OTTAWA-GATINEAU, Jan. 19, 2012 /CNW/ - Today, the Canadian
Radio-television and Telecommunications Commission (CRTC) introduced a
new policy that will encourage large telephone companies to rapidly
adopt Internet Protocol (IP) throughout their networks. This shift will
promote the development of innovative services for Canadians.
"The networks of the future will be primarily based on Internet
Protocol," said Konrad von Finckenstein, Q.C., Chairman of the CRTC.
"We have established basic principles to ensure this technology becomes
the industry standard for voice networks as quickly as possible. The
industry was able to reach a consensus on many key issues during this
proceeding, and we appreciate their commitment."
At the moment, companies are at different stages in their adoption of
IP. Large telephone companies have traditionally relied on voice
circuit-switched technology (known as TDM) to transfer telephone calls
to and from other service providers. Although they are gradually
migrating their networks to IP, large telephone companies continue to
rely on the older technology.
By comparison, companies that began offering telephone services in the
last few years, such as cable companies and wireless providers, have
built IP-based networks. At present, they are responsible for
converting their IP telephone calls to the older TDM standard.
In areas where a large telephone company uses IP to transfer telephone
calls to either an affiliated or unaffiliated provider, it must provide
a similar arrangement to any other provider that asks for it. The CRTC
is requiring large telephone companies to negotiate such arrangements
within six months of a formal request.
The CRTC has also simplified the rules under which the costs of
transferring telephone calls between a wireless and a wireline provider
are shared. A key point was the different obligations between
independent wireless providers and those that are affiliated with a
larger communications company. Currently, independent providers are
responsible for paying the entire cost unless they allow alternative
long-distance providers access to their networks.
Under the CRTC's new policy, wireless providers will no longer be
required to give this access to alternative long-distance providers
since they already offer a variety of plans and Canadians can choose
from other long-distance options, such as prepaid cards and local
access numbers. These changes will reduce costs for many wireless
providers, particularly for those that have recently entered the
Canadian wireless market, and level the playing field between
independent providers and those that are affiliated with a larger
Today's decision follows a proceeding that included a public hearing
that was held in Gatineau, Que., from October 24 to November 1, 2011.
By the end of the month, the CRTC will have completed a comprehensive
review of its major telecommunications regulations. This exercise was
launched in response to the government's policy direction to rely as
much as possible on market forces, and today's decision represents one
of the last steps. During the last five years, the CRTC has deregulated
many segments of the telecommunications market and reduced the scope of
Telecom Regulatory Policy CRTC 2012-24
The CRTC is an independent public authority that regulates and
supervises broadcasting and telecommunications in Canada.
Telecom Notice of Consultation CRTC 2011-206
SOURCE Canadian Radio-television and Telecommunications Commission
For further information:
Tel: 819-997-9403, Fax: 819-997-4245
Tel: 819-997-0313, TDD: 819-994-0423, Fax: 819-994-0218
Toll-free # 1-877-249-CRTC (2782)
TDD - Toll-free # 1-877-909-CRTC (2782)
These documents are available in alternative format upon request.