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CRTC reaffirms VoIP decision
Ottawa—The market for voice over Internet protocol (VoIP) was further shaped Sept. 1 by an announcement from the Canadian Radio-television and Telecommunications Commission (CRTC).
The CRTC had been reviewing regulations around competition for the technology, after complaints were lodged last year by Bell Canada, SaskTel and TELUS. They opposed the CRTC's decision to forbid telephone companies from using their heft to offer discounted VoIP services.
The commission—in an effort to allow new entrants to the market to become established—indicated price wars would not be permitted by the big phone companies until 25 per cent of the VoIP market share had been lost to new competitors, such as cable companies.
Earlier this month, the CRTC reaffirmed the decision, though it plans to reassess certain aspects of the regulations, particularly the market share threshold. Data from VoIP competitors shows they are making significant investments in VoIP, managing to keep the customers they attract, and achieving or exceeding their business plans.
As a result, the CRTC will review the possibility of reducing the market-share threshold that will dicate at which point big phone companies can aggressively try to win back customers.
For purchasers, the CRTC decision means there won’t be a price war just yet for VoIP services, though the situation will change when major telecommunication companies are given the green light to discount their fees.
VoIP technology allows users to make calls over the Internet—a cheaper alternative to traditional phone lines—since only minimal hardware is required.
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