Canadian ILECs Will Fight CRTC VoIP Order
Bell Canada and Tellus said they will appeal a Canadian Radio-Television and Telecommunications Commission (CRTC) decision to regulate VoIP prices. The declaration follows through on earlier signals of resistance. UBS said it doesn’t expect U.S. regulators to follow the Canadian example, which it described as a win for Canadian cable operators.
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Canadian ILEC sources told Communications Daily national law offers several avenues of appeal. ILECs could ask the CRTC to review, vary or rescind its decision. They could challenge the decision in court on points of law or jurisdiction. ILECs also could appeal to the federal Cabinet, a step that would have to occur within 90 days. The Cabinet can “vary or rescind the decision or refer it back to the Commission for reconsideration of all or a portion of it,” according to Canadian law.
Top ILECs in Canada criticized the decision. “The stakes are high for Canadian consumers and businesses in terms of investment in innovation, consumer choice, competition and productivity,” said Lawson Hunter, executive vp of Bell Canada. “The Commission has misunderstood this new competitive paradigm in what may turn out to be an historic mistake with significant consequences.”
Hunter added: “Canada stands in stark contrast to countries around the world where regulators have deliberately chosen to stay out of the way in order to foster competition.”
“Telus believes this is the wrong decision at the wrong time, because it fails to fully unleash the power of the Internet,” said Janet Yale, Telus executive vp of corporate affairs. “The Commission has denied Canadian telephone companies an opportunity to leverage their leadership in Internet protocol technology to the benefit of customers… This decision reflects the CRTC’s inability to address disruptive technological change in its regulatory framework.”
UBS said its Canadian analysts believe the CRTC decision “will create an opportunity for competitors, especially the cable companies, as they will have greater flexibility in terms of pricing and bundling their product… The cablecos in Canada will use this opportunity to accelerate their bundles, which will likely improve the market share of their cable and internet business.”