Telecommunication and Internet service provider Primus Canada last week notified customers that, effective February 1st, 2011, the company will be increasing how much it charges for internet service and lowering bandwidth caps.

In an email, the company informed customers, who previously had an unlimited bandwidth cap, would now have only 25GB of monthly usage.

Beyond 25GB of monthly usage, Primus will charge internet users for additional usage up to 300GB at $2.00/GB to a maximum of $60.00/month. Usage in excess of 300GB per month will be charged an additional $1.10/GB. To reduce the potential for an extra monthly charge of $60, additional usage plans will be offered starting at $5/month for an additional 40GB.

The price increase is a result of a recent decision by the Canadian Radio-television and Telecommunications Commission (CRTC) to approve Bell Canada’s request to introduce Usage Based Billing on wholesale Internet services.

Primus says the CRTC decision makes offering unlimited internet bandwidth financially impossible for them hence why they are bumping up prices.
To add insult to injury, Primus also notified Triple Value Plan customers whose rate was below their current in-market pricing of $74.95 per month the current offering will see their rates go up $5 per month. Primus says the rate hike is to cover rising ongoing support costs.

Thanks to the Federal Government regulators decision, other third party DSL Internet providers are expected to increase their rates in coming days.

Discuss the Primus rate increase in our General Internet and Landline discussion forum .