Government to block Internet phone regulation: report

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Government to block Internet phone regulation: report

2006:11:15 19-10-15
OTTAWA (Reuters) - The country's Industry Minister will announce in a speech on Wednesday that the government plans to rewrite Internet phone rules to prevent the industry watchdog from regulating the sector, a newspaper said.

The Globe and Mail, citing a senior government source, said Minister Maxime Bernier will say the Conservative government will again block efforts by the Canadian Radio-Television and Telecommunications Commission (CRTC) to regulate phone services that run over the Internet.

Bernier, who will speak in Toronto at noon on Wednesday, has previously said the government wants the country's regulators to adopt a more market-based approach to policy.

In September, the CRTC upheld a previous ruling which allows it to set prices for voice-over-Internet (VoIP) services. Canada's two biggest phone companies, BCE Inc. and Telus Corp., say that is unfair because it restricts their ability to compete with cable firms and smaller rivals in the sector.

In 2005, regulators decided Internet phone service should be subject to the same regulatory framework as traditional phone services.

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