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Several of Canada’s biggest Internet service providers are defending their decision to “throttle” subscribers who use file-sharing protocols as a week-long regulatory hearing on the controversial issue nears completion.

Rogers Communications Inc. told a Canadian Radio-television Telecommunications Commission panel today that such traffic management practices are necessary to keep a small number of heavy-bandwidth users - particularly those using peer-to-peer protocols such as BitTorrent to swap large music and video files - from overwhelming their networks.

Failing to do so, it argued, would result in congestion and degraded service levels for all subscribers.

“This is not a network neutrality issue,” said Ken Engelhart, Rogers’ senior vice-president of regulatory affairs, referring to charges that the cable giant is improperly interfering with its subscribers’ ability to access content on the Web.

“The whole premise behind this (network neutrality) stuff is that we’re doing this to favour our video business,” he said. “But if that’s true, why … wouldn’t we be managing video streaming too?”

Bell Canada Inc. is expected to make a similar argument when the hearing resumes tomorrow for its final day.

Several ISPs have argued that the increasing popularity of online video, including user-generated content on YouTube, has resulted in an explosion of Internet traffic in recent years.

While they claim network investments are being made to accommodate the extra weight, they have also singled out peer-to-peer file sharing as an application that requires active management because of the way it uses available bandwidth.

“Traffic management is critical to providing Internet service that is fast, reliable and affordable,” said Ken Stein, the senior vice-president of corporate and regulatory affairs for Shaw Communications Inc cheap cash advance.

But Web-based companies such as Google argue that targeting certain types of Internet applications and not others will limit the development of potentially beneficial products and services on the Web.

Consumer groups, meanwhile, have expressed concern that the technology used by ISPs to sniff out peer-to-peer traffic could be used to monitor subscribers’ individual surfing habits and develop pricing models that favour some types of Web surfing over others.

They have also argued that ISPs need to be more transparent about their use of traffic management tools, noting that the advertised speeds for many Internet packages don’t account for network congestion or traffic management techniques.

Engelhart told the CRTC that, if compelled, Rogers could disclose to subscribers the speeds that can be expected when uploaded traffic is throttled, although he said the company would prefer to keep such information confidential for competitive reasons.

The “throttling” issue landed on the CRTC’s plate last year after a group of wholesale Internet providers complained that Bell was applying its traffic management policies to their customers. While the CRTC ultimately ruled in Bell’s favour, it committed to holding a hearing on the larger issue of traffic management this year.

The various stakeholders in the debate have until July 24 to make their final submissions with the CRTC. Any decision could take up to 10 months, a CRTC spokesperson said.

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From David Nicklaus’ Mound City Money blog, covering the St. Louis business community. STLtoday.com/moundcitymoney

As The New York Times reported Thursday morning, many of the nation’s biggest cities are not getting their fair share of highway spending from the federal stimulus bill. Overall, according to a study that IHS Global Insight did for the U.S. Conference of Mayors, the top 85 metro areas account for 63 percent of the nation’s population and 73 percent of gross domestic product, but so far they’re only getting 48 percent of the transportation funds.

Despite Mayor Francis Slay’s complaints, however, St. Louis doesn’t appear to be one of the places getting the short end of the stick. The Times graphic shows that the St. Louis area produces 0.90 percent of the nation’s GDP and is getting 0.91 percent of the highway money. The IHS Global Insight study breaks down spending by state, and it shows that metro St. Louis got 58 percent of Missouri’s allocation. The metro area produces 45 percent of Missouri’s gross state product. (07/09)

The scrolling sign at McArthur’s Bakery in St. Louis County usually advertises something sweet, but one recent message was downright bitter.

According to Fox News, the sign read: "Russ Carnahan voted to … close us and other … small business."

The reference is to Rep payday loans. Carnahan’s vote in favor of the Waxman-Markey cap-and-trade bill, which bakery vice president David McArthur clearly doesn’t like.

McArthur told FOXNews.com that every aspect of his business relies on the forms of energy targeted by the American Clean Energy and Security Act, and that his congressman, Carnahan, was supporting "a direct tax increase on small business" by voting for it. (07/08)

Illinois isn’t the hardest-hit state in this recession — Michigan has lost far more jobs, and housing problems are worse in states like California and Arizona. The Land of Lincoln does, however, lead the league with 12 bank closings so far this year. That’s more than 20 percent of the nation’s 52 failures. (07/07)

St. Louis lacks resilience in the way it has responded to mounting mortgage foreclosures, a new academic study says.

The study, published by the MacArthur Foundation, says that while local nonprofit groups have ramped up their efforts, "The weakness is that the resources have been lacking to scale up counseling to the needed level and area governments have contributed little to prevention." (07/06)

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DETROIT — General Motors Corp. completed an unusually quick exit from bankruptcy protection on Friday with ambitions of making money and building cars people are eager to buy.

At a news conference, CEO Fritz Henderson said the revamped automaker will be faster and more responsive to customers than the old one. It will generate cash and repay billions in government loans ahead of a 2015 deadline.

The new company will build more cars and trucks that consumers want and launch them faster than in the past, Henderson said. GM also announced plans to experiment with auctioning new cars on eBay, expanding on an existing partnership covering certified used vehicles.

"We recognize that we’ve been given a rare second chance at GM, and we are very grateful for that. And we appreciate the fact that we now have the tools to get the job done," he said.

The new company will focus on customers, cars and culture.

"If we don’t get this right, nothing else is going to work," Henderson said at GM’s Downtown Detroit headquarters. "Business as usual is over at General Motors."

GM, in a viability plan presented to the government, said it would break even before interest and taxes next year, and be slightly above break-even for 2011 on a pretax basis.

"Sitting here today, I don’t have any reason to disbelieve those numbers," Henderson said, giving no details of when the company would make a net profit business cards online.

Henderson said the U.S. government, which owns a majority stake in GM, has vowed that it would not get involved in day-to-day decisions. GM received $19 billion to $20 billion more in federal aid on Friday, the remainder of the $50 billion in aid it will receive, he said. A large part of the money will be held in escrow.

The Treasury Department released a statement Friday crediting GM’s restructuring with saving both the automaker and "tens of thousands" of jobs.

GM makes the GMC Savana and Chevrolet Express full-size vans at its Wentzville facility. A week after GM filed for bankruptcy, it told the local work force that it would cut one of two production shifts on Aug. 10.

One shift of workers will return to work on Monday, after a nearly five-week extended shutdown. A week later, on Aug. 3, workers on both production shifts will come back to transition the plant, said Bob Wheeler, the plant communications manager. By Aug. 10, about 890 hourly workers will be laid off.

A side effect of GM’s reorganization is that about 1,100 dealerships are expected to lose their franchises.

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CALGARY–Burnet Duckworth & Palmer’s renowned soiree has been a regular fixture on the Calgary Stampede party circuit for more than 15 years, but the law firm isn’t playing host to the cowboy hat and bolo tie set this year.

The annual bash has fallen, like the economy, on tough times, cancelled in the face of the greatest recession since World War II.

Notably, the partnership isn’t the only group that has decided to call off or scale back parties linked to the city’s famed celebration of cowboy culture.

"As the end of ‘08 crept up on us … our long-term partner in the food bank started experiencing an unbelievable increase in food requests, people who aren’t able to make ends meet and who weren’t able to put food on the table," said Brian Feick, director of marketing for the law firm.

"Our partners got together and said, `Hey, maybe the right thing to do, instead of hosting a party for $150,000, we give that money to the food bank’."

Clients who would have attended BD&P’s party – described by Feick as a night of "high-end food and booze" with around 2,000 guests – fully supported the firm’s decision.

"In fact, they sent cheques back in to us in support of the (food bank) program," he said.

For 10 surreal days every July – this year from July 3 to 12 – bales of hay appear throughout Calgary’s otherwise sleek downtown core. Even the most polished corporate executives trade in their suits and ties for plaid shirts and jeans.

The huge private parties thrown by law firms, investment banks and other companies are as much a part of Stampede week as chuckwagon races and bull-riding.

Given the scale of the recession, and huge job losses throughout Alberta’s all-important energy industry, some firms are toning down or cancelling events, but others are full-steam ahead car loan interest rates.

David Howard, president of The Event Group, said the number of corporate Stampede parties his company is planning this year has been "cut drastically" from last year, when oil prices above $140 (U.S.) were fuelling dizzying economic activity in the province.

Now, with oil prices cut by more than half and industry fortunes looking bleaker, Howard said he is advising his clients to take a more subdued approach. "Investors have got their money, their savings tied up in a firm, and this firm’s losing and all of a sudden they’re going to spend thousands on a Stampede party? The optics of it just aren’t great."

Howard has shifted his business away from elaborate Stampede parties toward smaller-scale concerts and speaker events.

"Where you’ve seen three bands at an event before, there’s one. If you’ve had a full steak dinner, well, maybe it’s a burger event and cash bar."

Investment dealer Peters & Co. did deliver live music for 1,000 people at its Firewater Friday, another Stampede-week institution, that raises "a decent chunk of dough" for the Calgary Hospice Association, CEO Ian Bruce said. "We’ve always had this party rain or shine, good times and bad."

Law firm Blake, Cassels & Graydon also threw its Stampede Roundup shindig, for 10,000 revellers. The event has raised more than $200,000 for charity each year for the past 14 years, said partner Dalton McGrath.

"While … mindful of the costs of the event, we could not withdraw our sponsorship without hurting our charities, which need our support more than ever in these times."

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BERLIN–Bombardier's transportation division has won a US$54 million contract to supply trams for the British city of Blackpool, the Montreal-based company announced Wednesday.

The contract to supply 16 trams is the first for the Flexity 2 model, which Bombardier says will revitalize Britain's tram system while reducing energy consumption.

The vehicles manufactured in Germany and Austria are scheduled to be delivered between May 2011 and March 2012.

Bombardier's contribution is part of a contract valued at US$176 million.

Blackpool, England, becomes the fourth British city after London, Nottingham and Manchester to select Bombardier light rail products.

More than 450 Flexity low-floor vehicles have been ordered and are in service in the cities such as Innsbruck, Geneva, Brussels, Marseille and Spain's Valencia and Alicante instant payday loans completely online.

Toronto recently placed the world's largest light rail order for 204 Flexity Outlook trams worth C$1.2 billion, including taxes, spares, maintenance and other costs.

Belin-based Bombardier Transportation is the world's largest rail company. It has more than 100,000 vehicles in operation in more than 60 countries.

Parent company Bombardier Inc. had US$19.7 billion of revenue in the fiscal year ended Jan. 31.

On the Toronto Stock Exchange, its shares were down three cents at C$3.31 in morning trading.

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A major video-game company that made $111.5 million in global profits last year on popular titles such as Assassin’s Creed is getting a $263 million grant from the Ontario government to open a new studio in Toronto and create 800 jobs over a 10-year period.

The deal was announced yesterday after a three-year courtship of Ubisoft, which is based in France and employs 2,200 in Montreal.

Other games in its stable include Prince of Persia, Far Cry and the Tom Clancy titles Splinter Cell and Rainbow Six.

But Ontario taxpayers won’t get a share of the company’s profits from games developed at the new Toronto studio to open later this year, Premier Dalton McGuinty said.

"Do we get a piece of the action? No, no," the Premier said. "What we’re talking about here is an investment in jobs and in strengthening the industry as a whole.

"To begin to demand an equity stake in private-sector enterprises is a step too far," added McGuinty, who said that the equity stakes Ontario has taken in General Motors and Chrysler as a result of hefty government bailouts were something that "just kind of happened" in negotiations to save the troubled automakers.

Ubisoft will invest another $500 million in its Toronto operation, where it will draw on resources in the local film industry for production of video games.

It’s a fast-growing field that has already outpaced the movie box office tallies in the United States, for example, according to NPD Group, as the biggest players are in the 40-plus age group with healthy disposable incomes cash loans.

As traditional manufacturing industries such as automobiles decline, Ontario has been targeting the fast-growing world of digital media, which includes computer graphic imaging for the genre of animated movies.

Ubisoft becomes the province’s first major video-game company.

McGuinty called digital media "a new kind of manufacturing" that is worthy of support to build a more diversified, knowledge-based economy.

"This is an anchor investment … it will catapult us a great distance forward," the Premier said.

He noted the investment will help keep graduates of local community college computer animation and similar programs from leaving the area, which is already the third-largest digital media hub in North America.

"Rather than the brain drain … the opening of Ubisoft Toronto is all about a brain gain," said Yannis Mallet, chief executive of the company’s Montreal and Toronto operations.

Ubisoft has operations in 28 countries, including 20 studios, and sells its products in 55 nations.

"It’s a competitive world out there." McGuinty said.

"We were determined to land a video-game publisher-developer of Ubisoft’s stature."

The company, which also has small studios in Quebec City and Vancouver, will have to open its books to the province on a quarterly basis to make sure it is creating the jobs promised before receiving the $263 million in chunks over the 10-year period.

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OTTAWA–The Canadian economy in April showed signs of emerging from the worst two quarters in decades, but the light at the end of the tunnel remains faint and distant.

Statistics released yesterday found the country’s gross domestic product retreated for the ninth consecutive month in April, slipping 0.1 per cent.

That was better than the 0.3 per cent contraction in March and spot-on the economists’ consensus for the month.

If there was a surprise, said Douglas Porter of BMO Capital Markets, it was that manufacturing was even weaker than thought, despite the relatively good month for the auto sector.

"There’s definitely still serious risks out there for the recovery," he said. "So until we definitively turn the corner, I’m going to stay cautious."

One of the trouble spots surfaced in the United States, with a new survey showing the American consumer remains in the dumps payday loans. The New York-based Conference Board said yesterday its consumer confidence index fell five points in June, when analysts had been expecting a slight increase.

Economists are now projecting the second quarter of this year, which ended last night, will show the economy contracted between 2 and 3 per cent on an annualized basis, better than the 5.4 per cent fallback in the first quarter, but still a long way from growth.

CIBC’s Krishen Rangasamy said the GDP numbers can indeed be a signal that the worst of the recession is behind us, but he too cautioned that Canadians shouldn’t start breathing easier just yet.

"At this point, we’re still aiming for a recovery in the final quarter of the year, helped mostly by a pickup in demand overseas," he said.

The Canadian Press

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