If anything, the appeal of the CRTC's VOIP decision by Bell, Telus, Aliant and SaskTel has got tongues wagging with strong views on both sides. Putting aside the regulatory arguments for a minute, what are the ILECs plans when it comes to VOIP? In other words, they're happy to talk the talk – and hold a press conference to do it – but what about walking the walk? The answer from Bell about its Digital Voice service is “no comment”. How come? They contend talking about expansion beyond its four-city stronghold in Quebec would tip off the competition. Seems like an odd stance given the competition – otherwise known as the cablecos – have little problem talking about their plans. Telus, by the way, is still holding firm on its plans to launch a VOIP service later this year but there are no details on the table yet.
One way to perhaps think about it is the ILECs are in strategic limbo. On one hand, they've got some annoying – but relatively minor – regulatory hurdles when it comes to moving into the VOIP market. On the other hand, their existing local telephone businesses are cash cows that provide consumers with reliable, low-cost service. So what do they do – get aggressive on VOIP and/or start marketing how traditional local service meets the needs of most consumers? In any event, they've got to do something other than complain to the federal government and CRTC.

To nobody's surprise, Bell Canada and Telus are appealing the CRTC's controversial VOIP decision that regulates ILECs while letting rivals such as cablecos and piggybackers such as Vonage and Primus the freedom to set their own prices. At a press conference this afternoon, I'm sure Telus and Bell will complain about the unfairness of it all, and how their inability to compete fairly in a brand new market will stifle competition. Not that there's anything wrong with this approach but what I want to know is what Bell and Telus plan to do with VOIP while Canada's cabinet considers their appeal – a process that could take a year to complete. Bell is only offering its Digital Voice service in a few Quebec cities while Telus has yet to get into the game. Bell, in particular, can't avoid to remain passive because Videotron is starting to make major inroads in Montreal with 42,000 subscribers since February. Meanwhile, Vonage has stepped up its marketing efforts in a huge way with an extensive television campaign, while Rogers has moved into the market – albeit cautiously to control demand.
Update: Not surprisingly, executives from Aliant, SaskTel, Bell and Telus have demanded the federal cabinet change the VOIP rules – citing a list that include: restrained abilty to compete, hindrance to innovation, the active VOIP marketplace and the need for a regulatory playing field that provides fairness. They also warn about artificially high prices for consumers, while giving Shaw, Vonage and Rogers, et al a “powerful advantage” in the marketplace.