BCE backtracks on plan for Internet usage billing

Bell Canada (BCE Inc) has withdrawn a controversial proposal to increase the cost of Internet services after intense public outrage attracted political attention and a new regulatory hearing.

The question now is whether Bell’s move will be enough to quell the public and political anger sparked by the plan. In its original proposal, Bell asked the federal communications regulator to let it charge small Internet service providers, which lease space on its network, by the amount of data each of their customers downloads. Instead, Bell is suggesting an aggregated volume pricing scheme, whereby smaller ISPs are charged for the data used by all their customers, instead of being charged for each customer who goes over set limits. For consumers on the unlimited plans of wholesale Internet providers, Bell’s capitulation means that the huge price increases and onerous download caps many feared will not be implemented, at least for now. The issue will again be debated at regulatory hearings in July.