CRTC announces three-year phase-out of local service subsidy regime; seeks feedback on price cap, local forbearance regimes

OTTAWA – The CRTC has laid out its plan to phase out the local service subsidy over three years as it continues to shift the focus of its regulatory frameworks from wireline voice services to broadband Internet access services.The local voice service subsidy was designed to keep wireline voice service affordable in high cost serving areas (HCSAs). Telecommunications service providers with $10 million or more in annual Canadian telecommunications revenues are required to contribute to a national fund that is distributed to incumbent local exchange carriers (ILECs) serving regulated HCSAs, usually rural and remote locations.The Commission said Tuesday that phase-out...