OTTAWA – Did the industry have this decision pegged or what?
Mere minutes after the CRTC’s voice over IP decision was put out, the Canadian Cable Telecommunications Association issued a press release declaring itself pleased by the decision, while Bell Canada wired one out which blasted the decision, saying it will appeal immediately, just like BCE CEO Michael Sabia said here last week.
“I think we’re very happy,” CCTA president Michael Hennessy told www.cartt.ca in Ottawa today upon the decision’s public release. “It’s pretty much what we expected and for the telephone companies, they’re allowed into the market, allowed to file different tariffs. (The CRTC) has a streamlined process so the only thing the Commission is saying is… they’re going to limit anti-competitive behaviour.”
As for the speed in which cable will grow its VOIP customer rolls? “It depends on the new tariffs the telephone companies have and whether or not the Commission is diligent in making sure there’s no targeted pricing,” said Hennessy, “Protections against that is going to be the real substantive issue for us.
“We’re happy. I think this is a good decision for consumers. Maybe this time around we’re actually going to see competition,” he added.
Telus senior vice-president of government relations Janet Yale – and Hennessy’s predecessor at the CCTA – had a far different take.
“We’re extremely disappointed with today’s decision,” she said. “It’s the wrong decision at the wrong time for consumers because it fails to unleash the power of the Internet to the benefit of residential customers… we are the only players in the residential market who are being held back and we just don’t get why there should be a regulated head start for all of the competitors in this marketplace.”
The decision, when measured against Shaw Cable’s launch of VOIP in Calgary and Edmonton versus Telus, “is a huge barrier,” added Yale. “We’re going to have to consider our options very carefully and we will definitely be appealing the decision to the Federal cabinet.”
"The stakes are high for Canadian consumers and businesses in terms of investment in innovation, consumer choice, competition and productivity," added Lawson Hunter, executive vice-president and chief corporate officer, BCE and Bell Canada. "IP is a disruptive technology that is changing the telecom industry and the way it enables the Canadian economy. The Commission has misunderstood this new competitive paradigm in what may turn out to be an historic mistake with significant consequences."
Quebecor-owned MSO Videotron, which is not a member of the CCTA, also saw nothing but positives in the decision. In January, the company was the first large Canadian MSO to launch VOIP and has attracted nearly 25,000 customers so far, just in Laval and the South Shore of Montreal.
"Bell tried to speculate about the financial impact of the arrival in the marketplace of new players using IP technology," said Robert Depatie, Videotron’s president and CEO. "Today, the CRTC indicated that it prefers to base its decision on concrete market data.
The message from the marketplace is clear,” he added. “Significant numbers of consumers were waiting impatiently for a reliable alternative to traditional telephone service."
– Greg O’Brien
