{"id":4638,"date":"2011-04-08T06:01:06","date_gmt":"2011-04-08T10:01:06","guid":{"rendered":"http:\/\/mhgoldberg.com\/blog\/?p=4638"},"modified":"2011-04-07T19:52:58","modified_gmt":"2011-04-07T23:52:58","slug":"pricing-transparency","status":"publish","type":"post","link":"https:\/\/mhgoldberg.com\/blog\/?p=4638","title":{"rendered":"Pricing transparency"},"content":{"rendered":"

Michael Geist suggests rules<\/a> to govern internet billing practices. He suggests a billing practices regime to\u00a0parallel\u00a0the CRTC’s rules on internet traffic management practices (ITMP<\/a>):\u00a0Internet Billing Usage Management Practices (IBUMPs).<\/p>\n

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.<\/p>\n

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:<\/p>\n

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.<\/p>\n

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).<\/p>\n

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.<\/p>\n

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.<\/p><\/blockquote>\n

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.<\/p>\n

Internet services are now covered by the\u00a0Commissioner for Complaints for Telecommunications Services<\/a> (CCTS). As covered on these pages last December<\/a>, the CRTC has determined<\/a> that ISPs are subject to reviews and remedies from the CCTS.<\/p>\n

Shouldn’t the CCTS be given the chance to show its effectiveness in managing internet billing disputes?<\/p>\n","protected":false},"excerpt":{"rendered":"

Michael Geist suggests rules to govern internet billing practices. He suggests a billing practices regime to\u00a0parallel\u00a0the CRTC’s rules on internet traffic management practices (ITMP):\u00a0Internet 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 …<\/p>\n

Pricing transparency<\/span> Read More »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","two_page_speed":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4638","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nPricing transparency • Telecom Trends<\/title>\n<meta name=\"description\" content=\"Michael Geist suggests rules to govern internet billing practices. 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