Tyson Williams

Sep23

A day later, after Netflix rolled out its service in Canada I am a little worried for its future. Why? Well, unlike in the US, in Canada big cable companies are capping are bandwidth at very low levels. For example a commonly used cable access through Rogers Cable (which cost around $40CAD a month) gives you ONLY 60GB a month. If you want more, they have other plans and you can get it upto 175GB by expect to pay for it through the nose (around $100CAD) – not something average consumer would consider…

Well, I signed up for a free month trial of Netflix yesterday and watched two movies in HD, as I expected my usage of the bandwidth was just over 6GB for that day. In other words, average HD streaming movie which is around an hour and half will take around 3GB of your bandwidth. So with the current bandwidth limits and high costs of going over, I can see Rogers and other providers limiting public from enjoying the Netflix service without incurring additional costs. For this reason I am seeing myself leaving Rogers as my ISP provider in the future and getting my Internet from company called Teksavvy which offers UNLIMITED BANDWIDTH for around $55CAD a month.

Currently, I am using Rogers premium plan which gives me 95GB of bandwidth a month (this plan is no longer available as of August 2010 for new customers – luckily, I locked in just before Rogers lower this plan’s bandwidth cap to 80GB – right after Netflix announcement that they are coming to Canada). I looked at my average usage of bandwidth over the last three months on Rogers web site today and it looks like I have been using 79GB a month. Of course now with Netflix service available in Canada, I can see myself easily reaching 95GB cap going forward. I calculated that the current plan which is $59CAD a month would allow me to continue with my current usage of the Internet and I may be able to watch (streaming in HD) about 4-5 Netflix movies, which should be sufficient. But having unlimited Netflix account, I should NOT have worry how many of those movies or TV shows a month I am “allowed to” watch thanks to Rogers!

What bothers me is the fact that I will have to really stay on top of my bandwidth usage by checking it frequently so I don’t go over bandwidth cap as overage charges are $1.50 a GB! And I think this is not right, why do I need to limit my own online experience because the cable company wants to make more money off me all the time. After being a Rogers customer for 17 years now – I have TV cable, Internet access and cellular service with them for all those years – it looks like I will be moving on elsewhere. I may also consider cancelling my TV cable and cellular service next summer as well when my contract is fulfilled. There are less expensive alternatives out there… Sounds like Teksavvy is the way to go (they have great service reviews and you pay only $55 for a truly unlimited high-speed cable Internet access). But I am NOT sure about an average consumer, will they get smart about it as well? Does Netflix have a chance to survive in Canada, when cable ISP are capping the bandwidth at such low levels? I think the government should step in to investigate the situation. In the Untied States there are caps on bandwidth usage right now as well, but from what I know most cable companies these caps are set currently at a very reasonable 250GB of bandwidth a month.

I will be watching my usage for the next few months and make a final decision later on next year, but it does NOT look good for Rogers right now. They will most likely loose a very loyal customer… because of their greedy policies. Especially as more and more content becomes available online, bandwidth is gold. When you limit it, you will get people upset and they will leave for another company which does not put those limits onto you. Sometimes I think of it in terms of watching TV: imagine you pay for TV cable but you can only watch so many hours of it a month! Would you? I wouldn’t…


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  • Andrew PNJJJ

    I think I’m on board with leaving Rogers, as I’ve used 12G in the last 2 days on Rogers with my netflix trial..

  • http://blog.tysonwilliams.com/ Tyson Williams

    I know what you mean… Anyone who wants to take full advantage of Netflix in Canada cannot do it using Rogers at the bandwidth cap levels they have. And I am not willing to pay more for their higher tier plans, especially when you can go with Teksavvy for $55.00CAD for unlimited Internet cable access.

  • Mdfs

    I want teksavvy, but apparently it’s not available in my area. :( So, I’m stuck with rogers until I can find something better.

  • http://blog.tysonwilliams.com/ Tyson Williams

    Oh, that’s really too bad.

    Have you asked if they are having any plans for expansion in the future?

    I have checked with them and it looks like they are available in my area which is great.

  • Jackie

    I have been thinking of getting Netflix but after reading this I am not so sure I will jump on the band wagon just yet. I am with Rogers for the internet but have Satelite TV with Star Choice. I was thinking of going with Rogers after this coming summer as I will no longer need to pay the outrageous rates for bundles on my satelite ( I have a trailer and you can only get satelite tv up north in most areas but am selling this summer). I was thinking of getting apple tv and then netflix but I am going to have to think about it if the capping of bandwidth is so limited her in Canada. We as Canadians are so placid in reaction to things that are unfair, like this band width capping compared to the states, the cost of importing GM cars that are made HERE IN CANADA, but shipped to the states and then imported back with duties and taxes and frieght, like cost of drugs that in the states are sometimes one tenth of the cost we pay, the cost of electronics, recreational vehicles etc…….. the list goes on. I think the government should step in and have a say with this bandwidth capping. It is ludicrous and robbery!!!

  • JJ

    Netflix and Rogers On Demand are competitors so why wouldn’t Rogers restrict the competitions ability to provide the same service. Those using up all the bandwidth should be paying more, I just want to check e-mail and read some articles. Why should I subsidize those wanting 250GB a month?

  • http://blog.tysonwilliams.com/ Tyson Williams

    Netflix and Rogers On Demand are two different services, Netflix gives you UNLIMITED access to thousands of movies and TV show for one flat fee of $7.99CAD where Rogers On Demand you pay per each movie (around $5.00 each). In the USA all ISP’s cap bandwidth at 250GB not 60GB for basic service… (for the same price). When I originally signed up for Rogers back in the 90′s there were no caps and one for price for all. Now Rogers is taking advantage of customers and milking them like no tomorrow. Over the recent years they turned their unlimited service into tiered level access with tiered prices for a limited service when it comes to amount bandwidth allowed. Sure there tiered prices in the States as well now but they are only limited to the speed of service not the amount of bandwidth.

  • Tysonwilliams

    No point in going to TekSavy, or any other third party ISP. UBB (bandwidth charges) are now the law in Canada. Bell Canada can charge you over bandwidth charges, even when they are not your ISP… All the appeals are gone, all that is left for this to go enforcement retroactively, is for Bell to submit a fee table for bandwidth usage that is approved. There first draft only gives third parties like TekSavy a 3% discount on the end customer fee, with fees beginning after your first 25GB/month. You will be paying more to Bell then you are to TekSavy. Rogers has a similar fee scheduled planned to be introduced, so you will be paying the same fees if you use cable.

    Bell is even cheating more, by offering their own customers a break from some of the fees for services they provide. I expect the third party ISP’s will all be out of business within a year, with the new rules.

  • Bill Riemers

    UBB fees are now the law in Canada. As soon as Bell’s rate schedule is approved, unlimited bandwidth services will be a thing of a past. Expect to paying a premium for any bandwidth after your first 25GB/month. It won’t matter who your service is. Bell owns the line going into your house, and the charges are for the service from the street into your house… Rogers is planning similar fees starting a few months later, so you can’t escape the fees with cable. Expect third party ISP’s like TekSavy to be out of business within a year…

  • Phil M

    You are right to leave Rogers. Both BELL and Rogers will do everything possible to kill Netflix and any other small enterprises that offer free and legal streaming content (ctv.ca, cbc, A&E, Discovery Channel…). The low capping will make it extremely difficult for us to use Skype and any other online streaming medias. CRTCs decision to allow BELL to impose capping and thereby forcing all resellers to do likewise is not what customers want. We the customer lose big time.
    We in Canada are not getting the best for wireless and internet services. BELL and Rogers and the likes are out to make more money then to provide good service products. Shame on BELL, Rogers and CRTC. Sadly, we Canadian are falling behind US and Asia.

  • http://blog.tysonwilliams.com/ Tyson Williams

    May be we need start a major online campaign to discredit CRTC as it fails to protect consumers and against the bandwidth caps imposed by the big Telcos in Canada.

  • Phil M

    I know for sure that the online usage tracking report offered by BELL is not on real time. That means you will not know what your usage is immediately. It take 24 hours or more before you get this information. Technically, you could go over the limit unknowingly and BELL will charge you for the extra G. Ah! Ah!

  • Mtnbiker

    who cares, netflix sucks, if you went to value village you could buy there entire line up for 5 dollars. I would rather have my 15mbps to download music and have fast internet that have it take 20 minutes to download a photo because everyone in Canada has unlimited and decided to watch Uncle buck or some othter 1980 vhs offering. I just gave up unlimited at 2mbps for 15 mbps and 75 gig as speed is more important to me.
    Netflix can’t work due to Canadian movie rights, so don’t blame there downfall of Bell or Rogers.

  • Oskarre

    I couldn’t have said it better Tyson!

  • VoiceOfReason

    They dont want to make more money off of you/ they would be better off without you. Even charging 1.50 / gig over – the would make more per usage of available bandwidth by being able to replace your usage with around 25 users per month. It is simple – bandwidth is not free to the cable company. They use a formula that has to figure in how many subscribers are on the service versus bandwidth used. IF every customer were to use what you do – they wouldnt be able to provide service at the prices you have – You want a full T-1 which only 1.5 Meg with no limits.. then pony up 5 to 700 hundred dollars for that pipe! You could probably get (depending on loacation) about a 25 meg speed unlimited for around 3,000 per month. The average user only uses around 4gigabytes per month and while some will use much more than that/ the ISP couldnt stay in business and have every customer use 95/100gigabytes per month. The rates would go through the roof and the ISP wouldnt make a dime more than they are now. Stop abusing the network and stop whinning – you want to use the bandwidth – then PAY FOR IT! Or get off the pipe – which is what they would rather see you do anyway.. go burn someone elses pipe. If customers continue to use as much as you do – the new provider you mentioned will have no choice but to set a cap for usage.

  • VoiceofReason

    your information is simply wrong. Many ISPs set different caps. some at 60. Which is 15 times the average! The issue isnt competition with netflix – the cable co makes so little on ppv – they could really care less about netflix. Here is a question to consider: Is it the cable co.s job to make sure another company is able to deliver a premium service over their lines/ Should the Cable Co go out of their way to watch out for netflix even to the point that it impacts their other users? Should they have to raise rates on all users to make up for the excessive consumption of a very few (about 1%).. Or is the right thing to do, to expect those that use the extra bandwidth to be the ones that pay for the extra bandwidth? There is no evil plot by the ISPs.

  • Monianne

    Thank you for this enlightening article. I have almost had a heart attack when i got my last Bell phone bill. Who knew you were going to get a huge bill for bandwidth. It was such a shock. I could buy 10 DVD’s to own per month for the extra amount i’m paying Bell. Poor Netflix, i’m sure many people are going to cancel. The CRTC should do something.

  • Fx

    Hey moron – it’s not $700 for a pipe….it’s a fraction of a cent, the infrastrustureès there already, it doesnèt cost them squat. Bell and Rogers are price gouging. Just ask Japan.
    Get educated

  • Fx

    Wow, you are really retarded.

  • Barbarameehan

    I have satalite TV will netflix work
     

  • primal point

     More like voice of ignorance.

  • http://blog.tysonwilliams.com/ Tyson Williams

    I don’t agree with you… I have switched to UNLIMITED PRO Account from TekSavvy and cancelled my Rogers ISP after being with them for 12 years… Now I have no bandwidth caps, I use on average 10-12GB a day and pay less than I did before. 

  • http://blog.tysonwilliams.com/ Tyson Williams

    I don’t agree with you… I have switched to UNLIMITED PRO Account from TekSavvy and cancelled my Rogers ISP after being with them for 12 years… Now I have no bandwidth caps, I use on average 10-12GB a day and pay less than I did before. 

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