2006 news releases

VoIP Re-Decision Ignores Telecom Policy Review Panel Recommendations

September 1, 2006

The Canadian Radio-television and Telecommunications Commission (CRTC) has reviewed and confirmed its decision to treat Voice over Internet Protocol (VoIP) services like they were local telephone services.  SaskTel believes this decision is wrong for Canada and for Saskatchewan because it limits consumer choice in new services and results in higher prices than would otherwise be provided by market forces.

“This government is committed to the development of a competitive environment in Saskatchewan, we encourage the entrance of new service providers but we believe the CRTC’s decision limits the competitive choices for the people of this province,” Deb Higgins, Minister Responsible for SaskTel said.  “The CRTC’s regulatory approach is simply bad public policy that handicaps Canadian companies in favour of foreign-based providers and other large domestic companies.”

 “This most recent decision demonstrates that the CRTC is incapable of aligning the regulatory framework to current technology, market and consumer realities,” said John Meldrum, SaskTel Vice President Regulatory Affairs. “The Federal Cabinet must intervene immediately and implement the recommendations of the Telecom Policy Review Panel to ensure that Canada does not lose its position as a world leader in telecommunications.”  

The CRTC’s regulatory direction comes at a critical time as the evolution of Internet Protocol (IP) services will largely define the progress in the next decade for the telecommunications industry and for governments faced with developing economies for the 21st Century.  While competitors will not be subject to regulation, SaskTel and other incumbent telephone companies providing local VoIP services within their home territories are subject to the same regulatory regime applied to traditional local service. This includes the requirement to seek the approval of tariffs, ultimately delaying new product launches and restricting SaskTel’s ability to offer the same VoIP pricing for 306 numbers in Saskatchewan as it offers to customers with telephone numbers from other areas of the country.

About SaskTel
SaskTel is the leading full service communications provider in the province offering competitive voice, data, internet, entertainment and multimedia services, web hosting, text and messaging services over a state-of-the-art digital network.  The Corporation also provides cellular and wireless data services, security monitoring services, directory services, in-room communications services to the healthcare sector through Hospitality Network, telecommunications consulting service through SaskTel International and an out-of-province sales and service channel in Alberta and British Columbia through Navigata Communications.  SaskTel and its wholly-owned subsidiaries have a workforce of approximately 4,000 permanent full-time employees.  Visit SaskTel at www.sasktel.com.

Contact:

Michelle Englot , SaskTel Corporate Affairs
Phone: (306) 777-4476
E-mail: michelle.englot@sasktel.sk.ca