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4 June 2009June 4, 2009

Is net neutrality economically efficient?

Economic Note on the effects of regulation of prices and service offerings of Internet service providers

Is net neutrality economically efficient?

In November 2008, the Canadian Radio-television and Telecommunications Commission (CRTC) denied a request from the Canadian Association of Internet Providers which wanted Bell Canada to cease its network “traffic-shaping” practices. The CRTC concluded that Bell’s measures did not violate the law and were not discriminatory since the company applied the same policies both to its wholesale and retail customers. However, the CRTC has decided to examine the broader issue of traffic management by Internet service providers – and thus indirectly to tackle the issue known as “net neutrality.” This proceeding will include a public hearing that is scheduled to begin in July.

Links of interest

Media Release:
“Net neutrality” would get in the way of network development

Forced access to telecommunications networks: Economic Note on the impact of forcing telephone companies to share access to their infrastructure, May 28, 2009

In November 2008, the Canadian Radio-television and Telecommunications Commission (CRTC) denied a request from the Canadian Association of Internet Providers which wanted Bell Canada to cease its network “traffic-shaping” practices. The CRTC concluded that Bell’s measures did not violate the law and were not discriminatory since the company applied the same policies both to its wholesale and retail customers. However, the CRTC has decided to examine the broader issue of traffic management by Internet service providers – and thus indirectly to tackle the issue known as “net neutrality.” This proceeding will include a public hearing that is scheduled to begin in July.


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