Chances are, you have already read from other sources that on Friday, the CRTC issued a series of decisions [2007-63, 2007-64, 2007-65, 2007-66] that add considerably to the number of Canadians that reside in areas that have liberalized pricing regulation – forbearance. As I explain below, I distinguish between forbearance and deregulation.
These decisions include Winnipeg for MTS Allstream; Calgary, Edmonton, Vancouver and environs, Victoria and Rimouski for TELUS; 191 exchanges in Bell Territory, including Hamilton, London, Montréal, Ottawa-Gatineau, Québec, and Toronto and their environs and many, many more areas; and, Saskatoon for SaskTel.
A week ago, the CRTC opened the first local markets (Fort McMurray for TELUS and Fredericton, Charlottetown and Halifax for Bell Aliant).
I am cautious not to call these markets “deregulated”. In its Decision that sets out forbearance rules, the CRTC retained sufficient regulatory authority to protect certain consumer interests:
The Commission recognizes that for some customers, particularly residential customers, the operation of market forces after forbearance may result in either a loss of services on which they are reliant or potential increases in prices for services which are essential to their daily lives. The Commission also considers that there may be pockets of uncontested residential and business consumers in forborne markets. The Commission is also cognizant of the arguments raised by ARCH and the Consumer Groups regarding the position of vulnerable customers, including persons with disabilities, and their unique needs with respect to telecommunications services. The Commission considers that market forces alone may not be sufficient to protect the interests of these customers.
Beyond social regulation, including the obligation to serve and access to emergency and assistive services, the CRTC maintains certain regulatory authority over pricing ceilings and availability of stand-alone basic services.
So that is why we use the term forborne, not deregulated.
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CRTC, local forbearance, Bell, TELUS, MTS Allstream, SaskTel