Today’s press talks about the Canadian Federal government’s decision to require the CRTC to deregulate local phone service in areas where there are 3 alternate providers.
The phone companies are pleased. Some think this will be good for consumers as it may lead to more competition and reduced prices.
Critics are concerned that the existing telcos wil undercut the competition, so in the end we will be left with no competition and higher prices.
Only time will tell – it will be interesting to follow this as it unfolds.
My personal observations are that while the cable companies have phone service, they are not competing on price. When you add up the prices of similar service from the phone company and the cable company, they are remarkably close. Strikes me that the cable cos see the telcos as their competition, not the independent Voip providers.
So at the moment we seem to have similar priced, similar quality services from the telcos and cable cos, with pure Voip plays coming in much cheaper and more flexible, but often with call quality issues.
Which leads to the network neutrality issue. Will this mean that it becomes even more tempting for any ISP that offers broadband service (ie the telcos and cable cos) to tinker with the quality of third party Voip?
Read an ITBusiness.ca article about the announcement