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123webguru News Desk
BCE CEO slams Canadian regulator on VoIP decision
By Jeffrey Hodgson
TORONTO (Reuters) - The head of BCE Inc. (BCE.TO: Quote, Profile, Research) , Canada's No. 1 phone company, slammed the country's telecom regulator on Tuesday for its decision this month to limit what big phone companies can charge for calls made using Internet protocol technology.
BCE chief executive Michael Sabia said the decision would mainly help big cable companies who don't need the protection, adding the regulator failed to appreciate how much voice over Internet protocol (VoIP) phone service will shake up the industry.
Unlike traditional phone calls, which require a dedicated line, VoIP breaks voice traffic into fast-moving packets that can be sent over the Internet or other data networks. This dramatically lowers costs.
"Here in Canada we seem to regulate in ways that are simply oblivious to all these changes," Sabia told a telecoms conference.
He called the decision an "incoherent result" and said the regulator had studied the issue through a "badly, badly broken lens." BCE has already said it plans to appeal.
The Canadian Radio-television and Telecommunications Commission (CRTC) ruled earlier this month that former monopoly phone companies such as BCE's Bell Canada unit must get its approval for the prices they charge for VoIP.
The commission said this would ensure new entrants in the market, such as the country's major cable companies, would have a chance to compete and not be undercut by low, predatory pricing.
Sabia argued the industry's barriers to entry are so now so low the big phone companies don't have the ability to undercut new players.
"That decision is wrong in its assumption that the (former monopolies) will act anti-competitively when the factual record on wireless and the Internet tells a completely different story," he said.
"In both cases we had vigorous competition and in both cases no economic regulation."
Adding to a theme raised earlier in the day by Nortel Networks Corp. (NT.TO: Quote, Profile, Research) (NT.N: Quote, Profile, Research) chief executive Bill Owens, Sabia said Canada needed to do more to spur the development and adoption of information and communications technology. He cited government polices in Korea, Ireland and Sweden as examples Canada should follow.
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