Thursday, September 07, 2006

CRTC tells big telcoms the score on VOIP

again from the fine people at MarketNews

The Canadian Radio-television and Telecommunications Commission (CRTC) has
asserted its
previous
decision
on VoIP services that regulates it just as a local telephone
service, essentially preventing incumbent telephone companies from pricing their
service lower than competing VoIP companies. However, the Commission said it
will reconsider the established threshold of 25 per cent market share that
incumbent local exchange telephone companies must lose in order to qualify for
regulatory forbearance.


It pleases me enormously to see the CRTC, a governing body that I have railed against for years doing something to justify their existence: encouraging the telcos to adapt to a new player on the block, and not get away with rubbing out the competition and going back to business as usual. Admittedly, the ruling comes with a large "but" attached to it. Frankly, the telcos need take a look at their outdated pricing models for their services and look for better ways to offer value to customers rather than seek legislation protecting their way of doing business.

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