Canada overrules VoIP regulation

The giants of the telephone industry will get their way.

Canada’s Industry Minister Maxime Bernier has confirmed the government’s overruling of the regulations set up for the emerging VOIP industry.

Originally, the Canadian Radio-television and Telecommunications Commission (CRTC) put restrictions on the larger companies to allow smaller companies the opportunity to compete the in the new Voice Over Internet Protocol services. The CRTC had a concern that the larger companies would offer services at below-cost forcing the smaller companies out of the field and ultimately robbing consumers of their choices.

The move by Ottawa is the first time in over a decade that the government has intervened in a CRTC decision. Even so, the commission intends to act on the changes without any resistance. “The government has rendered a decision . . . the government has the power to do so,” according to CRTC spokesman Denis Carmel.

The Association of Voice Over IP Providers is not happy with the government’s decision. The organization agrees with the CRTC and feels removing the regulations will help the giants and hurt the little guys.

Vonage, one of the country’s leaders in VOIP services, disagrees. They feel that the overruling may actually help business. The publicity from the government’s move could raise the awareness in consumers that they now have a choice for their home telephone service.

The Industry Minister agrees with Vonage’s position that the move will serve to help the industry and the consumer.