Cable / Telecom News

Cabinet tells CRTC to re-think VOIP decision


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 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 at 4 p.m.
The CRTC has been given 120 days to re-visit the 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."

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 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.

In March 2006, the Telecommunications Policy Review Panel released its final report and recommendations. 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.

"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."

More to come on this later.