CRTC launches review of zero-rating, sponsored data

Net neutrality advocates welcomed the CRTC’s launch of a new consultation on “differential pricing practices” for both wireline and wireless data plans Wednesday, a process that will see a public hearing kick off on Oct. 31. Tamir Israel, a lawyer with the Samuel-Gloshko Canadian Internet Policy and Public Interest Clinic, said in a phone interview that having “this broader review that’s going to put in place a more-principled framework and look beyond ad-hoc scenarios that have come up so far is a good step.” He added: “I think having a clear set of principles will be to everyone’s benefit.” Public Interest Advocacy Centre (PIAC) executive director John Lawford said in a phone interview that “it’s a big issue, and it probably always should have been made into a big issue… better late than never.” Lawford acknowledged that having “a top-to-bottom look at this is risky, because we could lose some measure of net neutrality rules in Canada, I suppose, if it went really badly. It could go just as badly the other way,” given that questions about data caps and the cost of data will come up, he said. The CRTC said Wednesday in a press release that differential pricing “occurs when the same or a similar product or service is offered to customers at different prices. An example is when an Internet service provider exempts a particular application, such as a music or video streaming service, or a set of applications, from data charges.” In its notice of consultation, the commission said sponsored data, “which occurs when a third-party application provider enters into an arrangement with an ISP to provide free or discounted use of its application to consumers,” is another example of differential pricing. The CRTC has tackled the issue in recent years, but only in proceedings on specific services. Last year, it ruled that TV providers couldn’t exempt their mobile-TV services from wireless data caps. BCE Inc. is appealing that decision in court. More recently, in September, the CRTC was asked to rule on the undue-preference complaint against the Unlimited Music service offered by Quebecor Inc.’s Videotron, which allows mobile customers to listen to a number of music streaming services without incurring data charges. The CRTC said Wednesday it would base its ruling on the Unlimited Music case on the “broader record on differential pricing practices,” and said it would add the comments received in the Videotron case to the public record of the new consultation. While the commission could have made a decision earlier on the undue-preference complaint instigated by PIAC, Lawford said that “as long as it’s part of the record, and we have a good old talk about it, it’s probably going to be beneficial for everybody to know what the rules are.” CRTC chairman Jean-Pierre Blais said in the press release that differential pricing is becoming more common in both Canada and other countries. “Service providers appear to be attempting to distinguish their services and attract customers through such practices. This consultation will enable us to better understand the potential benefits and risks to consumers, application providers and Internet service providers,” he said. “Our aim is to develop a clear and transparent regulatory approach that will provide certainty. The CRTC, like other regulatory agencies in other jurisdictions, continues to be concerned about the impact of such practices on net neutrality.” The notice of consultation added that regulators in other jurisdictions have also been looking at the same questions, including in India, the European Union and the U.S. Telecom consultant Mark Goldberg took a different point of view from the net-neutrality advocates in an email Wednesday, stating that it’s “concerning that the CRTC would consider regulatory intervention into retail Internet pricing that can only result in reduced consumer choice.” He said that differentiated pricing is nothing new, and it’s not becoming more common. The deadline for comments is June 17. The CRTC asked interveners to consider a number of specific questions, including what types of billing practices constitute differential pricing, where there are differential pricing practices that don’t raise any regulatory concerns and what potential benefits and risks such practices pose to consumers, application providers and ISPs. It also asked respondents whether such practices “give ISPs the ability to act as ‘gatekeepers’ that are able to determine or influence which Internet applications are more likely to be accessed than others by consumers,” whether such practices are “examples of market forces working as they should, or … examples of anti-competitive behaviour,” as well as how such practices relate to the Telecom Act. Israel said Wednesday that “we’ve had enough scenarios now in Canada and abroad to take a step back and look to see if there’s some principles we can distil and a framework that we can develop,” whether that’s a tweaking of the current rules or a whole new framework. While ad-hoc situations “are really important because they make sure that the regulatory framework is grounded in actual practice,” he said that “at the same time, if you’re not looking at the big picture when you’re ruling on each individual thing, you’re constantly having to refine it in ways that are very unpredictable.” — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Charelle Evelyn at cevelyn@thewirereport.ca

CRTC launches review of zero-rating, sponsored data

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CRTC launches review of zero-rating, sponsored data

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