OTTAWA – With re-comments re-due today on the CRTC’s reconsideration of its 2005 decision on voice over IP telephony regulation, three of the four largest Canadian MSOs came down on the side of the Commission in a joint submission filed this afternoon.
Last month, the Federal Cabinet told the CRTC it had to re-think the decision it made on VOIP telephony and have a decision – again – within 120 days of the May 7th announcement. The cabinet edict was in response to appeals filed by all but one of Canada’s incumbent telephone companies.
Cogeco Cable, Quebecor Media’s Videotron and Rogers Communications today confirmed their support of the CRTC’s decision, reported by cartt.ca in May 2005.
"(T)he CRTC decision was correct in May 2005 and remains appropriate today," says a joint release from the three companies. "The original decision took a consistent and pro-competitive approach to the regulation of telephone services, regardless of the underlying technology."
The decision mainly means that incumbent telcos like Bell and Telus have to file for tariff approval on any local telephone rate changes – a process that is taking seven to 10 days. Plus, they are subject to win-back restrictions which now say they can not contact customers who leave them for 90 days. The previous restriction had been 12 months, but the CRTC shortened it in its recent local forbearance decision, which the ILECs have also appealed.
The CRTC said this is an appropriate way to let competition from newcomers to voice like cable operators, as well as other providers, like Primus and Vonage.
"The original decision to treat VOIP as a telephone service and not simply as a new technology, continues to make sense today as it did last year," adds the statement. "The submission notes the fact that all industry participants agree that VOIP and traditional local exchange services offer the same end product in the minds of consumers.
"The CRTC’s statutory obligations require economic regulation of VoIP given the significant market power of the incumbent telephone companies in the local telephone service market. Today, the incumbent telephone companies still control over 92% of the local residential telephone market. The incumbent telephone companies are able to offer VOIP services, but not at prices that are below cost and targeted only to competitors’ hard-won recent customers," the release adds.
"The submission explains that the CRTC has already granted substantial flexibility for incumbent telephone company VoIP services given their advantaged market position. By guarding against anti-competitive behaviour at this time, the VOIP decision has stimulated more investment and innovation in the local telephone market to the benefit of all Canadians.
"This decision and the recent local forbearance decision reflect the CRTC’s intent to reduce barriers to competition in local telephone service first and then once competition has become established, deregulate completely according to clear transparent criteria. This approach has already led to the successful deregulation of over 70% of Canadian telecommunications markets, placing Canada in a leadership position in the world," concludes the statement, which was released at around 6 p.m. Monday.
