Canada To Lift VoIP Price Controls

November 16, 2006

Reuters and other news agencies report that Canada's Federal Government has instructed the Candadian Radio-Television and Telecommunicaitons Commission (CRTC) to significantly deregulate VoIP.

Pricing restrictions had been in place that had deterred Canada's traditional phone companies from undercutting VoIP subscription and rate plans charged by independent VoIP providers such as Vonage Canada.

As a result of these restrictions, traditional companies such as Telus Corp. have been reluctant to implement VoIP.

"We firmly believe that eliminating unnecessary economic regulation will stimulate competition in this new and fast-growing market. It will mean lower costs, fewer regulatory proceedings, and more competitive markets," Canada's Industry Minister Maxime Bernier said yesterday.

"Barriers to entry in this market are very low. There is no reason to regulate it."

Telu' reaction to the news typified the attitude of Canada's telecom sector about this news.

"(Wednesday's) announcement will really encourage companies like ours to bring competing (Internet telephone) services to consumers," said Janet Yale, Telus's executive vice-president of corporate affairs.

It will be interesting to see how quickly the Canadian telecom competitive landscape evolves as a result of this ruling.