As Canada's telecom regulator dithers over whether and/or how to regulate Internet telephony, the European Union has decided to let all service providers compete on a level playing field. Given there are 25 countries involved, the decision is complex but it is a forward-thinking approach to encourage the industry's development.
It puts the spotlight on Canada and where the Canadian Radio-television and Telecommunications Commission will go. In a preliminary view issued last year, the CRTC said incumbent carriers should be regulated while competitors such as Vonage, Rogers, Videotron and Primus will be free to set their own prices.
Frankly, this view is backward because while CRTC believes it is encouraging new competition, it is stifling competition by keeping the incumbent carriers shackled. Now, I could understand it if the competition were start-ups that could easily be crushed by ILECs, but the new players include the cablecos, which do not need to be given a regulatory headstart.
If the CRTC follows through with its original take on Internet telephony, do not be surprised if Bell Canada files some kind of legal or regulatory appeal. Bell would rather compete and cannibalize its existing telephony business than watch new rivals using cutting edge technology take market share.
Om Malik has some more insight into the state of VOIP in Europe and what the decisions means.