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VoIP Regulation in Canada

Listed author(s):
  • Marcel Boyer
  • Catherine Mercier

The CRTC recently released Regulatory Framework for Voice Communication Services using Internet Protocol (Decision 2005-28), Telecom Decision CRTC 2005-28, setting out the details of the appropriate regulatory regime applicable to the provision of VoIP services. We present a brief overview of Decision 2005-28, we then consider the positions of incumbents and competitors, and finally we comment on the above interventions in light of the economic theory of regulation and the theory of strategic competition. We conclude that the predominant model underlying the positions not only of the CRTC but also of the parties involved, including the firms themselves, both the incumbents and the new entrants, and their respective business consultants, do not stand the test of modern economic theory. Le CRTC a récemment publié la décision Cadre de réglementation régissant les services de communication vocale sur protocole Internet (Décision 2005-28) dans laquelle il fixe les paramètres du régime de réglementation qui régira la fourniture des services VoIP. Nous présentons d'abord un aperçu de la Décision 2005-28 ainsi que les positions des entreprises de services locaux titulaires et des nouveaux concurrents. Finalement, nous commentons ces interventions à la lumière de la théorie économique de la réglementation et de la théorie de la concurrence stratégique. Nous concluons que le modèle dominant sur lequel s'appuient non seulement la position du CRTC, mais également celles des parties intéressées, y compris les entreprises elles-mêmes, les entreprises de services locaux titulaires et les nouveaux concurrents, et leurs conseillers d'affaire, ne résiste pas à l'analyse économique moderne.

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Paper provided by CIRANO in its series CIRANO Working Papers with number 2005s-36.

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Length: 39 pages
Date of creation: 01 Nov 2005
Handle: RePEc:cir:cirwor:2005s-36
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