Bell cancels usage-based internet billing | Print |
Written by Brigitte Truong   
Tuesday, 29 March 2011 12:31

Bell Canada has announced that it is pulling the plug on a proposal to implement usage-based billing to wholesale Internet companies.

 

Bell_Canada_2008
Telecom giant Bell Canada decides to implement new plans for their internet clients.
Canadian Federation of Business’ Vice-President of National Affairs, Corinne Pohlmann called the move good news for smaller businesses.

“We were worried that the proposal would contribute to rising costs given the fact that small business companies will be using the Internet more and more," Pohlmann told thedailyplanet.com on Tuesday.

"They’re relying on these types of services to be competitive globally, so this is very good news,” she said.

Instead of having fixed rate structures the Canadian Radio-Television and Telecommunications Commission had encouraged, Bell is introducing what it calls an Aggregated Volume Pricing model, which it says will provide their clients with pricing flexibility per customer.

“By enabling wholesale ISPs to purchase network capacity based on overall volume of usage, rather than on a per-customer basis, the new model gives wholesale ISPs greater flexibility to offer service packages based on their own business objectives and requirements," Bell said in a statement emailed to thedailyplanet.com on Thursday.

The plan could allow small companies to access a much broader market, Pohlmann said.

“On paper it sounds like a better alternative because it would offer competitive services to ISPs and understand how much they can charge versus having Bell telling them no and how much they’d have to charge high volume users,” said Pohlmann.

“This is a giant step forward for the Stop the Meter campaign, and a victory for those who support competition and choice in Canada’s Internet service market,” Steve Anderson, Executive Director of Openmedia.ca, a non-profit communications organization based in Vancouver told CBC.ca.

The CRTC’s initial plan had Openmedia.ca and other organizations objecting to the move.

Prime Minister Stephen Harper was among those who were against the proposal last month when he asked the CRTC for a review on Twitter.

“We’re very concerned about CRTC’s decision on usage-based billing and its impact on consumers," Harper said at the time.



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