OTTAWA – The new Federal Cabinet wants the CRTC to revisit last year’s voice over Internet protocol decision.
As reported on numerous occasions by www.cartt.ca, the CRTC decided last year to maintain its position that voice, even delivered via IP, is still telephone service. What that meant was that incumbent telcos still faced some regulatory shackles (like having to file for tariffs) while newcomers, such as cable operators or VOIP providers like Vonage would have a freer hand.
Canada’s ILECs – most of them anyway – appealed the decision.
In governmentspeak: "The Governor in Council (GIC) has referred the Canadian Radio-television and Telecommunications Commission’s (CRTC’s) Telecom Decision CRTC 2005-28, Regulatory Framework for Voice Communication Services Using Internet Protocol — the VoIP (Voice over Internet Protocol) decision — back to the Commission for reconsideration," says the release put out this afternoon after 4 p.m.
The CRTC has been given 120 days to re-visit the decision.
We think it is reasonable for the new government to refer the matter back to the CRTC so that they can be sure that the decision is consistent with their policies," said Rogers Communications vice-president regulatory Ken Englehart. "However, we believe that the CRTC’s regulatory regime works well to introduce competition to telecommunications markets. We think the VOIP decision was correct and look forward to participating in the CRTC’s review of its decision."
"After careful study of the CRTC decision, and the subsequent appeals, the government believes it is in the public interest for the CRTC to reconsider its decision," said Industry Minister Maxime Bernier. "This will give the CRTC the opportunity to take into account the increase in demand for VOIP services and changes to the overall regulatory environment since the original decision was announced last year.
"In addition to considering the progress that VOIP has made in the market, the CRTC will be able to reconsider the decision in light of the detailed work recently completed by the Telecommunications Policy Review Panel," said Minister Bernier.
The federal cabinet is to be congratulated for directing the CRTC to reconsider its VOIP decision. This is welcome recognition of the extent of change in the telecom sector and of the need for a regulatory environment that reflects that change. It is precisely this view that is at the heart of the TPR Panel’s report," said BCE CEO Michael Sabia, in a statement.
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Following the release of the CRTC’s decision in May 2005, the GIC received a joint appeal from Aliant Telecom Inc.; Bell Canada; Saskatchewan Telecommunications (SaskTel); Télébec, société en commandite; and Telus Communications Inc.
Separate appeals were filed by the Province of Saskatchewan; the Coalition for Competitive Telecommunications; The Vancouver Board of Trade; and the Communications, Energy and Paperworkers Union of Canada. The appeals called on the GIC to vary the CRTC’s decision.
Under the Telecommunications Act, the GIC has the authority to vary or rescind any telecommunications decision of the CRTC, or refer it back for reconsideration.
In March 2006, the Telecommunications Policy Review Panel released its final report and recommendations, as reported by cartt.ca. The panel made numerous recommendations in favour of reducing regulation in the telecommunications sector, and of relying to the greatest possible extent on market forces to achieve policy objectives. The government is currently studying the panel’s recommendations, which the ILECs certainly favor while telecom newcomers have reservations.
"In order to encourage innovation and productivity, it is imperative that regulatory measures interfere as little as possible with competitive market forces," said Minister Bernier. "I look forward to reviewing the CRTC’s conclusions after it reconsiders this important decision."
As for the VOIPsters, Babytel was quick in its response, applauding the move to revisit the decision, but not for the same reasons as Bell and the other ILECs. Babytel objects to the telecom and cable "duopoly" being created in the telephony marketplace.
"Voice over Internet Protocol (VoIP) offers so many benefits, but I feared all along this wrong-headed ruling to regulate incumbents such as Bell Canada and Telus while ignoring cable companies would stifle competition and innovation," said Stephen Dorsey, Babytel president and CEO.
"When it comes to VoIP, cable has shown it will be predatory in many ways," Mr. Dorsey said. "Perhaps the most high-profile example is Shaw Cable charging its own high-speed customers who choose a competitive VOIP provider an extra $10 a month. Shaw calls the premium a ‘quality of service enhancement.’ We call it anti-competitive behavior."
Dorsey said he wants both telephone and cable companies regulated until smaller competitors can establish a beachhead in the marketplace.
"But having said that, I’d rather have no regulation than what the CRTC proposes. I am delighted that the government sees this current ruling as flawed. Such a ruling as it stands would simply create a duopoly by transferring telco customers to the cable companies while stifling real competition."
