CRTC’s web traffic decision wins praise although privacy and higher bills could still be an issue

Yesterday’s CRTC ruling on net neutrality has earned Canada’ s big telcos and cablecos a victory by allowing Internet traffic management, but the decision may have unforeseen repercussions in the form of privacy issues and higher bills for users, warns one technology analyst. The decision could also put Canada at odds with the U.S., where the regulator today approved new draft rules designed to prevent Internet providers from blocking or slowing traffic on their networks. In decision 2009-657, The CRTC attempts to deal with the issue of privacy by ruling that ISPs cannot collect, use or disclose personal information gleaned from its traffic management practices. But Carmi Levy, a senior VP for strategic consulting with the Toronto-based marketing firm AR Communications Inc., says the ruling doesn’t go far enough because the technology still allows ISPs to peak inside packets. “If you use the Internet to conduct secure transactions and communications, now this throws the security of that communication into question as the ISPs implement tools and processes that allow them to dig deeper into the kinds of the traffic that they are carrying,” he says. While he’s careful to concede that this does not mean that ISPs are going to be “reading everything and reporting on it,” Levy notes that the ability to do it now exists. “It opens up another potential area of vulnerability that especially sensitive clients and users need to be aware of.” The Public Interest Advocacy Centre has said it generally supports the new privacy safeguards, although cautions that the decision effectively means that “ISPs own your content and own your Internet connection. You just got owned,” PIAC counsel John Lawford said in a statement. PIAC argued during the net neutrality hearings that the Telecommunications Act required ISPs not to interfere with customers’ Internet traffic unless such traffic was clearly harming other users of the network and not otherwise. “ISPs should act as common carriers and just carry traffic, not as broadcasters deciding what you watch” added Lawford, “but now they can decide what gets through – and how much they get to charge you for the privilege.” Net neutrality or throttling has been a contentious issue pitting ISPs and users. Opponents argue that it is illegal for ISPs to control Internet traffic. On the other hand, ISPs contend that the practice is necessary to ensure that networks are not clogged by users who transfer large peer-to-peer files. Key among the items in the ruling are regulations that allow ISPs to manage web traffic. But in doing so ISPs must employ Internet traffic management practices (ITMPs) for valid reasons like preventing congestion on the network. As well, ISPs must ensure that consumers receive prior notice of any throttling, 30 days for private users and 60 days for companies. ISPs must also ensure that ITMPs cause as little disruption as possible to investments and consumers. The CRTC says these actions will enable consumers to make informed choices about the Internet services they use. But Levy says while the net neutrality debate seems officially over, the ruling is a first step towards a regulated Internet and gives ISPs the power to determine who accesses content, the time it is accessed and the manner it is accessed. Levy also warns that the ruling could also result in higher bills for small businesses owners who operate from home, and who use high bandwidth applications such as VOIP, video conferencing or rich multi-media collaboration. “If you use them during the day, which is high demand time, your ISP, as it moves to a variable demand infrastructure, may in fact charge you more for doing that. While they float the possibility of nighttime access being less, that doesn’t help you if you are running a home business.” FCC supports net neutrality The CRTC’s decision has garnered some praise for setting a precedent on net neutrality. Mark Goldberg, a telecom analyst with Mark H. Goldberg & Associates, wrote on his blog that while the CRTC may not have the ability to enforce all the provisions of the Telecom Act, the message is clear. “Let me say it again - no other country in the world has a set of rules in place to deal with net neutrality. No other place has regulatory certainty, enforcement processes and a clear framework for defining and dealing with violations of principles that balance the interests of users and service providers.” The U.S. is getting closer to developing its own framework, although its regulator favours a different approach than Canada. Today, the Federal Communications Commission (FCC) approved draft rules designed to prevent ISPs from network throttling. The proposal is still subject to public comment and expected to face stiff opposition from the telecom industry. In releasing the proposed rules, FCC chair Julius Genachowski said in a statement the proposed rules are an important step towards developing a legal framework that ensures a free and open Internet. “Given the potentially huge consequences of having the open Internet diminished through inaction, the time is now to move forward with consideration of fair and reasonable rules of the road, rules that would be enforceable and implemented on a case-by-case basis," Genachowski stated.

CRTC’s web traffic decision wins praise although privacy and higher bills could still be an issue

News | 10/22/2009 8:18 pm EDT

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