  They just put their Social Security number in the space reserved for a TIN and had no problems.  Vrignaud would have a problem, however, because his Social Security number is effectively “poisoned” for the year.  He would need to obtain a specific kind of TIN — an Employer Identification Number (EIN) to proceed.  Luckily, it takes less than five minutes to apply for one online and is free.  The number displayed at the end of the process would be the one to use with Comcast.  An alternative suggestion would be to sign up for service under the name of someone else in the household.

For those on Comcast’s bad side, there is more hoop-jumping to get your service back than at the Ringling Bros. circus.

Should all this even be necessary?

Broadband service carries up to a 90% profit margin.

Stop the Cap! thinks not.  While Comcast may have endured last-mile congestion on its shared cable broadband network in days past, the company’s aggressive upgrades to DOCSIS 3 technology makes congestion-based usage limits more of an excuse than a reality.  Comcast is pitching faster broadband speeds than ever, all hampered by the same 250GB usage limit.  While residential and business class customers share the same physical cable lines strung across neighborhoods, one faces a usage cap and the other does not.  It’s simply not credible.  Comcast’s punitive usage cap scheme throws away their own customers and the revenue they bring.

Vrignaud wants the option of getting his service back, perhaps by buying additional usage.  That’s Time Warner Cable’s dream-come-true, and one we are concerned about.  Once broadband usage is limited and monetized, it becomes a commodity that can be priced to earn enormous additional revenue for cable operators, regardless of the actual cost of providing the service.  That’s a dangerous precedent in today’s duopolistic broadband marketplace, because the cost per gigabyte will likely be on the order of a thousand times or more the actual cost, with no competitive pressure to keep that cost down.  That’s how Canada ended up in its Internet Overcharging pickle, where providers call $1.50-$5 per gigabyte “reasonable,” even though it costs them only pennies (and dropping) to deliver.  Some providers are even raising those prices, even as their costs plummet.  That’s not a road we want the cable or telephone industry walking down, or else we’ll find today’s enormous cable TV bills pale in comparison to the outrageous broadband service bills of the future.  Time Warner Cable provided a helpful preview in 2009 when they proposed unlimited 15/1Mbps residential service at the low, low price of $150 a month.

Vrignaud is just one more example of why Internet Overcharging risks America’s broadband future.  It’s an end run around Net Neutrality, its arbitrary, and unjustified.  The rest of the world is racing to discard what they called congestion pricing almost as fast as America’s providers (and their Wall Street cheerleaders) are racing towards Internet Overcharging.  The United States should be following Canada’s lead and hold providers to account for this kind of Internet pricing and force them to prove its warranted, or be rid of it.  With virtually every provider earning enormous profits off Internet service at today’s speed-based pricing, there remains no justification to overcharge customers for their broadband usage.

Canada: Get Off the Internet and Go Outside – You Are the Second Largest ‘Data Hog’ in the World

Phillip Dampier July 7, 2011 Broadband Speed, Canada, Competition, Data Caps, Public Policy & Gov't, Wireless Broadband Comments Off on Canada: Get Off the Internet and Go Outside – You Are the Second Largest ‘Data Hog’ in the World

Toronto

Except for South Korea, nobody uses the Internet more than Canadians.  That’s an important finding in a new report produced for Canada’s telecommunications regulator to better understand the current state of the broadband market in the country.

According to recent reports from the Organization for Economic Cooperation and Development, the country generates 2,288 terabytes of data traffic per month per 100,000 residents.  That’s among the highest in the world and comes from avid web browsing, watching online video, and a love affair with smartphones.

But like many relationships, this one is also expensive.  You pay all of the money you have to spare, and your provider delivers you just enough of a usage fix to keep you from running to Ottawa to demand change.

Canadian broadband pricing is in the top third of all OECD-measured nations, with the average price for High Speed Internet running $55.18.  The average median price across all OECD members runs a lot less — $39.23 per month.  If you want to pay less, you have to bundle your landline, cell phone, television, and Internet service with the same provider, or make due with a slow speed “lite user” plan, where average pricing had been running lower until this year.

The average monthly price of the Level 1 basket increased to roughly $35 in 2011, up considerably from $31 the previous year.

Similarly, average monthly price of the Level 2 basket increased this year as well to roughly $50, up from $48 last year.  The average advertized download speed of the services included in the Level 2 basket is close to 6.5 Mbps, which is similar to the average speed in last year’s study.

The average monthly price of the Level 3 basket also increased slightly to $63, but still remains well below the 2008 price of $69 per month.  The average advertized download speed of the services included in the Level 3 basket is roughly 14 Mbps, which is slightly higher than in last year’s study (where the average speed was 12.5 Mbps).

Lastly, the average price of the new Level 4 broadband service basket is roughly $78 per month.  The advertized download speeds for the Level 4 broadband services included in the study range from 25 to 50 Mbps – the average is close to 30 Mbps.

Roughly half of the Canadian broadband service plans surveyed for this study included monthly usage caps.  For those that do, they range from 1 to 13 GB on the Level 1 service basket – the average is 7 GB per month.  The range for the Level 2 service basket is from 25 to 75 GB – the average is 55 GB per month.  The range for the Level 3 service basket is from 75 to 125 GB – the average is just over 90 GB per month.  There has been little change in these monthly usage caps, on average, compared to last year.

In the case of the new Level 4 broadband service basket, for those service providers applying data usage caps, the caps range from 75 to 250 GB per month – the average was close to 140 GB per month.

The Canadian pricing and usage study was developed by Wall Communications for the Canadian Radio-television and Telecommunications Commission.  The best news for Canada?  Your broadband pricing remains relatively stable, with some package pricing reducing the cost of the broadband component.  Standalone service appears to have increased in price only slightly in many markets.  Increased foreign investment in the wireless marketplace is shaking up wireless pricing, as the hegemony of Bell, Telus, Rogers, and Quebecor are under increasing competitive pressure.  It’s a much sunnier outlook than what is taking place in the country to your south.

For Americans, pricing is headed in only one direction: up.

All charts courtesy of Wall Communications, Inc.

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