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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