Bell Canada moved cautiously moved into the VOIP market today by launching a Vonage-like service in three cities in Quebec. To be honest, it looks like a pilot project and a shot across the bow of the CRTC, which is taking its sweet time deciding whether or not to regulate VOIP. There are several intriguing parts to Bell Digital Voice. First, the regulatory angle. Clearly, Bell is displeased the CRTC appears to be leaning towards a regime where VOIP services offered by incumbent carriers will regulated, while rivals such as Rogers Communications and Vonage Holdings will be free to set their own prices. By brazenly launching a VOIP service before the CRTC makes a decision, Bell is saying “Look, VOIP is an Internet application so stop thinking of regulating our VOIP service in the same way as traditional telephony service.” Bell has bolstered its case by launching Bell Digital Voice without it to its broadband access service - thereby making it clear to the CRTC its VOIP service is just an Internet application available to anyone with broadband access. My take is if the CRTC regulates ILECs who offer VOIP service, Bell will launch a legal challenge. Basically, Bell is backing the CRTC into a corner in a game of chicken.
As for what Bell is offering with Bell Digital Voice - three simple plans ranging from $38 to $45 a month, which is not cheap but reasonable. It includes lots of features, including the ability to do conference calling, and free long-distance. Eamon Hoey, a telecom consultant, describes Bell Digital Voice as the “beginning of the beginning of the end” of the long-distance business, which had already had the bottom taken out of last year when Bell launched a $5 for 1000 minutes plan.
All in all, I would give Bell credit on all fronts. It introduces what appears to be an attractive service that's reasonably priced, and sends a strong message to the CRTC that push has come to shove. We know where Bell stands, now it's a matter of finding out where the CRTC is going to go with VOIP.
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