Rogers Increases Maximum Bandwidth Cap Violation Penalties

by Jordan Richardson on March 3, 2010

According to Michael Snider out of the Globe and Mail, Rogers is raising its rates on bandwidth cap violations as of March 1. This could cost customers more should they exceed the caps put in place by their service plans.

As of the beginning of March, Rogers has increased the maximum penalty of exceeding the cap to $50, which is up from the previous penalty of $25. Now the per-gigabyte fee has dropped a quarter from $1.50 to $1.25, but that maximum penalty’s increasing means that Rogers can effectively charge more for exceeding the cap overall.

Rogers charges customers by the gigabyte when it comes to overage fees and the cap corresponds to a specific customer service plan. Prior to March 1, Rogers was able to charge customers the per-gigabyte fee up to $25. With the changes, Rogers can now charge up to $50 in per-gigabyte fees.

This move is probably going to save those users who never even consider going over their bandwidth cap a bit of money on those occasions that they exceed the numbers, but those customers who regularly exceed their planned cap digits will start to see Rogers’ capability of being able to charge up to $50 as an incentive to change their plans.

That means that a lot of users taking part in Rogers’ Extreme plans may need to bump those up to the Extreme Plus plans. And that massive Ultimate plan may look even better for those whose normal internet use dwarfs the confines of the Extreme Plus plan. When you consider that the Extreme Plus plan clocks in at 125GB of monthly usage before the cap kicks in and the Ultimate plan offers 175GB of pre-exceeded cap space, it may be worth it for users to shift upwards to the bigger plans.

Now is there any reason to complain about what Rogers is doing here? Probably not. Indeed, the only users that will be subjected to this sort of overage charge will be those whose downloads routinely go above their bandwidth caps. And with a number of plans available from Rogers to satisfy users of various types, it’s hard to imagine anyone being dissatisfied with the selection.

This move will not dissatisfy most of Rogers’ average consumers and will, in fact, only mean trouble for a relatively small niche market that makes up a minority of Rogers’ customer base. If anything, it’s the large scale data user that costs Rogers more money to operate than it is the average users.

In this respect, Rogers can conceivably save average users a little bit of money while ensuring that those who really use the bandwidth wind up paying for it the most.

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{ 4 comments }

ballz March 14, 2010 at 8:19 am

I understand that paying for the internet means paying for bandwidth but why is it so expensive? A few months ago they offered unlimited plans, why monetize on bandwidth now?

Below the 42nd parallel Verizon’s CEO states, “we want our customers to use the internet, no caps or overage fees”.

I don’t understand! People at home use more bandwidth on cable TV, it’s the exact same 1s and 0s going through their pipes. We easily dump upwards of +300-400GB of bandwidth alone, so why is TV encouraged? Oh… right. their advertisers … because cable is their bread and butter.

If it’s a “small niche” that goes over, why should it even remotely matter? Shouldn’t Rogers be looking at their users as a whole instead of squeezing minorities high and dry. I think people should understand that downloads don’t necessary have to be “illegal”, allot of people are turning to TV on the internet like iTunes TV 1.36GB / (46min episode) and 5-6GB/ film. Anti-virus and software patches/updates eat up allot of bandwidth. Lossless music downloads & HD content, even if it’s on YouTube.

Canadian Internet is no longer affordable, i’ll either be visiting the public library or by going over 15TB/month by redundantly downloading the same content over and over again to put my +$50 overage to excellent use.

salman April 19, 2010 at 10:41 pm

^^agreed with ballz 100%

i got charged $50 over this month and managed to argue it down to $25 for this month only. Well… starting next month I AM GOING TO DOWNLOAD EVERYTHIN 5 times. infact, i will leave winamp streaming all night when i sleep just so that I use over 10TB to make sure rogers pays the $50 it charges me straight to seimens or bell or whoever owns those lines.

kurow October 14, 2010 at 3:43 pm

There are many ISPs provide more than 100 to 200 GB/month or unlimited bandwidth with lower rate than Rogers charge it’s subscribers. It’s time to dump Rogers.

Jordan Richardson October 14, 2010 at 7:52 pm

Kurow, you can trust me when I say that I’ve been looking into other ISPs for a while now. It is absolutely true that there are “many” ISPs that provide more in terms of a usage cap, but Rogers, Telus or Bell still hold the lines. And they’ve all been resistant when it comes to meting out broadband to rural communities, so that puts many users in the lurch.

Add to that the continued pressure for usage-based billing and the smaller ISPs will start dropping their plans. They simply can’t afford to keep up with the big guns in terms of speed or service and have to tack on extra charges to cover their bottom lines.

The fact is that the Big Three have got this country over a barrel in terms of internet service and “dumping Rogers” is a more than difficult task for the average consumer. We need real choice, not false choices still using Rogers’ lines.

It’s funny how times change. I now look back on this article, just a few months later, and completely disagree with most of what I’ve said.

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