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.



You may also be interested in:

WiFi -- Why Are We All Still Paying for This?
Canada Spies on Its Citizens, Too
"Google, Facebook, Microsoft, and the other tech titans have had to fight for their lives against their own government."
Jogger injured after using Twitter as he ran
The Failed Cult of Bitcoin