OTTAWA — The Harper government will overrule a recent decision by the Canadian Radio-television and Telecommunications Commission that effectively kills unlimited Internet-pricing packages — unless the telecommunications regulator backs down first, Postmedia News has learned.

"The CRTC should be under no illusion. The prime minister and the minister of industry will reverse this decision unless the CRTC does it itself," a senior government source, speaking only on condition of anonymity, said Wednesday evening.

Industry Minister Tony Clement confirmed that the government will overrule the CRTC late Wednesday night on his Twitter account, saying that the CRTC must "go back to the drawing board."

The ultimatum sets the stage for an awkward appearance before a parliamentary committee Thursday by Konrad von Finckenstein, chairman of the CRTC, who will now be making his public remarks with a threat hanging over his head.

Last week, the CRTC ruled that usage-based billing, the model used by large Internet providers such as Bell Canada and Rogers Communications to charge customers extra for exceeding monthly download limits, will apply to smaller providers too. Until now, those smaller providers could offer unlimited Internet packages; the ruling means they no longer can.

Clement had previously hinted that the federal government may quash the controversial ruling, and the prime minister has asked for a review of it. But the government's blunt ultimatum to the CRTC suggests any review would be pro forma.

It's also another slap to the face for von Finckenstein's agency delivered by the Tory government. In 2009, the government decided to let Globalive Wireless Management Corp. set up cellphone service in Canada even the CRTC blocked the bid because of foreign-ownership rules.

Von Finckenstein and CRTC vice-chair Len Katz were slated to appear before the House of Commons industry committee Thursday to answer questions about the CRTC ruling.

Large companies that employ usage-based billing say customers who stream movies or games on the Internet use too much extra bandwidth and the billing model helps the companies "manage" this use.

Opponents of usage-based billing say preventing companies from offering unlimited access stifles competition and innovation.