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HomePolicy Articles Article Summary

Do we still need to regulate telephone services?

Economic Note by Valentin Petkantchin

The Canadian Radio-television and Telecommunications Commission (CRTC) has ruled there is insufficient competition in the telecommunications industry. In December 2003 the CRTC proposed handicaps on the traditional telephone monopolies in order to allow new companies to enter the market. In April 2004 the Commission opted to extend the handicap to internet telephony. Valentin Petkantchin discusses how this practice is incongruent with contemporary economic analysis.

Petkantchin begins with a discussion of the two economic conceptions of competition. He then explores the state of Canada’s telecommunications industry, which has been regulated primarily by the CRTC since 1976. There was a partial deregulation across the country. The CRTC now contends there is not enough competition, which the author says is based on an end-state vision of perfect competition. According to Petkantchin, “The CRTC’s current regulation of telecommunications as well as its proposals for more regulation reflect a poor understanding of the nature of competition and economic efficiency.”

The author concludes that competition does not serve the public interest, and that the CRTC no longer has any reason to intervene in this sector. Further, he argues there is a strong economic case for the complete deregulation of the telecommunications sector in Canada.

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Policy Publication Details

Author(s): Valentin Petkantchin;
Publisher: Montreal Economic Institute [ Visit Website ]
Year Published: 2004; Publisher Type: Research Institute
Publicly Available: Yes Research Focus: National;
Registration Required: No Language: English French
Payment Required: No Publication Format: Adobe PDF, Hard Copy

Subjects / Categories:

Policy Articles / Media & Communications / Telecommunications
Policy Articles / Media & Communications / Regulations
Policy Articles / Monetary & Capital Management / Government & Business Enterprises
Policy Articles / Regional & Sectoral / Telecommunications
Policy Articles / Media & Communications / Regulations / 2004
Policy Articles / Media & Communications / Telecommunications / 2004
Policy Articles / Monetary & Capital Management / Government & Business Enterprises / 2004
Policy Articles / Regional & Sectoral / Telecommunications / 2004
Policy Articles / Media & Communications
Policy Articles / Monetary & Capital Management
Policy Articles / Regional & Sectoral


Keywords / Tags:

CRTC; Canadian Radio-television and Telecommunications Commission; telecommunications; telecommunications industry; regulation; telephone monopolies; insufficient competition in telecom industry; Canada; economic efficiency; deregulation;