Canada to regulate VoIP, but only as a local service

13 May 2005

The Canadian Radio-television and Telecommunications Commission (CRTC) has reached a decision regarding proposals to regulate the country’s VoIP sector. It ruled that internet telephony services should be regulated only when used as a local telephone service, meaning that regulations will not apply to PC-based peer-to-peer VoIP services. The CRTC added that its overall target is to create regulatory conditions that allow competition to grow, with the ultimate aim of eliminating price regulation in local telephone services, including VoIP, as the market for each service becomes sustainably competitive. CRTC chairman, Charles Dalfen, stated that ‘VoIP represents a key moment in the evolution of local exchange telephone services. This is precisely the moment when Canada needs a regulatory framework that will provide the quickest road to competition.’