Canadian Government Overrules CRTC on VoIP Regulation

In what seems much like an extended tennis match between the Canadian Radio-Television and Telecommunications Commission (CRTC) and its political masters, the new Conservative government has ended play by overruling the CRTC and freeing Voice Over Internet Protocol (VoIP) services from the regulatory scheme previously proposed. As noted in E-TIPS® ("CRTC Regulates VoIP Services for Large Existing local Carriers", Vol 3 No 24, May 25, 2005), the CRTC had originally ruled that VoIP services provided by the large incumbent suppliers of local services such as Bell and Telus which, together, controlled 97% of the market, would remain regulated, whereas services from new entrants and communications between computers on the Internet would not be regulated. When the new Conservative government took power, it asked the CRTC to reconsider its VoIP ruling (especially in light of the recommendations of the Telecommunications Policy Review Panel (TPRP) – see E-TIPS® ("Fundamental Changes Looming in Canadian Telecom Policy", Vol 4, No 19, March 29, 2006); however, after reconsideration, the CRTC confirmed its initial decision. The policy announcement was not entirely unexpected, given the new Government's stated intention to strike a somewhat different balance between market forces and regulation. As noted in the press release accompanying the Industry Minister Bernier's announcement: "The government's variance of the CRTC's decision is another step towards deregulation and is consistent with the proposed policy direction we introduced this year". For the Canadian government's press release (November 15, 2006), see: http://makeashorterlink.com/?G35E42C3E The full text of the government's variance of the CRTC decision is to be published in the Canada Gazette on November 29, 2006 and will be found at: http://canadagazette.gc.ca/index-e.html Summary by: The Editor