The CRTC has ruled against the capping of wholesale bandwidth.

Under the CRTC’s new capacity-based approach, large telephone and cable companies will sell wholesale bandwidth to independent ISPs on a monthly basis. Independent ISPs will have to determine in advance the amount they need to serve their retail customers and then manage network capacity until they are able to purchase more. Alternatively, large companies can continue to charge independent ISPs a flat monthly fee for wholesale access, regardless of how much bandwidth their customers use. Both billing options give independent ISPs the ability to design service plans and charge their own customers as they see fit.

The CRTC has decided there should be two wholesale pricing models, neither of which include “provisions that would require independent ISPs to impose bandwidth caps on their retail customers“.

The first is a “Capacity-based model”, would contain a monthly access rate for each of the independent ISP’s retail customers, a monthly capacity charge, offered in increments of 100 megabits per second, and any applicable ancillary charges, such a monthly interface charge and associated service charges.

The second is the existing “Flat-rate model”, would of course contain a monthly access rate for each of the independent ISP’s retail customers, and any applicable ancillary charges, such a monthly interface charge and associated service charges.