Montréal, Québec and Toronto, Ontario (June 5, 2006) - Cogeco Cable Inc., Quebecor Media Inc, on behalf of its subsidiary Videotron Ltd., and Rogers Communications Inc. today have filed a joint submission with the CRTC reconfirming support for the May 2005 decision regarding the regulation of voice over internet protocol (VoIP) services. The submission concludes that the CRTC decision was correct in May 2005 and remains appropriate today. The original decision took a consistent and pro-competitive approach to the regulation of telephone services, regardless of the underlying technology.
The original decision to treat VoIP as a telephone service and not simply as a new technology, continues to make sense today as it did last year. The submission notes the fact that all industry participants agree that VoIP and traditional local exchange services offer the same end product in the minds of consumers.
The CRTC's statutory obligations require economic regulation of VoIP given the significant market power of the incumbent telephone companies in the local telephone service market. Today, the incumbent telephone companies still control over 92% of the local residential telephone market.
The incumbent telephone companies are able to offer VoIP services, but not at prices that are below cost and targeted only to competitors' hard-won recent customers. The submission explains that the CRTC has already granted substantial flexibility for incumbent telephone company VoIP services given their advantaged market position. By guarding against anti-competitive behaviour at this time, the VoIP decision has stimulated more investment and innovation in the local telephone market to the benefit of all Canadians.
This decision and the recent local forbearance decision reflect the CRTC's intent to reduce barriers to competition in local telephone service first and then once competition has become established, deregulate completely according to clear transparent criteria.
This approach has already led to the successful deregulation of over 70% of Canadian telecommunications markets, placing Canada in a leadership position in the world.
ABOUT COGECO CABLE
Cogeco Cable (www.cogeco.ca) is the second largest cable operator in both Ontario and Québec, and ranks fourth in Canada in terms of the number of basic cable service customers served. Cogeco Cable invests in state-of-the-art broadband network facilities, delivers a wide range of services over these facilities with great speed and reliability at attractive prices, and strives to provide both superior customer care and growing profitability to satisfy its customers' varied electronic communication needs. Through its two-way broadband cable infrastructure, Cogeco Cable provides its residential and
commercial customers with analog and digital video and audio services, high-speed Internet access as well as digital telephony service. The Corporation provides about 1,464,000 revenue-generating units to approximately 1,462,000 households in its service territory. Cogeco Cable's subordinate voting shares are listed on the Toronto Stock Exchange (CCA).
ABOUT ROGERS
Rogers Communications Inc. (TSX: RCI; NYSE: RG) is a diversified Canadian
communications and media company engaged in three primary lines of business.
Rogers Wireless is Canada's largest wireless voice and data communications services provider and the country's only carrier operating on the world standard GSM technology platform. Rogers Cable and Telecom is Canada's largest cable television provider offering cable television, high-speed Internet access, residential telephony services, and video retailing, while its Rogers Business Solutions division is a national provider of voice communications services, data networking, and broadband Internet connectivity to small, medium and large businesses across the country. Rogers Media is Canada's premier collection of category leading media assets with businesses in radio and television broadcasting, televised shopping, publishing and sports entertainment. For further information about the Rogers group of companies, please visit www.rogers.com.
ABOUT VIDEOTRON
Videotron Ltd. (www.videotron.com), a wholly owned subsidiary of Quebecor Media Inc., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access services and residential telephone service. Videotron is a leader in new technologies with its illico interactive television system and its broadband network, which supports high-speed cable Internet access, analog and digital cable television, and other services. As of March 31, 2006, Videotron was serving
1,520,000 cable television customers in Québec; including 512,000 illico subscribers. Videotron is also the Québec leader in high-speed Internet access, with 699,000 subscribers to its cable modem and dial-up services. In addition, Videotron provides residential telephone service to more than 227,000 customers in Québec.
The original decision to treat VoIP as a telephone service and not simply as a new technology, continues to make sense today as it did last year. The submission notes the fact that all industry participants agree that VoIP and traditional local exchange services offer the same end product in the minds of consumers.
The CRTC's statutory obligations require economic regulation of VoIP given the significant market power of the incumbent telephone companies in the local telephone service market. Today, the incumbent telephone companies still control over 92% of the local residential telephone market.
The incumbent telephone companies are able to offer VoIP services, but not at prices that are below cost and targeted only to competitors' hard-won recent customers. The submission explains that the CRTC has already granted substantial flexibility for incumbent telephone company VoIP services given their advantaged market position. By guarding against anti-competitive behaviour at this time, the VoIP decision has stimulated more investment and innovation in the local telephone market to the benefit of all Canadians.
This decision and the recent local forbearance decision reflect the CRTC's intent to reduce barriers to competition in local telephone service first and then once competition has become established, deregulate completely according to clear transparent criteria.
This approach has already led to the successful deregulation of over 70% of Canadian telecommunications markets, placing Canada in a leadership position in the world.
ABOUT COGECO CABLE
Cogeco Cable (www.cogeco.ca) is the second largest cable operator in both Ontario and Québec, and ranks fourth in Canada in terms of the number of basic cable service customers served. Cogeco Cable invests in state-of-the-art broadband network facilities, delivers a wide range of services over these facilities with great speed and reliability at attractive prices, and strives to provide both superior customer care and growing profitability to satisfy its customers' varied electronic communication needs. Through its two-way broadband cable infrastructure, Cogeco Cable provides its residential and
commercial customers with analog and digital video and audio services, high-speed Internet access as well as digital telephony service. The Corporation provides about 1,464,000 revenue-generating units to approximately 1,462,000 households in its service territory. Cogeco Cable's subordinate voting shares are listed on the Toronto Stock Exchange (CCA).
ABOUT ROGERS
Rogers Communications Inc. (TSX: RCI; NYSE: RG) is a diversified Canadian
communications and media company engaged in three primary lines of business.
Rogers Wireless is Canada's largest wireless voice and data communications services provider and the country's only carrier operating on the world standard GSM technology platform. Rogers Cable and Telecom is Canada's largest cable television provider offering cable television, high-speed Internet access, residential telephony services, and video retailing, while its Rogers Business Solutions division is a national provider of voice communications services, data networking, and broadband Internet connectivity to small, medium and large businesses across the country. Rogers Media is Canada's premier collection of category leading media assets with businesses in radio and television broadcasting, televised shopping, publishing and sports entertainment. For further information about the Rogers group of companies, please visit www.rogers.com.
ABOUT VIDEOTRON
Videotron Ltd. (www.videotron.com), a wholly owned subsidiary of Quebecor Media Inc., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access services and residential telephone service. Videotron is a leader in new technologies with its illico interactive television system and its broadband network, which supports high-speed cable Internet access, analog and digital cable television, and other services. As of March 31, 2006, Videotron was serving
1,520,000 cable television customers in Québec; including 512,000 illico subscribers. Videotron is also the Québec leader in high-speed Internet access, with 699,000 subscribers to its cable modem and dial-up services. In addition, Videotron provides residential telephone service to more than 227,000 customers in Québec.
