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Bell Canada’s Profit Doubles – Without the Need for Usage-Based Billing
In: Communication|Computer|Finances|Internet|Networks|Site Feeds
14 Nov 2009
Last year Canadian incumbent Bell Canada throttled the bandwidth of wholesale competitors, so they couldn’t offer unthrottled services that were better than Bell’s own, throttled DSL service. The company then started pushing for usage-based billing (UBB) for wholesalers, meaning competitors would now be paying for bandwidth on both ends (smaller Canadian ISPs lament this as double dipping and a tactic designed to drive them out of business). Bell Canada has justified the moves by saying they’re financially necessary in order to fund network expansion. However, BCE’s earnings this week indicate the company’s profit more than doubled. Why was usage-based billing necessary again? Surely someday, somebody is going to notice that the North American ISPs who claim expensive new metering models are financially necessary are never able to prove it.
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