Sunday, February 6, 2011

Internet billing May cause a federal election in Canada?.

Now here's an issue which could cause a federal election in Canada.



It's Internet billing.



The Canadian Radio-television Telecommunications Commission ruled last month that there won't be unlimited Internet access in this country. The CRTC ruled that large Internet service providers, or ISPs, such as Bell, would be allowed to meter bandwidth to independent providers which buy it wholesale, then resell it to consumers at a lower price.



It also forces large ISPs to sell bandwidth to wholesalers at a 15% discount, which the CRTC said would help boost competition.



CRTC boss Konrad von Finckenstein said the ruling was fair because it avoided penalizing ordinary Internet users for heavy downloaders. About 14% of residential Internet users are responsible for 83% of its traffic.



Von Finckenstein said it's an easily understood principle, that if one uses the Internet more than the average customer, then it costs more.



But the federal government said no to the CRTC ruling.



Industry Minister Tony Clement said that decision will be over-ruled by the Conservatives if its not changed.



He left no doubt about that, even after the CRTC said it would review its ruling.



"Regardless of the outcome of the CRTC review, this ruling will not be implemented," Clement said.



Von Finckenstein emphasized the CRTC didn't agree to a review because of the industry minister's position, but because Bell and another Internet provider asked for a delay in the implementation of the ruling. So the deadline to implement the new regulations has been pushed back 60 days from March 1.





Or, just in time for the federal election expected this spring.



Granted, this issue might give Prime Minister Stephen Harper an edge when Canadians go to the polls. About 550,000 people use independent ISPs in Canada and would have been directly affected by the ruling. That's only about 6% of Internet users, but given low voter turnout in recent federal elections...



But an on-line petition of Internet users gathered more than 250,000 signatures. Harper has also weighed in personally, demanding a review.



All of this raises several questions.



One is why even have a CRTC when the government of the day can over-rule its decisions? Isn't the regulator supposed to be an arms-length agency?



Or, are CRTC rulings only OK when they jive with the government's position?



Harper and the Conservatives, of course, are taking advantage of the CRTC's ruling to make it look like they're sticking up for the little guy (or gal) who's trying to get a good deal on Internet services.



And by bullying the CRTC into reviewing its decision, the government has effectively delayed it until an election decision has been made.



That will likely come next month when the Conservatives bring in their federal budget, and the Liberals, Bloc Quebecois, New Democrats and a few odd independent MPs decide whether this is an issue worthy of an election.



Corporate tax breaks in the budget have been fingered as an issue the opposition says it can't stomach. But whether it's an issue that resounds with Canadian voters is another question.



Not many believe business should pay less taxes while the rank and file see their taxes jacked higher, even if the tax break does, in theory, create jobs.



But everyone can and does understand more expensive Internet fees.



Not that this will be a factor if or when the writ drops.