CRTC reversal may not improve internet service
Last Updated: Thursday, February 3, 2011 | 8:44 PM ET
By Peja Bulatovic, CBC News
Related
A reversal of the CRTC decision to impose usage-based billing on smaller internet providers would be good for Canadian consumers, but a lot needs to be done to modernize internet service in Canada, industry figures suggest. (Sue Ogrocki/Associated Press) A reversal of the CRTC decision to impose usage-based billing on smaller internet providers would help some consumers but do little for the overall quality of service in Canada, industry figures suggest.
Industry Minister Tony Clement said Thursday that he expects the CRTC to reverse the ruling announced earlier this week.
"And if they do not do this, we wanted to make sure the cabinet would take its responsibilities to do the same," Clement told reporters.
The CRTC later announced it had already decided to review its ruling favouring Bell, which wanted to put usage caps on companies that rent its internet access.
While many consumers may celebrate the government's intervention as a triumph over big business, industry observers say it's important to put the achievement in perspective.
"This is a big victory in terms of what was on the agenda, but we certainly have a lot further to go," said Steve Anderson, founder of OpenMedia.ca, the website responsible for submitting a 357,000-signature petition to Clement, urging him to intervene.
"We want him to be bold on this decision — he can be a champion if he wants to … but the decision is not going to deal with our real, underlying structural problems."
In terms of overall speed and reliability, Canada's broadband networks were ranked a respectable 15th out of 72 countries last October by a study team at the University of Oxford and the University of Oviedo.
But a look at other factors tells a different story.
The 72-country rankings used a complex metric called "broadband quality score," which compares download speed, upload speed and connection responsiveness, then the level of broadband penetration in each country.
But up-to-date raw figures from netindex.com indicate the quality of internet service in Canadian homes is lower than the October rankings suggest. Netindex.com uses the same source of raw data — from www.speedtest.net — as the study that ranked Canada 15th, but compiles it in almost real-time.
Canada comes 36th in terms of average download speed, at 9.52 megabits per second (Mbps), according to netindex.com. At that speed, a user can download a CD-quality song in three or four seconds.
This is slower than both the U.S., which ranked 31st, and the United Kingdom, which ranked 29th, and far behind South Korea at 36.56Mbps, which has always ranked first in recent years.
Average upload speeds available to Canadians are even more striking in the netindex.com rankings. Canada is in 64th spot globally, at 1.35Mbps, behind smaller countries with less developed infrastructures, including:
- Mozambique, ranked 62nd, at 1.41Mbps.
- Swaziland, ranked 61st, at 1.43Mbps.
- Kenya, ranked 58th, at 1.52 Mbps.
- Kazakhstan, ranked 40th, at 2.10Mbps.
At those speeds, it would take roughly 20 seconds to upload the same three-minute CD-quality song.
South Korea shows the highest upload speeds as well, offering speeds nearly 15 times faster than Canada's, at 20.11Mbps.
Most telling, perhaps, is where Canada stands in terms of value. The most recent figures, compiled in 2009, indicate that monthly subscriptions for broadband in Canada are expensive relative to the rest of the world.
Harvard's Berkman Center for Internet and Society ranked Canada 25th out of 30 countries in a report that looked at pricing for services ranging from low-speed to high-speed connectivity.
This combination of slow connection speeds and expensive monthly subscriptions suggests that, although reversing the CRTC's recent ruling would be step forward, much needs to be done to modernize Canada's broadband industry.
Anderson, of OpenMedia, hopes a reversal of the CRTC decision will signal a trend and launch industry-wide changes that will ultimately benefit consumers, rather than telecom companies.
"I don't think communications will ever be the same in the country," he said after Clement announced his response to the CRTC ruling. "The relationship between the people and communications policy has changed now. People don't want to go back to being frustrated."
Source: www.netindex.com
Source: www.netindex.com
Share Tools
Top News Headlines
- Canadian Pacific strikers face back-to-work legislation
- Labour Minister Lisa Raitt is prepared to end the Canadian Pacific Railway strike if necessary, after both CP and the union rejected a proposal for voluntary arbitration by the government-appointed negotiator on Sunday. Raitt says she is "extremely disappointed." more »
- Syrian regime denies role in Houla massacre
- The UN Security Council condemned the Syrian regime at an emergency meeting Sunday, holding president Bashar al-Assad's military responsible for the massacre of more than 100 people, dozens of whom were children younger than 10 years old. more »
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Neighbour may have helped find missing kids in Mexico
- Two Winnipeg children who had been missing for nearly four years were found in Mexico after a man raised concerns about his neighbour, according to a private investigator. more »
Latest Business Headlines
- Bankia asks Spain for €19B
- The board of directors of Spain's troubled bank, Bankia, has asked the Spanish government for €19 billion ($24.5 billion Cdn) in financial support. more »
- EI reforms aim to boost employment, Flaherty says
- Finance Minister Jim Flaherty defended his government's proposals to change employment insurance, saying the aim is to remove "disincentives to employment." more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Ottawa moves to limit foreign investment reviews
- The federal government is raising to $1 billion the amount of foreign money that can go into a Canadian company before the investment is reviewed. The review has been used in the past to block foreign takeovers of MDA and Potash Corp. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 11576.47 | 0 |
| DOW | 12454.83 | 0 |
| NASDAQ | 2837.53 | 0 |
| SP 500 | 1317.82 | 0 |
| NYSE COMPOSITE | 7534.32 | 0 |
| AMEX | 2227.37 | 0 |
| TSX-VENTURE | 1309.27 | 0 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Seniors float above Montreal's Quartier Latin
- Accused in blast that killed Alberta mom handled her funds
- Remains found in bag on Cape Breton river ID'd
- Neighbour may have helped find missing kids in Mexico
- Quebec students and province to resume talks
- Lip-dub marriage proposal an internet hit
- Syrian regime denies role in Houla massacre
- B.C. NDP calls for unity in fighting coast guard closure
- Canadian Pacific strikers face back-to-work legislation

