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News Release
October 1st, 1998
INTERNATIONAL TELECOMMUNICATIONS SERVICES —
THE FINAL BUILDING BLOCK FOR A COMPETITIVE MARKET
OTTAWA-HULL — Canada's international telecommunications services market is
now open to full competition.
The CRTC announces today the last major building block needed to establish full
competition in the Canadian telecommunications market (Telecom Decision CRTC 98-17). This decision
establishes a framework for the new competitive market in Canada for international
services, to respond to:
- The Government of Canada's decision to terminate the monopoly of Teleglobe over
telecommunications facilities linking Canada to overseas destinations, effective today.
- The expectation of increased presence in the Canadian market of domestic and
foreign-based international service providers, resulting from recent initiatives under the
World Trade Organization, to increase global competition in telecommunications services in
general.
Over the long-term, Canadian consumers and business customers of telecommunications
services will benefit from competition in international services through lower rates for
international calls and an increase in new service offerings.
The key components of the new regulatory framework include the following:
1. New licensing regime created
As part of its new framework, the Commission has established a licensing regime for
providers of basic international services.
This regime will come into effect on January 1, 1999.
Licensing regime will:
- Ensure that foreign monopolies cannot use their dominance in their home markets to gain
an unfair competitive advantage in the Canadian market.
- Minimize barriers to entry for new service providers.
As a condition of licence, international service providers must not engage in
anti-competitive conduct in relation to providing international service.
To detect anti-competitive conduct, the CRTC requires those licensees who operate
facilities used to transport basic international telecommunications services to:
- File traffic information with the Commission;
- Inform the Commission of agreements they may enter into with foreign telecommunications
service providers for interconnection or the exchange or termination of traffic.
Obtaining a licence
The information provided by applicants will be placed on the public record before a
licence is issued. Licences will generally be issued as a matter of course after
21 days.
2. Routing restrictions eliminated
The Commission has now eliminated all routing restrictions for Canadian traffic,
allowing carriers to route calls through the United States for Canada-Canada calls (for
example, from Calgary to Halifax via the U.S.) and Canada-overseas calls (from Quebec City
to Rome, Italy via the U.S.). This change is expected to provide:
- more cost-effective routes for competitors;
- lower costs and wider availability of services for consumers.
3. Partial deregulation of Teleglobe Canada Inc. (Teleglobe)
Sustainable competition has developed in the retail long distance service market in
Canada. The Commission will therefore no longer require Teleglobe to obtain approval for
rates charged for long distance services it might wish to offer within Canada and between
locations in Canada and the United States.
Until now, Canada's various competing long distance service providers have had to use
Teleglobe's facilities to carry the overseas calls placed by their customers. Based on the
lack of evidence that there will soon be sufficient competition to protect users, the
Commission will continue to require Teleglobe to obtain prior approval for rates charged
for overseas services.
The Commission stated that it would be prepared to consider further deregulation of
Teleglobe if it provides the appropriate evidence of competition.
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Contact: Denis Carmel, Ottawa, Ontario K1A 0N2
Tel: (819) 997-9403, TDD: (819)
994-0423, Fax: (819) 997-4245
e-mail: denis.carmel@crtc.gc.ca
Toll-free # 1-877-249-CRTC (2782)
Copies of today's decision are available through our Internet site ( http://www.crtc.gc.ca ) or by contacting the public
examination room of any CRTC office. These documents are available in alternative
format upon request.
City Telephone TDD Fax
Halifax (902) 426-7997 (902) 426-6997 (902) 426-2721
Montreal (514) 283-6607 (514) 283-8316 (514) 283-3689
Ottawa-Hull (819) 997-2429 (819) 994-0423 (819) 994-0218
Winnipeg (204) 983-6306 (204) 983-8274 (204) 983-6317
Vancouver (604) 666-2111 (604) 666-0778 (604) 666-8322
Documentation Centre:
Toronto (416) 952-9096 55 St. Clair Avenue East, Suite 624
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