A couple things you aren't taking into consideration. Bell and Rogers were heavily subsidized by the Canadian government (recall "information super highway") to build national fiber networks. So tax payers have paid for the backbone of our big providers. They have imminent domain rights to property that smaller ISPs will never have, so the CRTC mandated that they allow smaller ISPs to use their last mile access.
Some of the arguments put forth by Bell/Rogers/Shaw is that a small percentage of users were taking up most of the available bandwidth and that it was increasing costs. In reality, it is the practice of basing your required bandwidth to support X number of customers on the lowest bandwidth users, then taking the results and averaging it over a 24 hour period. Divide that number by 10 to get your 10:1 standard telco over-subscription and you get the current bandwidth problem. These bandwidth problems aren't as bad as Bell and Rogers are letting on. Distributed content networks like Akamai allow them to keep streaming the content local. Youtube, Bittorrent and other media sites are the big targets for Bell and Rogers because it allows Canadians to download tons of content without paying a PPV fee. The really big problems stem from the fact that ISP A and ISP B co-locate in the same building yet they do not peer with each other in a non-transit capacity...Along comes US ISP C that both A and B connect to, now if a user from ISP A wants to download data(torrent) from a user on ISP B he has to transit an expensive US carrier.
Now cut to the future, imagine communities being able to communicate via streaming channels on the net without requiring ANY rogers or bell IP TV services. I can be Bob the cabinet maker and have a daily show streamed from my house to a local, regional, national and international community for $40/mo. I can be Jane the concert pianist and I can internet stream one of my performances. I can be the "Next Great Band" and allow people to stream our music or download it without UMG, WMG or BMG ever seeing a dime. There are a thousand different uses for Fiber to the Home level bandwidth and none of them make money for Rogers and Bell....Hence the situation we are in.
- Don't base your capacity planning on the lowest common denominator
- Don't over-subscribe links so much
- Make every Canadian ISP peer with every other Canadian ISP so that if the content exists in Canada there is no need to pay US carrier costs.
- Enable a national multicast backbone and MAKE Rogers and Bell be a part of it.
- Invest in more local content caching
- pay Bram Cohen to add an Autonomous System affinity into bittorrent to have peers local to Canada higher on the desirable seed list. Cost about 500 bucks.
- stop fighting change