Michael Geist suggests rules to govern internet billing practices. He suggests a billing practices regime to parallel the CRTC’s rules on internet traffic management practices (ITMP): Internet Billing Usage Management Practices (IBUMPs).

There is no question that consumers should understand exactly what they are supposed to get for their money. And there is no question that consumers should be confident that any usage sensitive billing are completely accurate. I’m just not convinced that the CRTC needs to weigh in.

While Michael has cast his posting in terms of retail usage based billing, I think he has confused the wholesale and retail regimes. He suggests 4 conditions to test the reasonableness of a retail usage sensitive regime:

First, CRTC approval for UBB has long been focused on addressing network congestion. Indeed, incumbent ISPs now argue that the use of UBB is related to congestion concerns and the need for fairness among all subscribers. In the case of a complaint about UBB retail practices, ISPs should be required to demonstrate that the UBB approach is designed to address specific network congestion concerns.

Second, the UBB model should be the least restrictive possible to achieve its intended goals. Much like ITMPs, this may mean giving consumers the option for accounts that are rate-limited after a certain monthly cap is reached instead of imposing overage charges (as noted above, many ISPs around the world have adopted this approach).

Third, if the ISP has implemented traffic shaping or other technical measures, it should be required to demonstrate why those approaches alone would not reasonably address the same network congestion concerns. This requirement is a mirror image of the ITMP requirement that envisions ISPs relying on network investment or economic ITMPs (ie. UBB) rather than technical ITMPs such as traffic shaping. If traffic shaping is in place, ISPs should be required to explain why that has not adequately addressed the network congestion concerns.

Fourth, while the CRTC should not engage in reviews of the retail pricing or size of monthly data caps, it should, under certain circumstances, be entitled to examine overage charges should ISPs use this economic model (as noted above, many ISPs around the world rate limit rather than impose overage charges). The review of overage charges would only occur in local markets where both the cable and DSL provider employ UBB, thus leaving consumers with limited non-UBB alternatives. In such instances, the CRTC should review overage charges to allow for a reasonable profit but establish safeguards against price gouging in light of actual ISP costs.

These are perhaps better discussed in a wholesale context. After all, usage based billing on a retail level is not necessarily associated with congestion. That linkage was made only when usage sensitive pricing was introduced as a proposal for wholesale access. After all, contrary to the very first point, no CRTC approval was required, nor sought, nor granted for the introduction of usage based billing for retail.

Internet services are now covered by the Commissioner for Complaints for Telecommunications Services (CCTS). As covered on these pages last December, the CRTC has determined that ISPs are subject to reviews and remedies from the CCTS.

Shouldn’t the CCTS be given the chance to show its effectiveness in managing internet billing disputes?

Open Media is asking candidates to declare themselves as pro-internet. It is part of an initiative that has contributed to a raised awareness of digital issues. When I first heard about Open Media’s “pro-internet” campaign, I had to ask,”Why wouldn’t you sign on?” After all, as a colleague put it, if you aren’t on such a list, you must be a Neanderthal. If you aren’t pro-internet, you’re must be against it, right?

But political candidates should be careful to read the fine print on how “pro-internet” is being defined. The fine print seeks to set Canada apart in the world. Open Media wants candidates to agree to have the government regulate retail internet prices:

By signing up here, you are agreeing to stop the pay meter on our Internet if elected.

What does that mean? If elected, candidates will be expected to stop usage sensitive prices. Sounds good if say it quickly enough, but stop to think about what that means in practice. For the majority of customers, it means that prices will increase. But let’s ignore that for a moment, because there are many who believe that the cost should be borne by shareholders or the government (and if profits decline, then the government will be bearing some of that cost).

More importantly, eliminating “the meter” means restricting choice for consumers. It means that at whatever speed, service providers would be forbidden from offering an “entry level” service. As I wrote a month ago, it means that seniors who may not need unlimited throughput wouldn’t have a choice of a lower price plan at the same speed. For half of Canadian households in the lowest income quintile (who don’t even own a computer, let alone have internet access), Open Media wants politicians to commit to restricting the flexibility of service providers to develop creative price plans to get them connected.

I wrote an OpEd a few weeks ago about why we should resist calls to regulate retail internet pricing: Don’t regulate my internet.

Stopping the meter isn’t pro-internet. It is a populist way of demanding retail internet price regulation. The rest of the Open Media candidate commitment, committing “to increase broadband access, competition, transparency, and choice”? I’m all in favour. Who isn’t?

Regulating retail prices won’t increase broadband access and it reduces competition by restricting choice. The pro-internet pledge, as currently phrased with government price regulation, just isn’t pro-internet.

The 2011 Canadian Telecom Summit is now less than 2 months away – the event opens on May 31 in Toronto.

In addition to keynote addresses from 17 industry leaders, there are a number of panels that are examining issues in greater depth. Over teh coming weeks, I’ll try to provide previews of some of these sessions.

For example, this year will include a panel examining security and privacy. More than ever, service providers are trying to compete by improving their customer experience, yet ironically, the need to heighten privacy can sometimes negatively impact the customers’ experience in dealing with the provider. Furthermore, legislation is a key driver for privacy protection and security spending. And, with mobile payments and near field communication (NFC), can privacy and security enable or hinder adoption of these approach and enhance the customer experience? We are pleased that Canada’s Privacy Commissioner, Jennifer Stoddart, will be joining a panel on June 1 at The 2011 Canadian Telecom Summit to examine these issues and more. The panel will also feature Rogers’ Chief Information & Security Officer, the General Manager of PayPal Canada, the Country Manager for ArcSight Canada, a senior executive from Google, along with PwC’s national information security practice leader, David Craig. David is featured in a story about data security in today’s Globe and Mail.

You can download a printable version of our 6-page brochure from the conference website.

Registration fees increase by $250 on May 1. Have you registered yet?

Catherine Middleton pointed me to the release of the Wales digital strategy release, entitled “Action plan to ensure Wales exploits digital technologies“.

The Digital Wales Delivery Plan has action plans for each of the five key priority areas identified in the Digital Wales strategy launched last December, which cover the economy, public services, inclusion, skills and infrastructure.

These are familiar priorities to us in Canada, but Wales has also published 21 specific goals in an accompanying Digital Wales Delivery Plan [pdf, 306KB]:

• Theme 1: Digital Inclusion – An Inclusive, Sustainable and Prosperous Society
  • To work collaboratively to gain a better understanding of digital exclusion.
  • To reduce levels of digital exclusion amongst people aged 50 and older.
  • To reduce levels of digital exclusion amongst residents of social housing.
  • To reduce levels of digital exclusion amongst unemployed and economically inactive.
  • To reduce levels of digital exclusion amongst people with disabilities.
  • To reduce digital exclusion amongst all adults.
• Theme 2: eSkills – Skilled and Competent People.
  • To improve the ICT skills of children and young people.
  • To improve the ICT skills of adults.
  • To make the most appropriate use of digital technologies in the delivery of education, training and support for learners.
• Theme 3: Competitiveness – A Thriving and Competitive Digital Economy.
  • To support and develop a competitive ICT sector.
  • To support and develop a vibrant creative sector.
  • To support sustained investment in research & development in high value-added ICT based products and services.
  • To ensure that all businesses fully adopt and exploit ICT to achieve and maintain a competitive advantage.
• Theme 4: Transforming Public Services.
  • To increase the availability and uptake of useful and useable digital public services.
  • To design and implement appropriate, secure digital platforms which enable public services to be delivered online.
  • To improve the efficiency of ICT services by reducing the procurement, purchase, carbon footprint and ownership/support costs of ICT equipment and services across the public sector.
  • To deliver improvements in the delivery of public services through the innovative use of digital technologies.
• Theme 5: A First Class Digital Infrastructure
  • To ensure everyone has access to a basic level of broadband.
  • To ensure everyone has access to next generation broadband.
  • To improve mobile phone coverage across Wales.
  • To improve digital radio (DAB) coverage across Wales.

Each goal is accompanied by a list of activities and timescale.

The initiative aims to encourage market participants to drive forward with investment in Wales, to see suppliers “extending service coverage, trialling new technologies, locating in, investing in and developing new skills in Wales.” The action plan is particularly readable – I liked the phrase “broadband notspots” to refer to holes in coverage.

In 42 pages, Wales has succinctly set out its digital strategy with 21 specific goals. Not all of the points are applicable to Canada, but its approach and clarity are laudable.

Prior to the election, we had been looking for a May release of Canada’s national digital economy strategy. How will that timetable be impacted?

The Liberal Party released its platform [pdf, 6MB] yesterday and it has a “Digital Canada” component.

It calls for a further $500M in rural broadband programs and a fair, effective wholesale regime for internet access services among its multi-point digital strategy:

With continuing, rapid leaps in computing capacity, data storage and wireless innovation, digital technology and the Internet have the potential to invigorate our democracy, our economy, and our culture, putting the full power of information and action into citizens’ hands.

But in the last five years, Canada has fallen behind more ambitious competitors. The United Kingdom, France, Australia and the United States, for example, have developed far-reaching plans for the digital society of the future, and are introducing comprehensive policies and programs.

A Liberal government will develop and implement Digital Canada, focusing on the following objectives:

• Access to Broadband for All Canadians. Liberals consider access to a high-speed broadband Internet connection essential infrastructure, just as the electricity grid and the telephone network were over a century ago. A Liberal government will publicly tender contracts for private companies to install broadband capacity for the hundreds of thousands of Canadians in rural, remote or northern areas who do not currently have access. To make those contracts economical for private investment, we will provide $500 million in support, allowing Canada to achieve basic high-speed Internet access for all Canadian households within three years. The source of that investment will be the next spectrum auction for wireless licensing rights.
• Closing the Digital Divide. Research shows that Internet skills lead to real economic benefits, including lower prices for consumers and more competitive small business. A Liberal government will work with all partners to promote digital life skills and training, in particular for older Canadians and lower income families.
• Fair balance Between Creators and Consumers. Digital technology offers many new opportunities, but enjoying content without compensating its creators shouldn’t be among them. At the same time, consumers should have freedom for personal use of digital content they rightfully possess. Liberals have worked to pass effective copyright legislation, including a private copying compensation fund instead of any new tax on consumers.
• Flourishing Canadian Content, Culture and Identity in Digital Media. Canadians should continue to have access to ever more Canadian stories and Canadian content in the Digital Canada of the future. New media should provide vibrant and rewarding new avenues for expression by Canadian artists. The public broadcasters, Radio Canada and the CBC have crucial roles to play in achieving these objectives.
• Competition in a Healthy Business Environment that Rewards Innovation. Consumers deserve choices and carriers that invest heavily in the advanced services and infrastructure of tomorrow deserve the chance to earn a fair return.
• An Open Internet. The Internet is today’s principal conduit for the free flow of ideas. To ensure it fosters the uninhibited exchange that innovation requires, Canada’s Internet environment must remain open. Internet traffic management must remain neutral, and maintain the open sharing of legitimate technologies, ideas and applications. A fair, effective wholesale regime is also essential to allow smaller Internet service providers to lease broadband infrastructure at fair prices.
• Open Government. Canada’s federal government must embrace information technology and open data in order to improve services to Canadians and make government more transparent and accountable for public spending. Putting Statistics Canada and other government data online wherever possible, after meeting all privacy and other legal requirements, will strengthen Canadian democracy, help create and disseminate knowledge and spur innovation.
• Protection from Digital Threats. Just as openness and transparency are the sources of boundless innovation and creativity on the Internet, these same features are too often exploited for criminal purposes causing significant personal and economic disruption, harm to children, and even threats to national security. A Liberal government will make security a priority in Digital Canada, working to advance it with the private sector and other governments at home and abroad.

The platform accounting page appears to be suggesting that the upcoming 700 MHz spectrum auction will generate $5B in revenues for the government. The Liberals propose to recognize that revenue as $500M per year for 10 years to fund their programs. That is using an asset sale to fund programs; contrast with my post a couple months ago.

The issue of reform to regulations on foreign direct investment in the telecom sector is not addressed, although the Liberal platform does speak about “strengthening the Investment Canada Act to make foreign investment reviews more transparent.”

The Liberal platform recognizes an issue I have raised on these pages [such as here] – the need to target programs aimed at getting lower income Canadians on line, although no funding appears to be allocated for this.

Last week, I asked for Canada’s political parties to lay out their national digital strategies. The Liberals have gone first. How will the Conservatives and NDP deal with Digital Economy issues?