Last night, Industry Trade Minister Tony Clement announced via Twitter that the Federal Cabinet would overturn the CRTC's recent decision over Usage based billing plans.

In subsequent communications with the press today, Mr. Clement said the CRTC must reverse its decision or else the federal government would intervene.

While the decision to overturn the most recent CRTC decision is being hailed by many consumers and bloggers as a big win, it’s unclear from Mr. Clement’s comments exactly what the government is going to overturn.

Bloggers and consumers seem to have taken Mr. Clement’s tweets to mean that the feds will overturn the practice of usage based billing altogether. The problem with that belief is the most recent CRTC decision, which Mr. Clement seems to be referring to, only dealt with the imposition of Usage Based billing on Third Party Internet Access (TPIA) providers.

So the question becomes, is the government simply going to ban the imposition of Usage Based billing on Third Party Internet Access providers or will the government ban the imposition of Usage Based Billing by all Internet service providers or both.

If the government simply overrules the imposition of UBB on TPIA providers then it will mean that the big cable and telecommunications company will still be able to implement bandwidth caps and Usage Based Billing on their own retail customers which will likely disappoint the vast majority of the 350,000 online petitioners who thought they were signing up to ban UBB altogether.

Discuss Usage Based Billing in Digital Home’s Canadian Internet forum.