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by so33
3134 days ago
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In Ontario, there are three major internet providers: Rogers, Bell, and Telus. For the longest time, their plans (all of them) had bandwidth caps, something that would be unheard of in the United States. They used to be extremely ungenerous, about 100 GB a month or worse. (https://arstechnica.com/tech-policy/2011/04/how-internet-use...) The other internet providers, Bell and Telus, had an opportunity to distinguish themselves here. But they didn’t. They had bandwidth caps too. There was a smaller ISP (TekSavvy) which offered 300GB bandwidth caps (still ridiculous by US standards), which they could offer as a result of a law requiring Canadian ISPs to resell infrastructure to smaller providers (meaning TekSavvy has access to all of Rogers’ customer base). Around 2015, Rogers started introducing plans with higher bandwidth caps, and bandwidth restrictions have relaxed (but they still exist). It took pretty much a decade for innovation-stifling bandwidth restrictions to stop being a thing in Ontario, and arguably only because of a law (i.e. government interference) letting smaller ISPs use big ISP infrastructure. |
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I think that if you are in a market with caps, and you go offer a subscription without a cap, you end up with a bunch of subscribers who will saturate their line. So it makes more sense to slowly compete on increasing the caps, quite like we see in the mobile industry as well. Plus, network capacity goes up (hence I said date context matters).
Personally, I got nothing against caps, as long they're clear and the subscriber is informed about it beforehand. A FUP has a cap as well. If you download 24/7/365.25 on broadband then many ISPs will complain. Not all, but many will. Although nowadays less than say in the 90s or 00s.