CRTC’s new usage-based wholesale ISP billing model is based on capacity not volume

The Canadian Radio-television and Telecommunications Commission (CRTC) has reached a decision to impose a new wholesale internet access billing model, referred to as the ‘approved capacity model’, applicable where a network provider proposes to charge independent internet service providers (ISPs) separately for usage. In the residential broadband service segment, the approved capacity model incorporates the following components: a monthly access rate for each of the wholesale ISP customer’s retail subscribers; a monthly capacity charge, offered in increments of 100Mbps; and ancillary charges, including a monthly interface charge (where required) and associated service charges (as applicable). Facilities-based broadband network operators Bell Canada and MTS Allstream are now expected to alter their wholesale billing models to the new framework, whereas other major fixed network operators including Telus Communications, Shaw Communications, Bell Aliant and SaskTel, will be permitted by the CRTC to continue to charge their wholesale residential ISP customers using their existing flat rate models, which provide for unlimited internet bandwidth usage.

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OVETEL CRTC’s new usage-based wholesale ISP billing model is based on capacity not volume