CRTC Issues Internet Traffic Management Policy

On October 21, the Canadian Radio-television and Telecommunications Commission (CRTC) issued its new policy governing the ability of internet service providers (ISPs) to manage or "shape" the internet traffic that is transmitted across their networks.

In Telecom Regulatory Policy CRTC 2009-657 Review of the Internet traffic management practices of Internet service providers, the CRTC ruled that ISPs will be allowed to continue to manage traffic on their networks but the CRTC also established the framework to which ISPs must adhere. ISPs will not be required to seek prior approval from the CRTC of their traffic management practices, but will be required to defend those practices in response to specific complaints.

As part of its new policy, the CRTC is also requiring ISPs to be much more transparent about the traffic management techniques that they use by posting information on their websites detailing the measures being taken and the impact that these measures will have on subscribers.

The CRTC undertook the review of ISP's traffic management practices after smaller ISPs that use Bell Canada's network to resell internet access services complained that Bell was slowing down some of the internet traffic generated by their own customers. The CRTC dismissed the complaint against Bell Canada, but initiated a policy hearing to examine the traffic management practices of the large ISPs including Bell, Rogers, and Shaw.

These ISPs took the position that dramatic growth in amounts of internet traffic, and in particular the traffic associated with the transmission of large video and audio files over peer-to-peer file sharing networks, was causing congestion in their networks resulting in reduced quality of service for all subscribers. The ISPs said that it necessary in some circumstances to limit the amount of capacity consumed by peer-to-peer applications to avoid this congestion.

The CRTC's new policy framework on these traffic management practices includes the following requirements:

  • ISPs must disclose to subscribers specific details regarding the use of traffic management practices including the reason the practice is being used; who will be affected by the traffic management practices; when the traffic management will occur; what type of traffic is subject to management; and how internet speeds will be affected.
  • ISPs must provide 30 days notice to retail subscribers, and 60 days notice to wholesale customers, of any changes to the traffic management practices being implemented.
  • Facilities-based ISPs are permitted to manage the traffic of other ISPs that resell internet access service using the facilities-based ISPs' networks, but the traffic management of wholesale traffic cannot be any more restrictive than the traffic management of the ISPs' own retail customers.
  • Facilities-based ISPs must include a description of their traffic management practices in the CRTC-approved tariffs that govern the use of network facilities by third-party ISPs.
  • ISPs must not use personal information collected for the purpose of traffic management for any other purpose and must not disclose that information.

In response to a complaint to the CRTC about a particular ISP's traffic management practices, the ISP must describe the traffic management measures being used, explain the need for, and purpose of, the measures and demonstrate that any discrimination or harm to a secondary ISP or end-user are minimal. The ISP must also explain why investing in additional network capacity or implementing economic measures (such as usage-based billing) would not be sufficient to address any congestion issues.

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