CANADIAN LOCAL PHONE SERVICES DEREGULATED – APRIL 2007.
The Canadian Industry Minister has implemented new rules for local phone deregulation making it significantly easier for the incumbents to obtain deregulation rulings. The new provisions, announced last December, overturn the forbearance rules previously set by the CRTC. The new rules were effective from 18 April 2007 and include, amongst others, the following:
For deregulation of business services, at least two wireline carriers including the telco must be capable of serving 75% of the business customers in the local telephone exchange area.
For deregulation of residential services, there must be at least three carriers that can serve 75% of residential customers, of which one may be a mobile provider.
If the competitive provider has fewer than 20,000 local phone customers nationwide, forbearance will be postponed for at least 18 months.
The CRTC can refuse an application for forbearance if it determines that deregulation would impair the existence of competition.
Safety and social requirements such as 911 and disability services continue to apply.
As the new rules came into force, Bell Canada, Bell Aliant and Telus submitted forbearance applications in respect of a number of cities including:
Bell Canada: residential and business services in Toronto, Montreal, Ottawa-Gatineau, London, Hamilton and Quebec City;
Bell Aliant: residential services in nine Halifax-area exchanges;
Telus: residential services in Edmonton, Calgary, Victoria and several exchanges in Greater Vancouver
Additional applications are expected in coming months. The CRTC must rule within 120 days of an application.
The new rules are part of the government’s policy to increase reliance on market forces, in accordance with recommendations made by the Telecommunications Policy Review Committee in 2006. The Industry Minister ordered the new provisions despite recommendations from the Parliamentary Standing Committee on Science, Industry and Technology not to issue the order.
See also:
Canada – Key Statistics, Telecom Market & Regulatory Overviews;
Canada – Telecommunications Regulatory Reform 2006.
