A consumer’s guide to CRTC rulings on Internet pricing (1)

blackbox-2

I’ve been gathering reactions to last week’s CRTC decisions on wholesale rates for Internet access. My takeaway is a lot of people are having trouble understanding what the hell it all means. So in this series of posts I’m going to provide some plain-language context.

Today, I’m covering broadband competition, and the unusual structure of Canada’s wholesale and retail Internet access market. In the next post, I’ll look at how the CRTC arrives at wholesale costs and what that will mean for your residential bill. Finally, I’m going to focus in the third post on the UBB controversy of two years ago and how that relates to the recent rulings.

A pig in a poke

Communications services play an increasingly important role in our lives. Yet the evidence is that awareness among consumers about what they’re getting when they buy broadband is stunningly low. Continue reading

Infringement assault on TekSavvy: Voltage Trolls come north

Mandatory mittens for men on casual Fridays has been shown to reduce sexual harrassment at Voltage*

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Some updates and changes (Thursday, December 13)

Monday’s court hearing. Voltage has managed to schedule a hearing at the Federal Court for Monday, December 17, which leaves little time for targeted TekSavvy subscribers to organize their defence. TekSavvy couldn’t notify these customers until it had churned through a huge pile of logs, in order to correlate subscribers with the thousands of numeric IP addresses Voltage dumped on them. And it wasn’t until December 7 that TekSavvy was served with the final Notice of Motion, the document that compels TekSavvy to attend at court where, Voltage hopes, it will be ordered to turn over all relevant customer information so the bullying can proceed.

Many people I’ve talked to seem to have missed the crucial point that TekSavvy itself is not a defendant in this case as it is not liable for any putative infringing activity on its network. In Canada, when a customer requests a file from, say, The Pirate Bay, and the customer’s ISP simply provides the platform over which to have the file delivered, that ISP is deemed to be acting as a mere carrier. The ISP is not deemed to be a “user” nor considered to be “authorizing” the download. Hence TekSavvy is not a defendant in the Voltage claim. I raise this point simply so that interested parties, especially possible defendants, are clear on TekSavvy’s legal standing in this action. Continue reading

In today’s Globe: Gen D – the dumbed-down generation lives

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Update: Not in a reading mood? You’re in luck. Here’s Devin with the spoken version. You know what to do…

Listen to

Great minds think alike. One of those minds would belong to a “hip, articulate 36-year old computer whiz” name of Sang-Jin Bae. Thanks to Devin H for pointing me to a story about his views in today’s Globe and Mail: “Are we breeding a generation of app-loving, web-addicted digital illiterates?

Yes.

In addition to being a big-time digital animator, Mr Bae teaches. And what he says about the students who turn up in his classes is pretty strong vindication for the unkind words I’ve had to say about Millennials and the malarkey about their being “digital natives”…

“When kids come into my class they divide into three groups,” he says. There are the pure geeks who love technology. There are those trying to understand. And then there is the biggest group: “Those who couldn’t care less.”

Remember, these kids have signed up for highly technical instruction on computer applications used for animation. Even with my cynical attitude, I’d have guessed that a group like this would not have prompted comments like the following from Mr Bae:

“The kids I have, and that is roughly two dozen of the brightest young digital artists a semester, often have no idea what Microsoft Word is. They can’t tell a Mac from a PC. And forget Excel,” he says. He struggles to get his students to use basic computing etiquette.

Continue reading

Digitally divided: it’s not Ottawa’s problem (2)

Oops.

A day late, a dollar short… The frickin site crashed yesterday, to the chagrin of untold thousands of frustrated visitors. In the meantime, I got an update from Stats Can (see previous post), and landed on a really snarky backlash to the recent NYT piece (Matt Richtel, May 29) - Wasting Time Is New Divide in Digital Era - in which poor people are portrayed as the real online time-wasters. I’ll get back to that after I finish with Ottawa’s digital sins.

“Even when you give poor people access to technology, they don’t know what to do with it! Might as well give a paleolithic tribe access to a chip fab, pffft.”

–Christopher Mims, MIT Technology Review, May 31

[continues from previous post]

3 – IC has excluded consumers from digital policy – except as workers and online shoppers 

Ever since Tony Clement, the previous Industry minister, began mooting a strategy for the digital economy, he left plenty of signs that he intended the beneficiaries to be his party’s business constituents. And that his approach had nothing to do with a broadband strategy. The distinction between a strategy for the digital economy and a digital strategy for everybody is not a trivial one. Two years ago, the Tories launched a public consultation process, dressed up with a 40-page backgrounder entitled “Improving Canada’s Digital Advantage” (uploaded here). I wrote a post shortly thereafter in which I laid out evidence of the government’s anti-consumer bias. To cite one small point:

“The digital consultation has tossed consumers over the brink, while lavishing its attention on the needs of business. Here’s a semantic clue: The consultation background paper uses the word investment over 70 times; it uses the word affordable exactly once.” Continue reading

Digitally divided: the DC haves vs the Ottawa have-nots (1)

 

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>> Updated with correction on CIUS

As noted below, I sent an inquiry to Industry Canada about whether or not the Canadian Internet Use Survey had been cancelled. The question was passed on to Stats Can, and yesterday their media relations office got back with this message:

“Statistics Canada will conduct the Canadian Internet Use Survey in 2012.  Collection will take place in October and November.”

I stand corrected – though if you look below under what was “2 – Industry Canada has cut off funding for the CIUS” (now with strikethrough), I’m sticking by my guns on the other comments.

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FCC’s Genachowski in San Diego to declare war on the digital divide

In my last two posts I took Genachowski to task for his retrograde stand on data caps. Today I come to praise him. Genachowski gave a pep talk last Thursday at San Diego’s Horace Mann Middle School. He was there to promote a Connect2Compete pilot program. San Diego is one of 20 school districts in the country “participating in the FCC’s Learning-on-the-Go program, which is helping schools implement mobile learning solutions like interactive digital textbooks” (transcript of JG’s talk here).

Connect2Compete is an ambitious outreach program, designed to close the digital divide by helping millions of disenfranchised Americans become onliners. The offer is a smart one-two punch: 1) get folks the gear they need, free or cheap; then 2) help them learn the many things they need to know to use the gear comfortably and become engaged, real-life onliners.

C2C tackles the tough social policy issues surrounding Internet adoption and requires unaccustomed behavior for bureaucrats: escaping the Beltway, meeting citizens on their own turf, and dispelling the belief held by millions, especially low-income families, that they have no reason or right to be on the Internet. Moreover, the cost to taxpayers is pretty much zero. This bargain is made possible by a public-private collaboration that brings together a number of non-profits, plus some big IT firms, working hand-in-hand with officials from the FCC. The agency has released a 5-page brief outlining the details (I’ve uploaded the pdf here). Continue reading

Sorry for UBBing: the CRTC giveth, Katz taketh away?

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Funny how we’re all still talking about last week’s CRTC decision on wholesale pricing for Internet access. The one thing pundits and stakeholders have agreed upon is to disagree about the possible outcomes of the decision. Especially when it comes to the money.

Take Nick Kyonka’s piece in last week’s Wire Report, which begins thusly:

“Incumbent Internet service providers (ISPs) and the smaller players who lease access to their networks are scratching their heads over new billing rates for wholesale Internet access and what those rates mean for long-term competition in the Canadian Internet service market.”

There’s lots more. Michael Geist and Peter Nowak have each been mulling the decision three times in the last week, including posts from each of them yesterday designed to interpret the various interpretations we’ve heard so far: see The UBB Decision Aftermath: Is the Pricing a Killer? (Geist); and On UBB, the fat lady has not yet sung (Nowak).

I have information that may help clear up some of the confusion. Rather than provide you with a hard-headed analysis of network costing issues, however, I’m going to indulge in a little textual exegesis… Continue reading

Digital divides: UBB as part of a much bigger broadband mess

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The blogosphere has been abuzz recently over the FCC’s bold, brave outreach initiative, Connect to Compete. Not in Canada, you say? I do say, since there are four good reasons why Canadians haven’t got a snowball’s hope in hell of seeing a program of this nature until at least 2015:

1) Leadership. The FCC has been making headway with a real broadband strategy over the last 18 months, along with a set of network neutrality rules, because the vision comes from the top – the White House. Harper and his cabinet have never cared about world-class retail broadband, because that would put them on the wrong side of the consumer vs business divide.

2) Social policy. The most laudable thing about the FCC’s action is the agency’s deep conviction that the digital divide is a social issue requiring vigorous demand-side policies. C2C is a people policy, not a wires-and-boxes policy based on the kind of supply-side thinking that has led our nation to the bottom of the broadband barrel, if I may mix my containers. Continue reading

Games, throttled: complain about Rogers, blame the CRTC (2)

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Complaints resolution flowchart, as appended to Rogers’ Sept 27 letter to the CRTC

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[Includes correction to the "plot" timeline]

As the news breaks (see petition link below)

I was just finishing this post (#2) when Jason Koblovsky sent me the much-anticipated response from Rogers to last week’s “warning” letter from the CRTC. The letter, which runs about 1200 words, was addressed to the CRTC’s Joanne Baldassi over the signature of Ken Thompson, Rogers’ Director of Copyright and Broadband Law. Get your red-hot pdf here.  

The Rogers letter is an exquisite piece of evasion, obfuscation and self-congratulations. It indicates to me that when you put together the Commission’s ass-backwards approach (consumer complaints are first and foremost the consumer’s problem), along with Rogers’ business philosophy (the customer is always wrong), then the use of end-user complaints as a policy tool under the new guidelines won’t change a damn thing. The plot so far:

CGO fights Rogers, CRTC over WoW for 2+ yrs > CRTC issues warning to Rogers (Sept 16) > CRTC issues new complaints guidelines (Sept 22) > Guidelines get tepid reception (esp from CGO) > Rogers responds to CRTC warning (Sept 27) > CGO issues statement (“something doesn’t smell right”) > Petition launched at OpenMedia.ca (here).

Jason K sends the following correction: “The World of Warcraft case is almost a year old.  It’s been ten months since the complaint was handed into the CRTC in January 2011. The CAIP and myself brought up the issue of misclassification prior to the WoW complaint in 2008.  The CRTC has known about this misclassification problem now for over 3 years.”

I’ll parse the Rogers’ letter in the followup post, along with any early reactions from the blogosphere. Meanwhile, please have a look at the following comments from some of the usual suspects (including me) on what the new guidelines do and don’t do for consumers.

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 Subscriber, heal thyself

The CRTC’s new “guidelines” on the handling of ISP complaints landed last week to decidedly mixed reactions among those who care about consumers (Telecom Information Bulletin CRTC 2011-609). PIAC counsel John Lawford dropped me a comment (see prior post) in which he expressed satisfaction with the general direction:

“Not a model of total clarity but a start. CCTS-like procedure, some transparency requirements and some threats of sanctions. I am concerned the actual online complaints form is not prepopulated with the requirements for this type of specialized complaint – nor the requirements the CRTC will be looking at to judge the complaint (see paras. 13-14 of the Information Bulletin).” Continue reading