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Metering for the masses

The big tech story in Canada these days is the CRTC's Nov.

The big tech story in Canada these days is the CRTC's Nov. 1 decision to allow Internet Service Providers to charge customers based on usage - both the companies that piggyback on the networks owned by the big ISPs and their actual broadband customers.

According to OpenMedia, which organized a petition seeking 12,000 Canadian signatures to fight the proposal, the decision to allow metering will crush innovative services, Canada's digital competitiveness and "your wallet."

I have mixed feelings about this. I signed the petition, but only because there are too many unknowns as to how metering will actually be implemented.

As far as the innovation thing goes, I'd hate to see small startups hampered if the product they sell suddenly gets popular and their bandwidth requirements outstrip their resources.

I'd also hate it if tech companies already operating in Canada decide, after getting a higher bill for their bandwidth usage, to relocate somewhere else. What would happen if video game companies based in Montreal, Toronto and Vancouver decide to relocate to any of the other cities - Houston, Seattle, Dublin, London, etc. - that are bending over backwards these days to attract high tech companies?

As for the wallet crushing, I would hate to open my bill at the end of the month and discover that a neighbour hacked into my wireless and downloaded 19 seasons of The Simpsons on my dime.

There's also an issue of scaling to consider as the Internet is being asked to do more than ever. For example, who has a Netflix account, or ditched their cable box to download shows online? Who gets all of their music online through iTunes, Zune and online radio? Who uses the cloud to store documents, photos and video? The network that provides access to the Internet has to grow in order to handle all that new broadband-sucking traffic.

On the one hand, the massive costs of expanding network capacity are part of the reason why I'm sympathetic to companies like Bell and Rogers for requesting a metered solution. Creating all that new bandwidth isn't cheap, and customers paying slightly more in the short term could drive a huge boost to Internet speeds and capacity that would be better for everybody in the long run.

On the other hand, I'd like some assurances that this isn't a cash grab, that metering will actually result in improvements to the network rather than giving companies the ability to charge and profit more without making any new investments in infrastructure.

I also have some concerns about implementation:

1) If companies are going to charge people for using more bandwidth than they're allotted under their monthly plan, I'd like to see a system in place where people who use less get a rebate. If ISP's are going to charge bandwidth hogs then it's only fair that they reward bandwidth misers.

Come to think of it, why have a monthly fee all? Why not pay a basic hookup fee and then meter all of our Internet usage on a scale that is similar to today? For example, if ISP's are providing 5 GB of downloading for $40 per month, then why not meter it to the megabyte? If you use 2.5 GB, then you should be charged $20. If you use 1 GB then you should be charged $8. If you use 10 GB then your bill is $80.

2) Before I would willingly accept metering, ISPs would have to change the way they work. For example, I should have the option of automatically shutting my Internet connection down the moment I reach my limit, rather than finding out I went over at the end of the month when the bill arrives. I should know at any time how much I've used and how much is remaining so I can make an informed decision whether it's worth downloading that movie or game.

3) Some downloads should be exempted. E-mails, for example: you don't really have a choice whether to accept an e-mail or not, there's a lot of spam, and if somebody decides to send you 40 photos from their Alaskan Cruise then it shouldn't count towards your overall usage.

Another exemption should be for security and software updates. There's a big difference between downloading movies from torrent sites and downloading the most recent virus definitions for Microsoft Security Essentials. And if a company finds a security or compatibility issue for software - or that software needs to be updated -then I shouldn't get dinged for that.

If ISPs were smart, they'd also overlook some online purchases. For example, if I download a game from Steam or GOG and pay for it, then it shouldn't count. Why? Because it would kill e-commerce, and one of the reasons the web exists in the first place. It would hamper innovation, as OpenMedia suggested, and encourage more waste in the form of disks and other packaging.

It would also kill Apple's whole model of app development, where programs can be downloaded over the Internet. The irony is that the companies that are asking for metering are the same companies selling people smart phones that run on apps.

4) Metering should be completely transparent. You should know how much, to the penny, you're going to be charged for going over your limit and the moment those charges kick in. Overage rates should include taxes, fees, etc. so they're easily understood by consumers. And here's the thing: unless companies are charging you exact amounts for your overage (e.g. a penny a megabyte instead of $10 for another gigabyte), it's really not fair. If they opt for the second model, charging you per gig for going a meg over the limit, then your unused bandwidth should carry over to the next month.