OTTAWA – The Coalition for Competitive Telecommunications said today it too believes the CRTC’s VOIP decision wrong-headed.
"The Coalition argued that users ultimately pay for the entire telecommunications cost structure and we should have more say in the regime governing our freedom of choice in technology and service providers,” said Ian Russell, coalition chair (and senior vice president, Investment Dealers Association of Canada). “Regrettably, this is a decision about picking winners rather than leaving customers and markets generally to determine outcomes. The CRTC has once again ignored the users.
“It appears the CRTC is far more interested in settling the rules of engagement between incumbent and competitive telecom service providers and cable companies than addressing the needs of users. We must ask ourselves who is the CRTC protecting and why is the CRTC ignoring our interests?” said Russell.
The CCT commissioned a survey of business leaders in the fall of 2004 by Phoenix Strategic Perspectives that concluded the majority of companies surveyed did not support or want CRTC regulation of VOIP. "While the CRTC apparently believes that users will benefit from their new VOIP rules, one must ask who knows better what users want: the CRTC or the users themselves?” asked Russell.
(Ed note: In fact, the rules are not really new ones. The CRTC is merely placing VOIP under the old rules, regulating the rates of an ILEC’s voice service until further notice.)
"If the CRTC applied its VoIP analysis to cellular and PCS services at their inception, Canadian users of wireless services would not enjoy today the benefits of one of the most competitive services in Canada. Regulation was not necessary then to protect the business users; why is it necessary today?” asked Russell.
“There is a very real concern this regulatory decision will seriously hinder new capital investment and innovation in the Canadian telecom sector, which has been a strong contributor to Canada’s competitiveness and economic growth over the years,” he added.
“The Coalition will redouble its efforts to ensure the business community’s interests are heard by the regulator and by the government. We will continue to advocate open competition as the only way to ensure telecom services are provided at the earliest opportunity and at the lowest cost within a light-handed regulatory framework. This approach underpinned the federal government’s ‘hand’s off’ Internet policy some years ago. The Coalition is very disappointed the CRTC has failed to reaffirm its policy of Internet non-regulation when it comes to voice over the Internet.”
The CCT was established in late 2003 to ensure the voice of business was heard by the regulator. Its members include:
* Association of Canadian Acquirers
* Association of Canadian Travel Agencies
* Canadian Manufacturers & Exporters
* Canadian Newspaper Association
* Insurance Bureau of Canada
* Investment Dealers Association of Canada
* Investment Funds Institute of Canada
* Megatrade Communications Services Corporation
* Société GRICS (Société de gestion du réseau informatique des commissions scolaires)
* The Canadian Depository for Securities Limited
