CAVP moving to redefine a CLEC

The Canadian Association of VoIP Providers (CAVP) is considering its next steps in convincing the CRTC to redefine what constitutes a competitive local exchange carrier (CLEC). Under current rules, VoIP providers are essentially resellers and they find themselves in regulatory hinterland – not regulated directly by the commission but rather indirectly through regulation of local exchange carriers (LECs). John Lange, president of the VoIP provider association, says the group’s members are definitely interested in having the CRTC redefine the criteria for CLECs to allow VoIP providers to participate in the industry on equal ground with competitive providers. He suggests that the current definition is written in technology specific language and that needs to be changed. "So in that vein, we are considering right now how to best pursue having the CRTC review that to make it a more technology neutral platform," Lange tells Network Letter. "Effectively we’re just another retail customer reselling a service that puts us at a huge disadvantage when we’re buying our lines at the same price that anyone can buy lines at and that’s entirely governed by our competitors." Lange points to the Telecommunications Policy Review Panel Report, which recommends leveling the playing field for CLECs and resellers, as evidence that work on this front can be done. The Panel’s report doesn’t, however, indicate that the definition of a CLEC should be altered. "Resellers in the local telecommunications services market who choose to undertake all the obligations of a competitive local exchange carrier should have all the regulatory rights and obligations applicable to competitive local exchange carriers," notes recommendation 3-30. Other telecom service providers such as MTS Allstream have called for more equitable treatment of resellers. Under current CRTC rules, a CLEC has certain rights and obligations, including interconnection to local exchange carrier networks. Implement broader TPR Report: CAVPAs the association contemplates the next step in changing the definition of a CLEC, the government is moving to implement some of the recommendations from the Telecom Policy Review. Recommendations such as the policy direction issued to the CRTC on June 13, as well as the CRTC’s own review of the wholesale services regime, are two examples of recent implementations. But Lange suggests the government needs to go further and implement all of the recommendations, not just those the Tory-led government believes to be important. He’s critical of the government’s decision to pick and choose from the report. "I don’t have a problem with the government asking the CRTC to take the telecom review report and start implementing the report as it’s written. The problem I see right now is the government has gone, ‘Okay, I see bullet point five and bullet point nine that we really like and we’re going to tell the CRTC to do this one and this one, and this other stuff, we’re skipping over that,’" he explains. The overriding theme of the TPR Report was that less regulation was required in the local telephony space because competition had arrived. It recommended the elimination of economic regulation and the prescription of regulation first, or ex ante regulation. Lange doesn’t dispute the merits of the landmark report, but notes there is a logical order to implementing the recommendations. Prior to any move to deregulation, there have to other elements in place first. "Before you can , you have to say we’re going to deregulate, but we’re going to allow a broader definition of who is entitled to be a carrier, and we’re also going to ensure that carriers are mandated to interconnect with each other," he explains. "As carriers they are entitled to interconnect with other carriers, so that if deregulation happens, the existing carriers can’t say, ‘We’re cutting you off or raising your fees,’ or anything along those lines. And that’s very explicitly said in the telecom report – that that has to happen first and that hasn’t happened."

CAVP moving to redefine a CLEC

News | November 24, 2006

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