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Privatization and Deregulation
Deregulation is the focus for Canada and the Canadian government is at
the forefront of deregulation. In June 1992, the Canadian Radio-Television
and Telecommunications Commission (CRTC) approved competition between
business and residential public long-distance voice services in Quebec,
Ontario, British Columbia, and the Maritime Provinces. In October 1993,
Canada’s Telecommunications Act worked towards deregulation with a
modern framework. In September 1994, the CRTC issued Decision 94-19, which
established a new regulatory framework for Canada, which plans for gradual
extension of competition into local telephone services. This plan allowed
for telephone companies, cable TV operators, wireless service providers,
re-sellers, and special service providers to offer a range of voice, data,
and video services to local subscribers and telephone companies to offer
information services. As a result, in January 1997, customers were able to
choose their carriers and in return, the CRTC has given Canada’s local
carriers the right to raise monthly local access rates by $1.50 in each of
1997 and 1998. Canadian leaders advocate that "Canada will continue
to participate in the ongoing negotiations to remove the world’s telecom
trade barriers."
Canada’s telecommunications industry is regulated by three governing
bodies: The CRTC, Industry Canada, and Heritage Canada. The Government of
Canada aims to foster a competitive economy in the international market
and facilitate open discussion. These bodies act in a collaborative policy
setting and self-regulation market. For example, in 1996, the CRTC ruled
that it would stop from regulating packet data services and would allow
the competitive factors to rule the market. Because the goal of Canada is
to be a world leader in the telecommunications industry, competition will
continue to exist as companies emerge into this market providing services
and products to countries around the world.
Source: Telecom
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