OTTAWA – The CRTC’s VOIP decision prevents monopolies like SaskTel from driving newcomers out of the telephony business and the federal cabinet should deny all appeals, says Canadian Cable Telecommunications Association.
"Telephone companies, such as SaskTel, are free to lower prices for VoIP services under the CRTC ruling, but this decision prevents them from driving out emerging competitors, including local cable companies in Saskatchewan, by using the telephone monopoly position to price below cost," said Michael Hennessy, CCTA president.
Hennessy was responding to the Saskatchewan government’s appeal to cabinet today to overturn the CRTC’s VOIP decision (provincial telco SaskTel is an arm of the provincial government).
SaskTel retains effectively 100% of the local (wireline) telephone market, says the CCTA. Since the largest competitive VoIP providers do not offer service in Saskatchewan, CCTA is disappointed by the Government of Saskatchewan’s challenge to a decision that seeks to introduce competition and choice to taxpayers there.
"It is more than fair that the CRTC has restricted anti-competitive behaviour, as long as the telephone companies control over 95% of the local telephone market across Canada," added Hennessy. "Local telephone service is still a monopoly in Canada."
CCTA questions the need for a Cabinet appeal, since the telephone companies are free to launch VoIP services and the CRTC has already granted approval for a discounted service in the case of Bell Canada.
"The VoIP decision is in the public interest. It encourages competition and will provide consumers with a choice of service providers and lower prices. Consumer interests are not served by preserving monopolies," said Hennessy. "Now is not the time to use politics to sacrifice the independence of the CRTC, simply to perpetuate powerful monopolies."
