Technology: Wrapped in Wicked Wires

Our connected world heavily relies on Internet access, but with the weighty costs of connectivity, Canadians might want to switch out the leather and tighten their belts with an Ethernet cable.

According to studies by the Organization for Economic Co-operation and Development (OECD), the cost of Canadian Internet access is substantially higher than other developed nations (see sidebar). With the tight data caps imposed by major internet service providers, costs to Canadians are becoming constricting.

Through Bell, for example, data caps range from 2 gigabytes (GB) of downloading for $28.90/month, up to 75 GB for $62.90/month. A standard 25 GB package goes for $38.90/month. Varying download speeds aside, you’re paying roughly $14.45/gig on the bottom and $0.87 on the top end.

A recent study by Michael Geist, a law professor at the University of Ottawa who holds the Canada Research Chair in Internet and E-commerce Law, has suggested it costs as little as $0.07 to send one gigabyte of data.

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This may be of no concern for the causal web surfer, but for the online-active, this is an issue. A standard movie on Netflix, for example, uses about 1 GB per hour and over 2 GB for high-definition content, meaning 30 hours of streaming (about 15 movies) could devour upwards of 70 GB on Netflix alone. Netflix Canada recently cut bit rates by two-thirds to loosen the strain, meaning 30 hours of streaming now only expends about 9 GB – much nicer, but a pain for cinephiles craving crisp, high-definition content.

Even if the above-mentioned Internet packages seem reasonable, there’s always the fine print anchoring costs down. You only get those prices for the first year and if bundled with other Bell services. Oh, and there’s the monthly modem rental fee, Internet security options and one-time activation fee
as well.

Rogers lists similar rates to Bell, but also offers some higher caps on the top end. You’ll pay, for example, $27.99/month for 2 GB (about $14.00/GB), $46.99/month for 60 GB (about $0.80/GB), $59.99/month for 100 GB (about $0.60/GB) and while a recently added, more substantial 250 GB package is available, it costs $99.99/month (about $0.40/GB) before taxes and additional charges.

To put these prices in perspective for Ontarians, at the end of June, Shaw Communications began offering consumers a 400 GB cap for a standalone price of $74.90/month (about $0.19/GB) before taxes and additional charges. Shaw’s Internet service, however, is predominatley located in Western Canada.

If Internet costs have tied you down, you may want to monitor your household’s Internet use, limiting your family’s downloading and streaming, or consider switching to an Independent ISP – but that may raise costs elsewhere if you’re bundled with other services from larger providers. You can also write your local MP to voice your concern over these costs.

Netflix Subscribers
At the end of March 2011, Netflix announced that in response to Canada’s enforced data caps, it would reduce video quality by two thirds, meaning 30 hours of streaming now only uses 9 GB instead of the potential 70 GB of streaming previously devoured by HD content.

Bell & Rogers Internet Services
Rogers: Before taxes, modem rental fees and additional Internet security options, you can pay anywhere from $27.99/month for 2 GB to $99.99/month for 250 GB. If you happen to go over these limits, you can pay from $0.50 to $5.00 for each additional GB, up to a max of $50/month.
Bell: Similarly, before taxes, modem rental fees and additional Internet security options, Bell subscribers can pay $28.90/month for 2 GB and $62.90/month for 75 GB. As well, if you go over these limits, you can pay up to $2.50 for each additional GB, up to a max of $60/month.

OECD Broadband Statistics
Range of broadband prices for a monthly subscription – including line charge – September 2010
Japan     14.82 – 49.44
Greece     21.17 – 35.63
Germany     23.44 – 58.83
Mexico     23.44 – 117.70
U.S.A.     24.95 – 144.95
Canada     28.47 – 145.81
Italy     30.68 – 46.63
France     33.67 – 70.14
Spain     44.48 – 83.5

(Bell, Rogers and Shaw Internet pricing was pulled from the respective company’s websites on July 28, 2011)