Federal cabinet asks CRTC to reconsider VoIP policy

The federal cabinet has asked the CRTC to reconsider a controversial policy framework for voice-over-internet protocol (VoIP) phone services.

Responding to an appeal launched by Canada's phone companies, the Harper government said "it is in the public interest for the CRTC to reconsider its decision."

"This will give the CRTC the opportunity to take into account the increase in demand for VoIP services and changes to the overall regulatory environment since the original decision was announced last year," said federal Industry Minister Maxime Bernier.

The cabinet's statement was posted Friday on the Industry Canada website.

The announcement was seen as a victory for the country's biggest phone companies, Bell Canada, Telus and Aliant which, along with provincially owned SaskTel, appealed the CRTC's previous ruling on VoIP, last May.

The phone companies objected to the current policy, saying it placed undue restrictions on them.

Under the policy, telephone companies are obliged to file tariffs for VoIP services and prices, a requirement that is waived for other VoIP competitors such as cable companies.

The CRTC also limited the phone companies' marketing activities, putting them at a disadvantage.

There have been several developments since the May 2005 policy was published, including a report by a federal expert panel that recommended less regulation of the telecom industry.

A CRTC ruling last month relaxed some of the marketing restrictions, but said local telephone companies should be regulated until they lose 25 per cent of the market share.