Limits were reduced days after Netflix said it would enter streaming market in Canada

Many consumers in the U.S. have access to broadband service from either cable or phone providers that offer unlimited data consumption each month. Some providers do limit bandwidth that a user can consume in a given month without overage charges in a fashion similar to that of wireless providers.

Unlimited bandwidth is a great thing for consumers who like to stream content online from services like Netflix and others. Streaming video does consume lots of bandwidth and some providers are looking to make money on streaming content as it gains popularity from overage fees. One such provider is Rogers in Canada.

CBC News reports that Rogers, the second largest ISP in Canada, announced this week that it is lowering its allowed download limits. Customers who sign up for Rogers Extreme service after July 21 will get 80GB of monthly bandwidth rather than the 90GB that people who signed up before that date are allowed. 

Buyers who opt for the Lite service will get 15GB of bandwidth per month rather than the 25GB offered before. Rogers is offsetting the reduction in monthly allowance for Extreme service customers by upping speeds to 15Mbps from 10Mbps before. The Lite service maintains its existing speed. Users who go over their data allotment for the month are charged an extra $50.

The announcement of reduced data allowances comes only a few days after Netflix announced that it would be entering into the Canadian market with its streaming service. 

John Lawford, a lawyer with a consumer watchdog group said, "It's easier to make money from [data] overage charges because those aren't really advertised rates. You're going to make more money from those overages, eventually, than your regular monthly rates. It also kind of wrecks [Netflix's] business model if the cost to the end user goes up after they've subscribed and then they cancel it a month later because they can't afford it."

The move is also seen as a way for Rogers to put a damper on Netflix's viability in the Canadian market. Rogers offers a streaming service similar to Netflix's streaming service in Canada already and the two will be competitors in the market.

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