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CRTC decides on limited regulation for VoIP telephone services to foster competition

The Canadian Radio-television and Telecommunications Commission (CRTC) today determined that it would regulate Voic...


May 12, 2005  


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The Canadian Radio-television and Telecommunications Commission (CRTC) today determined that it would regulate Voice over Internet Protocol (VoIP) service only when it is provided and used as local telephone service.

“This decision will further the goal of building sustainable competition in local telephone markets,” the commission said. “Under this decision, incumbent local exchange carriers – those with market power — cannot price their local VoIP services below cost to stifle competition.”

The CRTC said in a statement that its mandate includes creating regulatory conditions that allow competition to grow. As each telecommunications market becomessustainably competitive, the CRTC “then refrains – or forbears – from regulating that market.

“We believe that VoIP represents a key moment in the evolution of local exchange telephone services,” said Charles Dalfen, chairman of the CRTC. “This is precisely the moment when Canada needs a regulatory framework that will provide the quickest road to competition.”