OTTAWA – "The CRTC got it right on VoIP,” Canadian Cable Telecommunications president Michael Hennessy said Monday. “This decision creates a framework for competitors to enter the local telephone market. VoIP and new digital phone services will only be able to offer consumers an alternative to monopoly telephone service, if there are basic safeguards to prevent anti-competitive behaviour.
“There is no need to overturn this decision when consumers are already reaping the benefits of ending a 100 year monopoly in the local telephone market."
The CCTA today replied to “the monopoly phone companies’” request that Federal Cabinet overturn the CRTC’s May 12 decision on voice over internet protocol (VOIP).
The decision kept certain regulatory controls in place, aimed at giving newcomers to local telephony a solid way to gain a toehold in the marketplace.
“CCTA notes the recent CRTC’s Report to the Governor in Council: Status of Competition in Canadian Telecommunications Markets, indicates that competition in the residential market is far from established. There are only two markets, Halifax NS and Charlottetown PEI, where competitors have more than 10% of the residential local telephone market,” says the CCTA release.
"Promoting competition in the local telephone market will provide Canadians with a choice of service providers, lower prices and innovative technologies," added Hennessy. "In cities where competitors have started to launch VoIP services, prices are finally coming down."
CCTA’s submission also included a recent study by Lemay-Yates Associates, entitled "A Discussion of the Evolution of VoIP Regulation Worldwide".
"Canada is ahead of many countries in conducting a comprehensive examination of VoIP and identifying VoIP as a substitute for conventional telephone services," said Johanne Lemay. "This approach recognizes the key characteristics of the Canadian market, high penetration of high-speed Internet services and low market share loss of incumbent telephone companies in local phone services. This provides an ideal environment for VoIP to flourish."
Cabinet has 12 months from the date of the decision to figure out what it will do and with Industry Canada’s Telecom Review Panel report due in December then the CRTC’s local forbearance decision in March, few in the industry are expecting a quick Cabinet decision.
