Government reverses CRTC decision on access independent VoIP

Last week, the federal government said the CRTC erred in its VoIP ruling by deciding to regulate the ILECs’ access independent VoIP services. In announcing the decision, Industry Canada Minister Maxime Bernier said the barriers to entry in this market are low and therefore regulation of these services is unnecessary. In an interview on ROBTv November 15, he said that consumers will get better services in the end and lower prices. "It’s a logic of competition. When you have competition, you have better services, more choices and at the end lower prices. So the market will decide. I cannot predict what will be the market at the end, but when you have competition it’s always good for customers and Canadians in the end," Bernier stated. Below is an edited except of his speech to the Economic Club of Toronto. I am spearheading an ambitious policy agenda in the telecommunications sector. The essence of this agenda is to create a new regulatory framework that is more modern, flexible and efficient. I also want to increase the reliance of this sector on market forces. I started this process in June, when I tabled in Parliament a proposed policy direction to the CRTC. It marks our government’s intention to instruct the CRTC to rely on market forces as much as possible in fulfilling its mandate. We want it to regulate only when necessary. And, when regulation is necessary, we want to ensure that it interferes in the least way possible with market forces. The proposed Policy Direction was published in the Canada Gazette on June 17 for a 60-day comment period. During that time, we received submissions from a broad range of stakeholders. We are reviewing these comments before commencing the finalization process. In May, we also issued an order in council ordering the CRTC to reconsider its decision on the regulatory framework for VoIP services. The CRTC had decided to postpone deregulation of VoIP. On September 1, it issued a response in which it confirmed its original decision. Today, I am pleased to announce that our government has decided to change the CRTC’s decision on VoIP — Voice over Internet Protocol phone service. More specifically, we are telling the CRTC to start deregulating access independent VoIP services. These are the telephone services you get through a broadband Internet connection. In a competitive sector, there is no reason to regulate some companies while others can offer the services they want at the prices they want. It is time to have a level playing field from which consumers and small businesses will benefit. We firmly believe that eliminating unnecessary economic regulation will stimulate competition in this new and fast-growing market. It will mean lower costs, fewer regulatory proceedings, and more competitive markets. More competition in this market will allow you to have access to a wider range of telecom options and solutions for the operation of your business. And Canadians will enjoy the same benefits in their homes.The VoIP changes reflect a new approach to economic deregulation in the telecom sector. New technologies can be cutting-edge one day and virtually obsolete the next. In government just as in business, we cannot afford to be slow in adapting. We cannot afford to lag behind while other countries leap forward. There is no reason why Canada should not be the model for other countries in the field of regulation. In the next OECD study on this topic, I want to make sure we get better results. I want Canada to set the standard. I want Canada to have the most flexible and the least restrictive regulation. I want Canada to be the country to which others should align their regulatory environment in order to grow faster. I’ve just given you a brief outlook of what we have accomplished so far to improve the way we do business in Canada. But it’s not over yet.We will continue to listen and to be proactive. We see our role as one of support. We are not here to stifle your creativity. We are not here to cause you to waste time with needless regulations and bureaucracy. We are here to help you gain the freedom to seize opportunities, work harder, invest more and prosper — all so that millions of Canadian consumers can benefit in quality at the end of the day, and benefit in price at the end of the month.

Government reverses CRTC decision on access independent VoIP

News | 11/24/2006 5:00 am EST

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