Canada's telcommunications regulator will start hearings Monday into whether it should or can impose rules on Internet service providers who are fighting online congestion with traffic management.
The Canadian Radio-television and Telecommunications Commission (CRTC) will hold six days of hearings on the practices of some of the biggest operators in the country, including telco Bell Canada, and cablecos Shaw Communications and Rogers Communications.
It's an issue that touches the hot buttons of government regulation of the private sector, competition between operators and smaller Internet service providers (ISPs) they sell connectivity to, privacy, the right of customers to get promised online speeds, freedom of speech and what's been dubbed 'net neutrality' --the desirability to keep providers from using traffic management to favour their businesses.
The main Internet wholesalers are "a bunch of bullies in the marketplace trying to impose their will to keep very high, greedy margins," says Rocky Gaudrault, CEO of TekSavvy Solutions, an Ontario-based.ISP that buys connectivity from Bell whose investigation led to the hearings.
After some subscribers complained of slow online speeds, an association of Internet providers complained to the CRTC that Bell Canada's traffic-shaping strategy was discriminatory. The commission dismissed the complaint in November, but decided to hold a hearing because the case raised broad issues.
Providers who do traffic management insist it reduces Web congestion caused by subscribers using peer-to-peer file sharing applications to upload bandwidth-clogging videos and music.
As uses such as IPTV and the sale of movies over the Web spread, providers fear Internet congestion is only going to get worse.
In its pre-hearing written submission to the commission, for example, Shaw insist that if it didn't use traffic management there would be a "catastrophic degradation" in service to its subscribers.
Opponents say the threat is overblown, worrying that traffic management instead threatens public access to the Internet. Others say the issue is one of who will control innovation on the Web.
For example, in its written submission, the Canadian Film and Television Production Association, representing several hundred content creators, said it fears trafficthrottling will result in Web providers "becoming the new gatekeepers of the Internet, with preferential access being granted to those favoured by ISPs."
It's already happening, Pelmorex Media, which runs The Weather Network cable TV, Internet and wireless sites, alleged in a written submission. "There are a number of commercial or business practices that are being employed by wireless network operators that limit access to their networks," the submission said in part. "Carriers routinely attempt to exercise control over the content or influence the meaning of the content they carry for the public." No wireless operators were named.
Groups like the producers and Pelmorex insist operators be forbidden from engaging in discriminatory traffic shaping.
However in its submission Telus, a Vancouver-based telco which doesn't do any traffic management, argues that the federal Telecommunications Act already forbids unjust discrimination.
Small wonder that CRTC chairman Konrad von Finkenstein recently said that when the commission sponsored an online forum earlier this year on traffic management it sparked a "lively debate."
The hearings will likely be at least that.
In addition to the dozens of written submissions the commission has received, 28 companies or groups will testify over six days including Internet operators, network equipment maker Juniper Networks, Canadian traffic management switch manufacturer Sandvine and consumer organizations.
Broadly, the commission is looking for answers to four questions:
--What are acceptable Internet traffic management practices; --Should ISPs disclose their traffic practices;--Does the use of Internet technologies for the purpose of Internet traffic management raise privacy concerns;--Is there a need for the commission to specify what practices are acceptable for wireless carriers?
Providers believe they're in a bind: No matter how much they spend expanding capacity to meet demand, they say, it's never enough.
In its written submission, for example, Telus says "Canada's carriers are investing billions in broadband wireline and wireless infrastructure to meet their customers' ever-growing appetite for data services ... However, the threat of new regulation
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