Telus and Bell Fail to Phase CRTC on VoIP Regulation

7:00 am on September 4, 2006 | Category: Business, Regulation, Telecom Services, VoIP

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The Canadian Radio-television and Telecommunications Commission (CRTC) has upheld a May 2005 ruling, which allows it to regulate the pricing of VoIP telephone services.

The ruling has met significant opposition from the country’s top telecom providers, Telus and Bell Canada, as it has prevented them from pricing their offerings in a competitive manner. It has also received a cold welcome from Canada’s Conservative government, which ordered that it be reviewed earlier this year.

Now that the decision has been upheld, however, the Canadian VoIP market will not see a free-market pricing system until the leading telecom operators have lost a significant portion of their market share.

The exact figure is 25%, which must be lost before Bell and Telus are allowed to compete on even ground, but the CRTC has promised to review and possibly alter this benchmark.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock