Friday, November 17, 2006
The CRTC and the VoIP order

The CRTC issued a Circular yesterday to give effect to the Order in Council. The circular noted that the tariffs for Bell Canada's Digital Voice Lite, Bell's Business IP Voice for Broadband and SaskTel's Webcall are no longer of any force.
More is required in order to be consistent with the Order in Council. We believe that there should still be a further review and variance of Decision 2006-53 - the VoIP reconsideration.
As I mentioned in yesterday's posting, the Cabinet Order left Canada with a strange situation that foreign-based VoIP service providers are free from both price regulation and obligations to provide equal access, while Canadian carriers, ILECs and CLECs alike, need to conform to requirements that were designed for the old world of circuit switching.
These equal access obligations were re-affirmed in the CRTC's Digital Voice approval and its September 1 VoIP reconsideration:
the Commission examined the issue of equal access for VoIP services in the proceeding leading to Decision 2006-11. In Decision 2006-11, the Commission reiterated its concern regarding the possibility of a LEC conferring undue or unreasonable preference with respect to access to its networks. It considered that consumers should continue to have options by being able to select interexchange carriers when subscribing to a VoIP service from a LEC. As a result, the Commission considered that Bell Canada should implement equal access capabilities for BDV Lite service within one year.
...
The Commission considers that eliminating the equal access requirement for LECs in relation to the provision of VoIP services would result in artificial distinctions based on technology. The Commission remains of the view, expressed in Decisions 97-8 and 2005-28, that it is necessary to impose equivalent equal access obligations on all LECs, regardless of the technology used.[2006-53, p.111-114]
A Commission decision may be reviewed and varied if there is substantial doubt as to the correctness of the original decision, for example due to an error of law or fact, a fundamental change in circumstances or facts since the decision, failure to consider a basic principle or a new principle which has arisen as a result of the decision.
According to Decision 2006-53, the Equal Access requirement was predicated, at least in part, on the Commission's desire to avoid 'artificial distictions based on technology.' Since the Cabinet intervention, the CRTC's principle of technology neutrality no longer holds for access-independent VoIP. There is no longer an artificial distinction being sought. Cabinet has determined "that retail local access-dependent and access‑independent VoIP services are quite different from each other."
Since access-independent VoIP is now a real distinction and no longer an artificial one, a key premise for imposing equal access obligations no longer holds.
Will the CRTC act of its own motion and demonstrate that it is prepared to work within the full intent of the Minister's direction, or will it force the entire Canadian carrier industry, ILECs and CLECs alike, to undergo a lengthy industry initiated review and vary process?
How much longer will we delay the consumer benefits of allowing LECs to compete with foreign service providers?
Technorati Tags:
CRTC, VoIP, ILEC, Industry Canada, Cabinet, Mark Goldberg
According to Decision 2006-53, the Equal Access requirement was predicated, at least in part, on the Commission's desire to avoid 'artificial distictions based on technology.' Since the Cabinet intervention, the CRTC's principle of technology neutrality no longer holds for access-independent VoIP. There is no longer an artificial distinction being sought. Cabinet has determined "that retail local access-dependent and access‑independent VoIP services are quite different from each other."
Since access-independent VoIP is now a real distinction and no longer an artificial one, a key premise for imposing equal access obligations no longer holds.
Will the CRTC act of its own motion and demonstrate that it is prepared to work within the full intent of the Minister's direction, or will it force the entire Canadian carrier industry, ILECs and CLECs alike, to undergo a lengthy industry initiated review and vary process?
How much longer will we delay the consumer benefits of allowing LECs to compete with foreign service providers?
Technorati Tags:
CRTC, VoIP, ILEC, Industry Canada, Cabinet, Mark Goldberg
Comments:
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It is very hard for me to follow your reasoning.
Are you arguing that there are different rules for two identical service providers, one of which is Canadian-controlled, and the other of which is foreign-controlled?
Or are you simply pointing to the different rules for (1) VoIP resellers, who can be (but need not be) Canadian, and (2) CLECs, who do more than merely reseller, and who must be foreign under the Cabinet's Canadian ownership directive?
Are you arguing that there are different rules for two identical service providers, one of which is Canadian-controlled, and the other of which is foreign-controlled?
Or are you simply pointing to the different rules for (1) VoIP resellers, who can be (but need not be) Canadian, and (2) CLECs, who do more than merely reseller, and who must be foreign under the Cabinet's Canadian ownership directive?
I think your last sentence meant to say that CLECs must be Canadian owned, not foreign.
Yes resellers can be Canadian or foreign. And resellers operate under a set of rules distinct from the rules that apply to carriers.
That is subtly different from your question about "two identical service providers."
Is a foreign carrier operating in Ontario under different circumstances from, say an out of province Canadian carrier that owns no local facilities?
Look at the situation that allows global giants to provide services here without the carrier obligations, versus the major Canadian service providers (Bell, TELUS, Rogers, Shaw, Videotron, MTS Allstream, etc.) who are carriers.
There are loads of opportunities for regulatory gaming as a result.
When the CRTC proceeding gets underway, I will be happy to support your regulatory team in understanding the argument more completely :-)
Yes resellers can be Canadian or foreign. And resellers operate under a set of rules distinct from the rules that apply to carriers.
That is subtly different from your question about "two identical service providers."
Is a foreign carrier operating in Ontario under different circumstances from, say an out of province Canadian carrier that owns no local facilities?
Look at the situation that allows global giants to provide services here without the carrier obligations, versus the major Canadian service providers (Bell, TELUS, Rogers, Shaw, Videotron, MTS Allstream, etc.) who are carriers.
There are loads of opportunities for regulatory gaming as a result.
When the CRTC proceeding gets underway, I will be happy to support your regulatory team in understanding the argument more completely :-)
Trust me, I have no regulatory team! But it seems to me the distinction you are drawing between what you say is an uneven playing field between "Canadian" and "foreign" providers is a misleading one. Unless I am missing something, there is no such distinction.
Rather, the distinction is between Resellers and CLECs. For instance, between a Canadian Reseller and a Canadian CLEC. If you focussed on why that distinction should be eliminated, it would be easier to follow your argument...
Rather, the distinction is between Resellers and CLECs. For instance, between a Canadian Reseller and a Canadian CLEC. If you focussed on why that distinction should be eliminated, it would be easier to follow your argument...
Why don't you call me or drop me a note and we can talk about it. My contact info is on my home page.
Mark - while I support the principle of equal treatment, there are two things that I take issue with in this posting. You ask "Will the CRTC act of its own motion and demonstrate that it is prepared to work within the full intent of the Minister's direction, or will it force the entire Canadian carrier industry, ILECs and CLECs alike, to undergo a lengthy industry initiated review and vary process? Well I would submit that the Commission has done all that the Order requires it to do. The Order says
the Government "varies (the VoIP decisions) so that, in relation to retail local access-independent VoIP services – being a particular class of services – provided by ILECs within their incumbent territories, (the CRTC) refrain from exercising its powers and performing its duties under section 25, subsections 27(1), (5) and (6) and sections 29 and 31 of that Act to the same extent that it does in relation to retail local telecommunications services provided to end users by CLECs in Telecom Decision CRTC 97 8, Local Competition, and subsequent determinations." Given what's in the Order I don't think the CRTC can do what you're suggesting it do. At another point you say "Since the Cabinet intervention, the CRTC's principle of technology neutrality no longer holds for access-independent VoIP." The principle of technology neutrality is not the CRTC's. Rather it is the central theme of the Telecom Act. Given this, the CRTC can't take any actions that would violate that principle. Any attempt to act outside this principle would be in violation of the Act. If the Government had wanted the CRTC to act as you suggest it would have had to amend the Act, something it can't do in an Order. I look forward to your response.
the Government "varies (the VoIP decisions) so that, in relation to retail local access-independent VoIP services – being a particular class of services – provided by ILECs within their incumbent territories, (the CRTC) refrain from exercising its powers and performing its duties under section 25, subsections 27(1), (5) and (6) and sections 29 and 31 of that Act to the same extent that it does in relation to retail local telecommunications services provided to end users by CLECs in Telecom Decision CRTC 97 8, Local Competition, and subsequent determinations." Given what's in the Order I don't think the CRTC can do what you're suggesting it do. At another point you say "Since the Cabinet intervention, the CRTC's principle of technology neutrality no longer holds for access-independent VoIP." The principle of technology neutrality is not the CRTC's. Rather it is the central theme of the Telecom Act. Given this, the CRTC can't take any actions that would violate that principle. Any attempt to act outside this principle would be in violation of the Act. If the Government had wanted the CRTC to act as you suggest it would have had to amend the Act, something it can't do in an Order. I look forward to your response.
First off, I don't see any reference to technology neutrality in the Telecom Act. Where do you see the principle enshrined in the Act?
In any case, that is irrelevant. Technology neutrality is only relevant if there are two technologies providing the same service. The Order in Council declaring that access-independent VoIP are a "particular class of services". In other words, it is a different service - so there is no principle of neutrality to uphold.
The paragraph you cite seems to provide the direction to correct any aspects of Decisions, for ILECs and CLECs alike, that regulated access independent services only because of the CRTC used to view such services the same as regular voice.
In any case, that is irrelevant. Technology neutrality is only relevant if there are two technologies providing the same service. The Order in Council declaring that access-independent VoIP are a "particular class of services". In other words, it is a different service - so there is no principle of neutrality to uphold.
The paragraph you cite seems to provide the direction to correct any aspects of Decisions, for ILECs and CLECs alike, that regulated access independent services only because of the CRTC used to view such services the same as regular voice.
So am I right in thinking that in Canada VOIP carriers from Canada have tighter regulation than those from outside of the country? So overseas business have an advantage over Canadian businesses?
Hello, I just wish to ask this. I have recently open a Reseller Account with Voip.MS. Now my questions is, do I need to register with CRTC to do reselling the VoIP? Please reply. Thank you.
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