{"id":5335,"date":"2012-01-09T20:34:11","date_gmt":"2012-01-10T01:34:11","guid":{"rendered":"http:\/\/mhgoldberg.com\/blog\/?p=5335"},"modified":"2012-01-09T20:34:11","modified_gmt":"2012-01-10T01:34:11","slug":"artificial-distinction","status":"publish","type":"post","link":"https:\/\/mhgoldberg.com\/blog\/?p=5335","title":{"rendered":"Artificial distinction"},"content":{"rendered":"

Why do we still have a regulatory differentiation between business<\/a> and residential<\/a> users on a wholesale level?<\/p>\n

I understand the retail purposes for market segmentation and to help with cross subsidization. But it seems to me that mandated access to wholesale services should be more cost based. The CRTC agreed. In the case of business services<\/a>, the CRTC said:<\/p>\n

The Commission has decided that the flat rate tariff structure for wholesale business high-speed access services remains appropriate. The Commission has also decided that rates for these services should be based on the incumbent local exchange carriers\u2019 (ILECs) incremental costs of providing the services plus an appropriate markup.<\/p><\/blockquote>\n

And for residential services<\/a>, the Commission said:<\/p>\n

The Commission has also decided that rates for either model should be based on each of the individual large cable and telephone companies\u2019 costs to provide the service plus a reasonable markup, and further, that these markups be comparable for all cable and telephone companies.<\/p><\/blockquote>\n

So if these rates are cost based, and if the commission got those rates right, why is it a problem if wholesale ISPs route residential traffic over a business tariff? If the tariffs are costed properly, then it shouldn’t be a problem – costs are being recovered.<\/p>\n

Filings associated with wholesale internet services<\/a> leave me believing that the artificial segmentation for wholesale purposes should be abandoned.<\/p>\n

In the case of wholesale internet access, Bell is concerned that the tariffs may have incentives for competitors to “circumvent Capacity Based Billing charges by diverting residential traffic onto a business interface.” In other words, the CRTC regime for wholesale has somehow made it less expensive to carry business traffic than residential. Does that strike anyone else as bizarre?<\/p>\n

If the tariffs were actually cost based with the correct driving variables, then it shouldn’t matter what the source of the traffic is on a retail level.<\/p>\n

There are small businesses that operate from homes; there are large businesses with very low use compared to some power residential users. The need to segregate business and residential users and guard against ISPs “gaming” the system by putting residences into the business traffic mix should be telling the regulators that their decision needs to be revisited.<\/p>\n

Something is wrong with the wholesale regime.<\/p>\n","protected":false},"excerpt":{"rendered":"

Why do we still have a regulatory differentiation between business and residential users on a wholesale level? I understand the retail purposes for market segmentation and to help with cross subsidization. But it seems to me that mandated access to wholesale services should be more cost based. The CRTC agreed. In the case of business …<\/p>\n

Artificial distinction<\/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-5335","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nArtificial distinction • Telecom Trends<\/title>\n<meta name=\"description\" content=\"Why do we still have a regulatory differentiation between business and residential users on a wholesale level? 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