Canadian cable provider Shaw raised the ire of its Internet subscribers with plans for an in-house online video service. The $12 standard or $17 HD monthly Movie Club will let users watch both on TV and on computers but, notably, exempts the service's data from its bandwidth caps. The policy effectively serves as a handicap against iTunes, Netflix, and others by subjecting their use to overage fees that Shaw's own service won't face.
The decision likely violates the country's Telecommunications Act, which bans companies from choosing to "unjustly discriminate" against a particular company or person by charging different rates. Where a relatively modest viewer will have the option of watching other services at lower prices, heavy users will have to either absorb the overage costs or switch to Movie Club.
It's unclear if Shaw was unaware of the legal issues, although this isn't likely given other providers in the country. Rogers' On Demand Online service, while not competing in the same physical markets, explicitly tells viewers that any use counts equally towards bandwidth caps.
Shaw may be banking on its greatly increased caps to allay concerns. At 400GB, most wouldn't run into the caps. The strategy could still create problems for frequent HD viewers or whole households where the total use could lead movies into tipping the balance. A typical 720p, two-hour movie uses 4-6GB depending on the service and often doubles in size with 1080p.
Netflix has complained about low bandwidth caps and has offered lower bitrates to make sure its service is still viable for those who can't afford the most expensive Internet service or to pay overage fees.
The country's telecom regulator, the CRTC, hasn't commented on Shaw's news but is facing calls upon it to act. Critics have been skeptical it would enforce laws. Many CRTC officials are often former employees of the major carriers they're supposed to police and have been accused of often trying to protect or reward their former employers. Until the government stepped in, the CRTC had been determined to let big carriers force usage-based billing on independents, often using the same talking points as the incumbent providers. [via Michael Geist]
By Electronista Staff
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