OTTAWA – The VOIP decision will stand, with a "but".
Today the CRTC re-affirmed its May 2005 decision on voice over Internet protocol. Federal cabinet told the Commission in May of this year to reconsider that decision after all but one of Canada’s ILEC’s filed an appeal.
However, the Commission did signal it’s prepared to alter course when it deems necessary. Specifically, it "declared that competition in local telephone service is taking hold more firmly than anticipated," said this morning’s press release. "As a result, the CRTC is taking steps to reassess certain aspects of its local forbearance framework. These rulings foster an increased reliance on market forces, and ensure that Canadian consumers continue to receive the benefits of competition, including greater choice and lower prices.
"In today’s Telecom Decision CRTC 2006-53, Reconsideration of Regulatory framework for voice communication services using Internet Protocol, the Commission reaffirmed the current regulatory regime for local VOIP services established in a decision last year, entitled Regulatory framework for voice communication services using Internet Protocol, Telecom Decision CRTC 2005-28, 12 May 2005, as amended by Telecom Decision CRTC 2005-28-1, 30 June 2005," says the decision.
However, "based on evidence presented in its review of the earlier decision, the Commission concluded that the threshold established in Forbearance from the regulation of retail local exchange services (Telecom Decision CRTC 2006-15, 6 April 2006), of 25 per cent market share that incumbent local exchange telephone companies must lose in order to qualify for regulatory forbearance, should be re-examined in a public proceeding. Local competition data, eighteen months more current than data available for the forbearance decision, showed that competitors are making significant investments, are rapidly extending their customer service offerings, are keeping most of the customers they attract and are achieving or exceeding their business plans.
"The CRTC also indicated its intention to include as part of this review the market-share threshold of 20 per cent for removing the win-back rule as it applies to the major phone companies," continues the release.
“We are actively monitoring market conditions and reacting quickly in order to minimize the lag between market developments and the process of deregulation,” said Charles Dalfen, chairman of the CRTC, in the release. “Our objective is to reduce the scope of regulation where market forces are sufficiently strong to protect consumer interests. During the last 12 months, the CRTC has reduced the period for win-back promotions from 12 to three months, provided greater pricing flexibility for certain (VoIP) services, initiated a public process to review the merits of extending that same flexibility for all other regulated services, and begun a proceeding to review wireless services as a possible substitute for local wireline services," he added.
"A single adaptable regulatory framework for local forbearance is the appropriate mechanism to achieve a fully competitive local service market. We are pleased by the results that we are seeing. Our objective of a fully competitive local service market is well on its way to being met.”
More to come later after we talk to the principals.
