CRTC Reaffirms VoIP Decision and Plans to Reassess Regulations

In a recent decision (Telecom Decision CRTC 2006-53), the Canadian Radio-Television and Telecommunications Commission (CRTC) has confirmed that Canada's major telephone companies will continue to face pricing and competition controls on their Voice over Internet Protocol (VoIP) services. Regulation of VoIP services for large existing telephone carriers was initially established by the CRTC in May, 2005 [Telecom Decision CRTC 2005-28, 12 May 2005, as amended by Telecom Decision CRTC 2005-28-1, 30 June 2005 (For a summary of the earlier decision see E-TIPS®, "CRTC Regulates VoIP Services for Large Existing Local Carriers" Vol 3, No 24, May 25, 2005)]. Industry Minister Maxime Bernier had questioned the earlier CRTC decision and sent it back to the CRTC, asserting that it was in the public interest to reconsider the issue. Although the CRTC has now reaffirmed the earlier regulatory scheme, it has decided that it will reassess the regulatory ground rules it previously established, because it has found that competition is taking hold more firmly than anticipated. One major component of the regulation to be re-evaluated is the market share forbearance criterion, which currently allows major companies to escape VoIP service regulation only if they can demonstrate that they have lost 25 per cent of market share. The latest decision creates more uncertainty for the industry, since the large telecom companies now have no clear rules for deregulation, while the smaller players are uncertain as to the extent of protection afforded them by the regulator. For the full CRTC Decision and Press Release, see: http://www.crtc.gc.ca/archive/ENG/Decisions/2006/dt2006-53.htm; and http://www.crtc.gc.ca/ENG/NEWS/RELEASES/2006/r060901.htm For a commentary on the decision in The Globe and Mail, visit: http://makeashorterlink.com/?Y14A43FBD For commentary on the decision by the CBC, see: http://www.cbc.ca/cp/business/060901/b090160.html Summary by: Michael Migus