Netflix Chief Content Officer Ted Sarandos slammed Canada’s Internet Service Providers (ISPs) last week, calling the rates we’re charged “almost a human rights violation.”
Sarandos is referring to the high prices and low bandwidth caps imposed by Canada’s “big four” ISPs: Bell, Shaw, Telus and Rogers. If consumers exceed these bandwidth caps imposed by these ISPs, they are forced to pay an overage amount of several dollars per gigabyte.
The poor state of broadband internet has already prompted Netflix to lower the quality of streaming in Canada.
“The problem is [Canada has] almost Third World access to the Internet”
Ted Sarandos, Netflix Chief Content Officer
Where we as Canadian consumers are getting ripped is in the markup the ISPs are imposing on this bandwidth. In an interview with the Vancouver Sun last year, David Buffett, chief executive of Radiant Communications Inc, stated “the cost associated with transmission and switching on a modern network is a non-issue — less than five cents per gigabyte and dropping fast.”
Canadian ISPs, then, are looking to mark up their bandwidth costs by 3,900%. CNN called the 900% markup of movie theater popcorn America’s Biggest Rip-off; at 3,900% markups, there’s little doubt Canadian ISPs are guilty of pulling off Canada’s biggest rip-off.