CRTC to Regulate VoIP??
May 9, 2005
The Canadian Radio-television and Telecommunications Commission or the CRTC is expected to make a decision regarding the regulation of Voice over Internet Protocol (VoIP) or not by May 12th, 2005. If passed VoIP phone services would be regulated like traditional phone services including regulation of prices, which is a driving factor in VoIP sales.
Chief executive officer, Michael Sabia of BCE Inc. or Bell Canada Enterprises says he plans to appeal if the CRTC rules for regulation of Internet phone service. Mr. Sabia stated "If it comes down in the way I expect . . . then certainly, as a matter of principle, we would appeal that to the Federal Cabinet."
The CRTC was formed in 1968 and has the power to regulate all broadcast systems as wells as the ability to regulate all telecommunications in Canada. The main argument in this decision is whether VoIP is a phone or Internet service. The decision is to be made by May 12th, 2005.
Jeffrey Citron, CEO of Vonage Holdings Corp. has argued in the past to the Federal Communication Commission in the United States that, "VoIP is yet another Internet application and, as such, the mere specter of common carrier regulation opens up a Pandora's box that has the potential to not only devalue and slow the growth of VoIP, but also detrimentally impact future innovation of new Internet communications applications. By advocating that common carrier regulations apply to Internet applications, the proponents unwittingly threaten to commence a cycle that could lead to the decline or perhaps the destruction of the delicate ecosystem of the Internet itself. Should the cycle begin with VoIP regulation, it will undoubtedly spread to other applications, perhaps e-mail, instant messaging, Internet conferencing, Internet video and "radio" programming. No doubt endless other Internet applications would also soon fall prey to similar regulation, (www.fcc.gov)."
Currently in the United States VoIP services are not regulated.
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