Canada's telecom regulator will finally make up its mind about whether or not to regulate VOIP by May 12. The decision can't come too soon for ILECs such as Bell Canada and Telus, which have been watching competition surge in the local telephony market as cablecos such as Shaw and Videotron launch services. The $64K question is which way the CRTC will go. Does it stick with its preliminary opinion to regulate ILECs and allow everyone else to set their own prices? Does it go with something a little friendlier by regulating ILECs but letting them compete freely in markets with lots of competition? Or does it simply open up the market for everyone to compete on a level playing field? I have a feeling - based on gut feeling and analysts reports more than anything else - the semi-regulatory approach will be adopted.
In any event, the CRTC needs to move quickly because the VOIP market is getting away from it. The launch of Bell Digital Voice last week was a clear shot across the bow by Bell Canada, which is frustrated it is operating in regulatory limbo. This situation was exacerbated yesterday when a complaint was filed to the CRTC by several cablecos, which asked for Bell Digital Voice be shut down because Bell has broken the rules by not seeking regulatory pricing approval for a local telephony service.