Federal Industry Minister Maxime Bernier grew impatient with the CRTC's glacial pace of telephone deregulation and decided unilaterally to open local telephone markets to unrestricted competition.
"The federal government has now substituted its wisdom for the wisdom of the CRTC," says industry analyst Ian Angus of Angus Telemanagement. "This is an ideological difference about the whole concept of competition."The federal government's concept — which now prevails — means that telecom companies will be freed from the current requirement that they prove they've lost 25 per cent of their customer base to competition in a specified area before they are exempt from regulation, That threshold will be replaced by a new test that requires only that there are at least three other non-affiliated competitors in a given market.
Basically, urban telephone markets in Canada are now wide open. This is clearly a big win for Canadian consumers and the large telecommunications companies that have been pushing for faster deregulation. The big loser is the CRTC, and not for the first time in recent days.
It is the second time in rapid succession that the Industry minister has overruled the federal regulator: in mid-November, he asserted himself on the issue of Voice-over-Internet Protocol.This time out, Mr. Bernier's strike doesn't just hobble the CRTC's power, it cuts the regulator out of the loop altogether. With de facto deregulation of the local telephone market in place, the CRTC is superceded by the federal Competition Bureau, which just last week was given the power to fine telecoms that act in an uncompetitive manner.
The award of that power to the Competition Bureau is also perceived as a direct slight to the CRTC, because it had asked for that authority in the past and been denied.
Maybe the CRTC is finally on its way out.
h/t: Bourque









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