CRTC Allows Telus and Bell Canada to Set Free Market Local Phone Rates

7:30 am on November 24, 2006 | Category: Business, Regulation, Telecom Services, Telephone, VoIP

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Canada’s biggest telephone providers, BCE Inc. and Telus Corp., have won the right to set their own prices on some fixed-line phone services, provided that they fall within a range approved by the Canadian Radio and Telecommunications Commission.

The phone companies have been lobbying the CRTC for the ability to compete on a fair market basis with cable carriers like Rogers and Shaw, who have started offering VoIP digital phone services at lower-than-normal market rates. Canadian telephone companies will lose a projected 8% of their residential subscribers over the course of 2006, as users switch to VoIP and cell phones.

A free market pricing system will allow Vancouver-based Telus and Montreal-based BCE to lower prices and offer more competitive services to consumers across Canada.

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    Edited by Jeremy Maddock