Canada’s Conservative government is taking the country’s telecommunications watchdog to task over its continued regulation of the pricing of voice over IP when used as a local telephone service. In a statement Minister of Industry the Honourable Maxime Bernier has announced that the government has varied a decision by the Canadian Radio-television and Telecommunications Commission (CRTC), and is calling on the CRTC to refrain from economic regulation of certain VoIP services.

“Canada's telecommunications landscape has changed dramatically in recent years, and it’s time for our regulatory approach to evolve as well,” said Minister Bernier. “A more competitive environment will translate into greater choice, newer products and better services for the Canadian consumer.”

Earlier this year, Canada’s Governor in Council had referred Telecom Decision CRTC 2005-28, ‘Regulatory Framework for Voice Communications Services Using Internet Protocol’, back to the CRTC for reconsideration. This decision was re-examined in light of the increased demand for VoIP services, recent changes to the regulatory environment and the recommendations of the Telecommunications Policy Review Panel (TPRP). On that occasion, although it announced a review of the existing regime, the CRTC stuck to its VoIP guns (click).

In June of this year, Minister Bernier had tabled a proposed policy direction to the CRTC, signalling the government’s intention to direct the CRTC to rely on market forces to the maximum extent feasible under the Telecommunications Act and regulate only when necessary. “The government's variance of the CRTC’s decision is another step towards deregulation and is consistent with the proposed policy direction we introduced this year,” said Minister Bernier. “Our goal is to reshape telecommunications policy so that it supports an internationally competitive and robust telecommunications industry here in Canada.”

This latest development raises a couple of questions. One concerns the future independence of the regulator. The other is how the move will impact VoIP specialist companies such as Vonage. These, generally, had supported the restrictions the existing regime placed on the larger telcos, calculating that the incumbents might otherwise use VoIP as a loss leader and wreck the start-ups’ market.

Bernier’s initiative was applauded by the country’s largest carrier Bell Canada.

The text of the government's variance of the CRTC's decision on VoIP will be published in the ‘Canada Gazette’ on 29 November.
John Williamson