How Canadian Internet Users Are Getting Screwed (via @mgeist)


Fri, Jan 14th, 2011 10:00 by capnasty NEWS

Canadians are going to be paying more and more for Internet access and will be getting less and less bandwidth as a result of it. The culprit? Lack of competition (with Bell and Rogers actively stunting the growth of any such thing) and a federal regulatory body, the CRTC, without any balls.

As it works, right now, smaller ISPs can connect to the large infrastructure of telephone or cable companies by paying a rent. This would allow the new company to gain customers, start earning a profit and, eventually, build their own infrastructure. A good idea, but as journalist Peter Nowak explains on his site, in Canada that didn't quite work out as planned:

Guess which situation unfolded in Canada? You got it: the rents are too high. According to a Harvard report (PDF, on page 168), "Canada has the highest monthly charge for access to an unbundled local loop of any OECD country." I believe the term for that is: booya.

The result: small Canadian internet service providers can barely eke out a living, let alone think about building networks to compete with the likes of Bell and Rogers.



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