The CRTC has set the criteria in place for opening up Local Forbearance. Allstream and Videotron are proclaiming that the Decision is balanced – which is usually a coded language that the scales are tipped in their favour. Allstream’s press release is entitled “CRTC Decision Strikes a Balance Between Deregulation and Customer Protection”. The headline for Bell’s press release is “Canadians Denied Benefits of Open Competition”.

So much for balance. We used to say that the measure of a truly balanced Decision is having the ILECs, the new entrants and the consumer groups all kvetching. That’s balance.

The rules are somewhat complex but fairly clear – nothing like the ‘Hopelessly Complex’ TPR. ILECs will still need to apply on an geographic region basis and wait for determinations before they can operate without having to file local tariffs.

The CRTC has said in a conference call that the approval process should be a fairly speedy process – months, not years. Keep in mind that this proceeding took two years from the time of Aliant’s initial application.

By the way, Aliant’s application for local forbearance was denied. Not because of market share losses not being enough (25% is the benchmark), but rather because Aliant was not compliant with a few of the other criteria – less than stellar performance in providing service to their competitors and the lack of a wholesale DSL tariff. As a result, don’t expect regulatory relief for Aliant before 2007.

I understand the logic behind the Commission’s insistence on performance on wholesale essential services, but it’s not clear to me how the wholesale DSL tariff is really a pre-requisite. Especially in Aliant’s territory where the competition is cable-based, it is hard to see why Aliant should have to develop a wholesale DSL service for non-existent wholesale customers when a cable company is using their own facilities for high speed internet.

At least the rules are now clear.

What isn’t as clear is how the ILECs will respond, ie. will the appeals be to the courts or to cabinet or both.

Israel continues to be a hotbed for telecom technology development, especially photonics and IP. It is amazing that such a small country can be such fertile ground for technology development.

Another Israeli startup was swallowed today for $300M. According to Red Herring, PMC-Sierra bought Passave, a developer of systems for Fibre to the Home (FTTH).

We have been watching and participating in the Israeli telecom market and encourage others to look at attending the Israel Telecom trade fair taking place November 6-9 in Tel Aviv. We’re planning to go and we would love to be part of a Canadian contingent.

Let me know if you’re interested in joining us!

A report in the news today talks about Shanghai Telecom ordering network management systems from California-based Narus to “detect and mitigate rogue VoIP traffic on their network.”

Keep in mind that international voice services continue to be a source of foreign capital in many jurisdictions. In China, the government has allowed carriers to block traffic that competes with their own. Shanghai Telecom is acting within China’s regulatory environment.

While we may try to make this an issue of freedom of speech and network neutrality, I think the bigger issue is whether nations continue to have the ability to set and enforce their own laws in a world of IP.

There are many that believe that IP means that no force, whether government or corporate, should be permitted to interfere with their freedoms. Throw away intellectual property claims, make tolls illegal, protest against blocking of images – whether illegal or not.

Others have approached the internet with a view that the wild west can be tamed – that law and order can be extended to the new frontier.

Canada’s ISPs will knock down a web site hosted in Canada with merely offensive content, but will not take action to block websites hosted elsewhere with content found to be illegal by a Canadian court. We’ll be looking at the issue of Illegal Content on the Internet at The 2006 Canadian Telecom Summit in June.

The Canadian Telecom Summit is more than just VoIP. It is where Canada’s telecom industry communicates.

The Canadian-style quadruple play is being adopted in the UK with cable operator NTL acquiring Virgin Mobile for about £1B. The deal also includes licensing of the Virgin brand for the next 30 years for at least £8.5M per year.

Bundling TV, internet, phone and mobile services is new to the UK. The Virgin brand is very powerful and is being seen as helpful for NTL to shed a reputation of less than stellar service.

Keep in mind that Virgin has no network of its own – it operates as an MVNO in all of its markets. It has a youthful subscriber base, highly-energized and motivated employees and a powerful brand.

There are lessons to be learned from Virgin for all of the stodgy companies out there. Note that Andrew Black, president and CEO of Virgin Mobile Canada, will be speaking on June 14 on the Consumer Services Panel at The Canadian Telecom Summit.

Solutions Research Group is releasing new information about Wireless and Telecom usage among new Canadians, part of its Diversity in Canada study. According to CARTT, the study indicates that new Canadians are avid users of mobile phones and alternative long distance calling options.

No surprise for people who track the continuing success of alternate LD providers, such as Telehop. But there are other interesting trends that SRG has been tracking with ethnic communities and advertising.

Kaan Yigit, President of SRG, will be moderating the Consumer Services panel at The Canadian Telecom Summit and is sure to present some interesting insights.