To nobody's surprise, Bell Canada and Telus are appealing the CRTC's controversial VOIP decision that regulates ILECs while letting rivals such as cablecos and piggybackers such as Vonage and Primus the freedom to set their own prices. At a press conference this afternoon, I'm sure Telus and Bell will complain about the unfairness of it all, and how their inability to compete fairly in a brand new market will stifle competition. Not that there's anything wrong with this approach but what I want to know is what Bell and Telus plan to do with VOIP while Canada's cabinet considers their appeal - a process that could take a year to complete. Bell is only offering its Digital Voice service in a few Quebec cities while Telus has yet to get into the game. Bell, in particular, can't avoid to remain passive because Videotron is starting to make major inroads in Montreal with 42,000 subscribers since February. Meanwhile, Vonage has stepped up its marketing efforts in a huge way with an extensive television campaign, while Rogers has moved into the market - albeit cautiously to control demand.
Update: Not surprisingly, executives from Aliant, SaskTel, Bell and Telus have demanded the federal cabinet change the VOIP rules - citing a list that include: restrained abilty to compete, hindrance to innovation, the active VOIP marketplace and the need for a regulatory playing field that provides fairness. They also warn about artificially high prices for consumers, while giving Shaw, Vonage and Rogers, et al a "powerful advantage" in the marketplace.