VoIP Regulation in Canada

The CRTC recently released Regulatory Framework for Voice Communication Services using Internet Protocol (Decision 2005-28), Telecom Decision CRTC 2005-28, setting out the details of the appropriate regulatory regime applicable to the provision of VoIP services. We present a brief overview of Decision 2005-28, we then consider the positions of incumbents and competitors, and finally we comment on the above interventions in light of the economic theory of regulation and the theory of strategic competition. We conclude that the predominant model underlying the positions not only of the CRTC but also of the parties involved, including the firms themselves, both the incumbents and the new entrants, and their respective business consultants, do not stand the test of modern economic theory. Le CRTC a récemment publié la décision Cadre de réglementation régissant les services de communication vocale sur protocole Internet (Décision 2005-28) dans laquelle il fixe les paramètres du régime de réglementation qui régira la fourniture des services VoIP. Nous présentons d’abord un aperçu de la Décision 2005-28 ainsi que les positions des entreprises de services locaux titulaires et des nouveaux concurrents. Finalement, nous commentons ces interventions à la lumière de la théorie économique de la réglementation et de la théorie de la concurrence stratégique. Nous concluons que le modèle dominant sur lequel s’appuient non seulement la position du CRTC, mais également celles des parties intéressées, y compris les entreprises elles-mêmes, les entreprises de services locaux titulaires et les nouveaux concurrents, et leurs conseillers d’affaire, ne résiste pas à l’analyse économique moderne.regulation, strategic competition, telecommunications, VoIP, concurrence stratégique, réglementation, télécommunication VoIP

Broadbanding Brunswick: High-speed broadband and household media ecologies

New research from the University of Melbourne and Swinburne University has found that 82% of households in the NBN first release site of Brunswick, Victoria, think the NBN is a good idea. The study, Broadbanding Brunswick: High-speed Broadband and Household Media Ecologies, examines the take-up, use and implications of high-speed broadband for some of its earliest adopters. It looks at how the adoption of high-speed broadband influences household consumption patterns and use of telecoms. The survey of 282 Brunswick households found there had been a significant uptake of the NBN during the course of the research. In 2011, 20% of households were connected to the NBN and in 2012 that number had risen to 34%. Families, home owners, higher income earners and teleworkers were most likely to adopt the NBN. Many NBN users reported paying less for their monthly internet bills, with 49% paying about the same. In many cases those paying more (37%) had elected to do so.Download report: Broadbanding Brunswick: High-speed Broadband and Household Media Ecologies [PDF, 2.5MB] Download report: Broadbanding Brunswick: High-speed Broadband and Household Media Ecologies [Word 2007 document, 5MB

A pricing optimization modelling for assisted decision making in telecommunication product-service bundling

Product service bundle (PSB) is a marketing strategy that offers attractive product-service packages with competitive pricing to ensure sustained profitability. However, designing suitable pricing for PSB is a non-trivial task that involves complex decision-making. This paper explores the significance of pricing optimization in the telecommunication industry, focusing on product-service bundling (PSB). It delves into the challenges associated with pricing PSB and highlights the transformative impact of big data analytics on decision-making for PSB strategies. The study presents a data-driven pricing optimization model tailored for designing appropriate pricing structures for product-service bundles within the telecommunication services domain. This model integrates customer preference knowledge and involves intricate decision-making processes. To demonstrate the feasibility of the proposed approach, the paper conducts a case study encompassing two design scenarios, wherein the results reveal that the model offers competitive pricing compared to existing telecommunication service providers, facilitating PSB design and decision-making. The findings from the case study indicate that the data-driven pricing optimization model can significantly aid PSB design and decision-making, leading to competitive pricing strategies that open avenues for new market exploration and ensure business sustainability. By considering both product and service features concurrently, the proposed model provides a pricing reference for optimal decision-making. The case study validates the feasibility and effectiveness of the approach within the telecommunication industry and highlights its potential for broader applications. The model's capability to generate competitive pricing strategies offers opportunities for new market exploration, ensuring business growth and adaptability

The effects of variety and bundling on choice and satisfaction: Applications to new telecommunication and media services

The purpose of this working paper is twofold; 1)to review consumer behavior literature on how assortment variety and bundling influence choice related variables, and 2)to apply this review on an analysis of telecommunication and new services. Literature related to the characteristics of assortment/bundle, perception of the assortment/bundle, perception of the choice situation, choice, perception of the choice, and experience with the chosen option is reviewed with focus on assortment and bundling. The review is based on an open literature search using keywords as “assortment size”, “assortment variety”, “bundling” and “unbundling” in databases as ISI and Ebsco. In addition, manual reviews of references used in the articles revealed from the databases have also been used to make sure we cover as many relevant articles as possible. The articles reviewed are briefly summarized in table 1 (assortment studies) and table 2 (bundling studies). Based on the literature reviewed, the results revealed are applied in a theoretical analysis of the effects of variety and bundling on choice- and post-choice related variables in new telecommunication and media services. Six services are discussed; traditional telephony and broadband services, mobile internet services and applications, services in heterogeneous access networks, multiplay services, TV-channel network services, and online video services. The analyses focus on potential effects of assortment variety and bundling on choice and post choice related variables for each of the six services. Because regulatory authorities typically use variety to stimulate efficient competition, some regulatory issues of relevance for each of the six services are also briefly discussed. The main results from the general consumer literature review on variety and bundling is summarized. A brief summary of what seems to be the most relevant issues related to variety, bundling, and regulatory actions for the six telecommunication and media services analyzed is also presented. The review of the literature and the analyses of the six services show a significant need for research on how variety and bundling influence choice and choice related variables. A discussion of potential routes for future research together with a preliminary draft of a research model closes the discussion of this working paper

Ownership Structure of Cable Networks and Competition in Local Access

In this paper, we discuss the role of cable television networks and their ownership structure in promoting competition in the local access market. First, we show that the dual ownership of a local telephone network and a cable network, compared with separate ownership, may increase or decrease incentives to invest in upgrading the cable television network. Second, we argue that separate ownership of the two networks is important to promote competition in local access.Cable Networks, Local Access, Competition

The Measure and Regulation of Competition in Telecommunications Markets

The development of the canadian telecommunications web is significantly influenced by the regulatory framework put in place to oversee the evolution of the web toward a competitive system. This paper has two specific objectives: first, to develop a methodological framework, which will allow a proper characterization of the level of competition in the telecommunications industry, more specifically in the residential local access market and second, to recommend some (significant) changes in the CRTC approach to the regulation of the Canadian Telecommunications industry. I argue that the current approach to the regulation of telecommunications in Canada is likely to generate significant harms to consumers and businesses as well as efficiency losses for the Canadian economy. I conclude that there is a urgent need for a telecommunications regulatory reform, with a stronger accent put on three crucial roles of the telecommunications regulator as the trusted generator of information for the consumers, as the manager of the level playing field conditions, and as the promoter of efficient investment programmes. Le développement du réseau canadien des télécommunications est influencé de façon significative par le cadre réglementaire adopté pour régir l’évolution de ce réseau vers la concurrence. Cet article a deux objectifs principaux : d’une part, développer un cadre méthodologique adéquat pour caractériser le niveau de concurrence dans l’industrie des télécommunications, plus particulièrement du marché des services résidentiels locaux, et, d’autre part, de proposer des changements (importants) au cadre réglementaire actuel. Je montre que le cadre réglementaire actuel peut engendrer des problèmes importants pour les consommateurs et l’industrie ainsi que des pertes d’efficacité pour l’économie canadienne. Il existe un besoin urgent de réformer le cadre réglementaire actuel, en mettant l’accent sur trois rôles essentiels de l’agence de régulation des télécommunications comme fournisseur d’informations aux consommateurs, comme gestionnaire des conditions de concurrence loyale pour toutes les entreprises et comme promoteur de programmes d’investissement efficaces.competition, regulatory reform, telecommunications , concurrence, réforme de la réglementation, télécommunication

Information and communication technologies in Germany : Is there a remaining role for sector-specific regulation?

In order to analyze the remaining role for sector-specific regulation the focus of this paper is on those elements of the Internet periphery and Internet service provision, which are strongly based on telecommunications, in particular Internet access and Internet backbone. Section 2 deals with the role of telecommunications for the Internet, differentiating between local network access and long distance network capacity. In section 3 the new regulatory arrangements for communications services within Europe, with particular emphasis on Germany, are explained. In order to analyze the future role of sector-specific regulation from a normative point of view, in section 4 the network economic concept of a disaggregated regulatory approach is provided. Section 5 deals with phasing-out potentials for sector-specific regulation due to increasing competition within the local loop. In section 6 the role of technology-neutral regulation is considered, which implies that in an environment of competing network infrastructures sector- specific regulation should not be extended, but removed. Finally, section 7 explains the role of competition in the markets for backbone interconnectivity. --

Analysis of the Effectiveness of Tariffs for Telecommunications Services with Broadband Access

The purpose of the study was to analyze the efficiency of tariffs of companies providing telecommunications services with broadband access. The analysis was carried out with respect to both the efficiency of the tariff system in general and its individual elements. The structure of costs for services providing access to the Internet and networks of digital television has been studied. The scheme of the analysis of the product and cost parts of the tariff system of telecommunication companies is proposed. The advantages and disadvantages of pricing strategies for telecommunication services are discussed

Do market failures hamper the perspectives of broadband?

This report analyses the broadband market and asks whether a specific role of government is necessary. As broadband telecommunication is seen as a source of productivity gains, the European Union and other regions are encouraging the deployment of a secure broadband infrastructure. In the Netherlands, there is some concern whether the supply of broadband capacity will meet the strongly increasing demand. The main conclusions are that presently, given current broadband policy, no considerable market failures exist. Firms have adequate incentives to invest in broadband, partly induced by specific regulation of access to the local copper loop. Hence, there is no need for changes in current broadband policy. Market failures in terms of knowledge spillovers are taken care of by other policies. As the broadband markets are very dynamic, unforeseen developments may emerge such as the appearance of new dominant techniques and market players. The best strategy for the government, in particular the competition authority, is to continuously monitor these markets, making timely intervention easier when needed.