Conservative government: Hands off VOIP phones
And apparently the Conservatives trust Canadian consumers too. Why else would Industry Minister Maxime Bernier tell the Canadian Radio-Television Commission to not regulate Voice-over-IP telephony?
You mean, the companies can offer VOIP at whatever price they think they can make a profit on? And I can choose a VOIP service based on a balance of features and cost?
And the CRTC won't tell me I'm wrong?
How refreshing!
With a hat tip to Rob Hyndman, this story on the future of telecom in Canada from the Globe and Mail:
The Harper government will announce Wednesday its intention to rewrite the CRTC's key ruling on Internet-based telephone services, a highly unusual move that could mark a big step toward a more open and consumer-friendly sector.
Industry Minister Maxime Bernier will say in a speech in Toronto that the Conservative government will again block the CRTC's repeated efforts to regulate phone services that run over the Internet.
The move increases the odds that digitally based telephone services will become even more common in the near future, which could be a boon for consumers. It also signals that Mr. Bernier will aggressively move forward with his plan to overhaul Canada's highly regulated telecom sector, even though the Conservatives have only a minority government.
“He's not backing down,” said a senior government source. “He's going to keep going.”
Rob correctly describes this as "a coming earthquake in telecom regulation," but like all earthquakes, it's not just the phone that is going to knocked off the table. This can set the stage for a major re-think about the role of government in the Canadian marketplace. A seismic shift away from regulation and paternalism, and towards free markets and real competition.
For many Canadian businesses comfortable in the coccoon of government regulation protecting their turfs, this will be very disconcerting. In particular, it will be interesting to see how a federal attitude towards free market competition plays in traditionally statist Quebec. Of course, it's not like Quebec doesn't have it's fair share of business people itching to be let free from the strings of government overregulation. Maxime Bernier represents the Quebec riding of Beauce.
Maybe that's part of the reason Bernier needs to be the person to take the lead on this. Quebec might be the part of the country that will have the most trouble adjusting to this new reality.
And you thought this was just about phones.
Skew my story on Skewz.com
Rate political news for their bias, read related stories, and leave your own skewed commentary
Search for more opinions from Canadian bloggers on these related keywords
Voice-over-IP VOIP CRTC Canadian Radio-Television Commission Maxime Bernier Beauce Quebec Canada statism statist
Sphere presents related news articles and blog posts
Sphere It!
Comments
Steve: This can set the stage for a major re-think about the role of government in the Canadian marketplace. A seismic shift away from regulation and paternalism, and towards free markets and real competition.
This exactly illustrates my earlier point about the pervasiveness of neoliberalist economics. Now, I don't have a problem with less regulation in VOIP--I sometimes use Skype myself. But governments, and supranational entities like the WTO--need to (and in fact are starting to) recognize that what works for domestic telecommunications may not work for globalized trade and labour.
China's problems with infanticide are not divorced from the country's global economic interests. It's no coincidence that Deng Xiaoping implemented the so-called "one child policy" virtually the same time that he initiated the first round of Chinese economic reforms. You also wrote earlier about sweatshop abuses in China. Do you not see how an insistence on the infallibility of "free markets and real competition" led to the exportation of manufacturing jobs overseas; to the incentive for those overseas factories to drive down wages and increase workhours--often through violence--in order to be "competitive" in securing contracts with Nike and the Gap; and ultimately, to the (re)production of oppressive sweatshop conditions?
Posted by: A at November 16, 2006 10:25 AM
Thank heavens! This is great news for consumers.
As a rural customer I have been bent over the barrel by Telus for years, forced to make up the difference for the competition they've been recieving in urban areas.
Posted by: Cheri at November 16, 2006 10:29 AM
If this means thatI can get a skype-in number, then the Conservatives deserve a majority.
Posted by: Jonny_eh at November 16, 2006 01:44 PM
I've been using a VoIP phone (Vonage) for a couple years now and it's good news that government is staying out of it.
Bad news is now that Shaw Cable has come out with their own VoIP phone the quality of my Vonage phone has mysteriously gone to hell. If the government could do more about the cable and telephone monopolies I'd be a lot happier.
Posted by: Angry Canadian at November 16, 2006 03:25 PM
Ummm.... 'A' what exactly is the point you are trying to make?
Posted by: missing link at November 16, 2006 11:32 PM
I don't think anyone is claiming the "infallibility" of free markets. We are human, after all. But there's a huge gulf between statism and unfettered free enterprise which has yet to be properly explored in this country. Unregulated VoIP seems like a pretty benign experiment. I don't think it's going to lead to infanticide or sweatshops.
Posted by: johndoe124 at November 17, 2006 01:11 PM
Wow, this will be great. The big monopolies will be able to undercut their competition by selling below cost! That way they can eliminate upstarts then jack prices up. This will be great for the consumer!
Posted by: Think a bit before you post at November 17, 2006 01:30 PM
Just to pick up on what "Think a bit" said, it's not that great for consumers. The VoIP regulation matter was before the CRTC for months and months and months. The materials submitted would fill a bookcase. There were hearings. Massive amounts of money were spent by all sides.
The basic dispute around regulating the pricing was between the large incumbent carriers (Bell, Telus, Aliant, etc.) and VoIP carriers (Rogers, Shaw, Vonage, etc.) The VoIP carriers wanted regulated pricing. Why? Because this would prohibit the large carriers (who control 97% of the local phone market, and who - gasp - work in concert on these files) from undercutting the prices of the start ups.
Thus, the CRTC solution (coming down on side with the VoIP carriers) was meant to create a situation in which new carriers would have a fighting chance. This would then, the CRTC hoped, erode the 97% market share held by the large and consequently work to increase competition in telephone service.
To be clear - I'm no great fan of the CRTC.
To also be clear - Minister Bernier's actions, though peddled as creating unfettered competition, actually will ultimately have the effect of limiting competition. Limited competition is precisely what the incumbents (Bell, Telus, etc) want. They lobbied hard after the CRTC decision, and now they have won.
This could be good news if you're heavily invested in a large incumbent carrier, but it's bad news if you're hoping for long term lower prices.
Posted by: Jonathan at November 17, 2006 04:11 PM
Which ever way you look at it, how refreshing is it that a gov't can just sit back and see what happens rather then legislate all sorts of bullshit and then see what happens
Posted by: Randolph at November 17, 2006 04:31 PM
AT&T and Bell South are trying to merge in the states. Merge, combine, combines act?
Cunsumers Union [ CU] has an ongoing lobby and petition against this and I joined in.
AT&T delt with me in a criminal manner and I can say that without fear of lawsuit because I have B.C. Consumer protection documents to prove it.
By contrast, the free enterprise US banking system works well for the most part.
Your credit card may have no fee, a 7 to 8% interest rate and fraudulent charges to your card waived by the company.
You would have none of that if cards were limited to issue by our big 5 banks in Canada. Copetition is GREAT!
Skype is great and free to Jan 1/07. Quality is sometimes rough here in B.C. on Shaw Cable, however I can*t prove anything about whether Shaw is manipulating or not.= TG
Posted by: TonyGuitar at November 19, 2006 01:14 AM
Yeah, don't get your hopes up - they said they'd leave income trusts alone, and look what happened there.
Posted by: kakola at November 20, 2006 12:28 PM
When I moved back from the States, the cost of my roaming and cellphone longdistance and roaming per minute roughly tripled (10 cents to 30 cents) with Rogers compared to my service with Verizon.
I would like to see complete deregulation of Canada's telecoms sector with more foreign investment coming into the country.
Posted by: Ace at November 20, 2006 01:08 PM
hello
Posted by: gorge@gmail.com at May 6, 2007 01:53 AM
 
|
|
