Most Canadian internet, wireless packages have data caps, report finds

Internet usage limits and overage charges for those who exceed them are a feature of mostinternetand wireless packages in Canada, leading to confusion and potentially expensive bills for consumers, says a new report from OpenMedia.

The Vancouver-based group, which advocates on behalf of an openinternet, compared homeinternetand wireless data plans across Canada as part of a campaign calling for a ban on data caps.

It found widespread inequality amongofferings across the country.

• CRTC reviewing controversial 'zero-rating' in internet plans
• Videotronfirst to lift streaming music data limit
• Net neutrality: What you need to know

For home internet, unlimited usage was offered to all Bell Aliant customers in the Atlantic provinces. But data caps are your only optionif you go with Cogeco in Quebec or Shaw in Alberta and B.C. Most other internet providers had packages with a range of data caps, with unlimited usageavailable for a higher fee or if you bundle internet with TV.

For mobileinternet, unlimited data is a dream for customers of the Big Three Bell, Rogers and Telus as all their wireless packages have data caps. Unlimited data is only available in Saskatchewan from SaskTel and in Manitoba from MTS.

And the price for a given amount of data varies widely from province to province, even with the same carrier. For example, a 1 GB plan from Rogers costs $75 per month in Alberta, Ontario, B.C. and the Maritimes, but just $40 in Saskatchewan and $45 in Manitoba.

• Consumers turn to booming black market for cheap cellphone deals
• 'Black market' offers cheap plans outside Manitoba, Saskatchewan
• MTS sale to Bell has some Manitobans worried about prices

OpenMedia says Manitoba, Saskatchewan and Quebec have "distinct offerings" due to a fourth regional competitor MTS, SaskTel and Vidotron respectively.

The analysis found that most home internet providers had an average of eight data brackets with different data caps,far more than major U.S. providers, which typically had just two.

"Canadian wireline internet plans are confusing," OpenMedia said in a news release.

Exceeding caps can be costly, report says

The data caps start as low as 20 GB,just enough to stream 45 minutes of standard definition TV or movies per day, OpenMedia notes.

Customers who exceed their limit pay $1 (Cogeco) to $4 (Bell) per gigabyte over the limit, which can add up quickly, the report said.

• ANALYSIS |Why 'zero rating' is anew battleground

"Upon exceeding your limit, just four HD episodes of The WalkingDead (at approximately 3 GB perhour) would blow past 10GB of data in overage," it said. "Depending on provider, that could add upwards of $40 to your monthly bill."

Really about cord-cutting

However, the report notes that some carriers such as Bell provide unlimitedinternetto customers who bundle theirinternetwith TV services. It alleges that "ISPsuse the threat of overage fees and data caps to herd customers away from third-party streaming" and says that suppresses innovation.

"For too long, the telecom giants have used every excuse in the book to justify these unfair caps," said Katy Anderson, OpenMedia's digital rights specialist, in a news release. "But the reality is they're using these caps to discourage cord-cutting and keep Canadians trapped in expensive cable TV packages that represent terrible value for money."

David Christopher, a media spokesman for OpenMedia, said people who exceed their data caps whenthey watch television online are more likely to be persuaded to buy a cable package that they can bundle with their internet plan.

Christopher said this is an example of telecoms"trying to shore up their cable TV service, which has been a money spinner for these companies for decades."

"It'san artificial way that they're using to prop up their cable TV services and we simply think that's really unfair on consumers."

The group aims to make its case during aCRTC consultation on differential internet pricing and 'zero-rating' the practice of offering different internet pricing for certain kinds of internet use, such as streaming. The deadline to commentwas recently pushed back by a couple of weeks to June 28.

• CRTCreviewing controversial 'zero-rating' ininternetplans

Bellsays its packages are 'generous'

Rogers did not specifically respond to the report, but company spokeswoman Jennifer Kett emailed a statement toCBC News.

"Over the last few years we've included even more data in our packages, and introduced Rogers Ignite Unlimited packages to keep Canadians connected worry-free."

Bell spokesperson Jacqueline Michelistold CBC News that it offers internet plans with "generousamounts of bandwidth usage as well as unlimited usage options."

She said usage-based plans are common in both Canada and the U.S. and that they are the most economical for customers.

"Usage-based options are common to major ISPs in both Canada and the U.S., and they recognize both the tremendous capital investment required to manage explosive growth in internet data usage, and the idea that those who use more pay more, those who use less pay less," she said.

She added that Bell's satellite and internet tvservices are the most popular in the country.

CBC News has also reached out to Telusfor comment onthe report. Theyhave not yet replied.