TELECOM Digest OnLine - Sorted: CRTC Reins in Major Carriers on VoIP

CRTC Reins in Major Carriers on VoIP

Jack Decker (jack-yahoogroups@withheld_on_request)
Fri, 13 May 2005 11:22:12 -0400

Thursday, May 12, 2005 Updated at 10:10 PM EDT

From Friday's Globe and Mail

Canada's telecommunications regulator ruled Thursday that the
country's dominant phone companies will not be able to set their own
prices for on-line telephone services, part of its effort to create
more competition and lower prices in the budding market.

The Canadian Radio-television and Telecommunications Commission
rejected the arguments of the country's largest telephone companies
Bell Canada and Telus Corp., who had argued that voice over
Internet protocol (VoIP) should be left unregulated like other
Internet applications.

Instead, the commission decided that it would regulate the large phone
companies' prices in the VoIP market, preventing them from cutting
rates to keep out rivals at least until there is legitimate
competition in local phone services. The large phone companies'
challengers, however, such as upstarts and cable companies, will not
have their VoIP prices regulated, as The Globe and Mail reported last

CRTC chairman Charles Dalfen said the market could reach an acceptable
level of competition within the next two years. "This is precisely
the moment when Canada needs a regulatory framework that will provide
the quickest road to competition," Mr. Dalfen said.

Bell and Telus reacted harshly to the ruling, and they plan to appeal
the decision to the federal cabinet and may launch legal challenges.

Full story at:

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