TELECOM Digest OnLine - Sorted: Canada Regulates ILEC VOIP Pricing

Canada Regulates ILEC VOIP Pricing

Jack Decker (jack-yahoogroups@withheld_on_request)
Mon, 16 May 2005 12:24:34 -0400

Canada Regulates ILEC VOIP Pricing

The Canadian telecommunications regulatory agency ruled last Thursday
that the country's ILECs must get regulatory approval on pricing
for VOIP products. But the VOIP offerings of the country's
startups, CLECs, and cable companies are immune (see Rogers Picks
Sigma for VOIP and MetaSwitch Lands Canadian Deals).

The Canadian Radio-television and Telecommunications Commission (CRTC)
ruled that VOIP is more like a telephone service than a data service
and must be regulated as such.

The ruling comes as Canada's VOIP market is getting its legs, and
it may have serious impact on which industry and which companies take
an early lead in the competition for users (see Nortel Comments on

In its ruling the commission sought to prevent Canada's ILECs from
forcing smaller players out of the market by selling VOIP service at
bargain basement prices (see VOIP for Life?). The ILECs hold a strong
position in the Canadian marketplace, controlling 97 percent of the
country's wireline telephone business.

The commission also rejected forbearance requests from BCE Inc. (Bell
Canada) and Telus Corp. The two said they will immediately appeal the
CRTC's decision.

Full story at:

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