Date Published: 
02/02/2011

An apparent policy gap is opening up between the government and the CRTC on the issue of Usage Based Billing (UBB) or the long-term future of so-called "unlimited bandwidth" plans.  These unlimited plans have been offered by smaller ISPs and were to be terminated by the recent CRTC decision, but that decision has been set aside temporarily.

This is the next in a series of government interventions to over-turn CRTC decisions (including changing the foreign ownership restrictions that opened up the mobile phone market to foreign-financed new entrants).

The govenment's stated motives are to protect consumers at a time when analysts agree that bandwidth consumption is set to rise steadily and substantially over the next few years.  The situation creates uncetainty especially for big firms that would normally invest in growing their networks - a long term investment strategy whose economics may be changing. Or not. 

 

Risk Management Perspective: 
  • Regulatory framework for telecoms, cable companies and ISPs is evolving. 
  • Someone is likely going to pay more  - posing a financial risk - at a time when Canada already has high bandwidth usage rates. 
  • As the regulatory regime changes, both big and small firms may need to adapt.
Industry Group: 
Growing Companies
Industry: 
Information Technology
Industry: 
Telecommunications
Country: 
Canada
Risk Class: 
Strategic
Risk Class: 
Financial
Risk Class: 
Industry
Risk Type: 
Business Strategy (Model)
Risk Type: 
Political
Risk Type: 
Regulatory
Risk Type: 
Public Sector

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