 |
|
|
||||||||
 |
||||||||
 |
|
|||||||
|
Canada Establishes New Framework To Promote Wholesale Competition Posted on: 05/03/2008 The Canadian Radio-television and Telecommunications Commission (CRTC) today established a new framework for wholesale services that will promote competition in wholesale and retail telecommunications markets based on sound economic principles."Further to the government's direction that the Commission rely on market forces to the greatest extent possible, we conducted a comprehensive review of our approach to the wholesale services provided by traditional companies," said Konrad von Finckenstein, Q.C., Chairman of the CRTC. "We have now set out clear rules that are consistent with competition policy and current market conditions, and that will facilitate increased competition." The new framework was developed with a view to ensuring that existing and new competitors continue to have access to the services they need to compete, while at the same time providing incentives for innovation and investments in competing networks. The Commission will maintain the requirement for telephone companies to provide interconnection services to competitors. Interconnection services allow competitors to access telecommunications networks in order that their customers may call individuals who have a different service provider. The Commission will also continue to mandate the provision of wholesale services used to provide services that are in the public interest, such as 911 and message relay services. As part of this proceeding, the Commission revised its definition of an essential service. To be considered essential, a facility, function or service must: be required by competitors to provide a retail telecommunications service; - be controlled by a company that could use its market power to lessen or prevent competition, and - provide a functionality that would not be practical or feasible for competitors to duplicate. The Commission has identified a number of wholesale services that should no longer be mandated. These non-essential services will be deregulated over the next three to five years to ensure a smooth transition to a reliance on market forces. It is expected that more than a third of wholesale services will be deregulated by the end of 2012. In 2013, the Commission will conduct a review of the services that are still mandated at that time. Alternatives to conditionally mandated services may emerge as the industry evolves and new technologies are introduced, and the Commission will entertain further applications to deregulate if the stipulated conditions arise. In 2006, wholesale services accounted for approximately $3.3 billion of overall telecommunications revenues and major telephone companies held a 65-per-cent share of this market segment. The remaining share was held by major telephone companies operating outside their established territories and other service providers.News story posted by: BroadGroup
Have you also seen these other 5 news stories?
|
||||||||||||||||
|
© BroadGroup 2004 - 2008. All rights reserved
|
|||||||||||||||||
