Like fighting with one hand behind your back

New York Times had an article today on how VoIP will change the competitive landscape in Canada with regards to data communication.

One thing’s for sure, there will be more competition around – the question is how substantial it will be. I’m still not 100% convinced that the likes of Primus and Vonage have the killer app, but they’re products are definitely decent.

An interesting quote about how regulated the ILECs are:

…The phone companies are especially concerned that VoIP technology will give cable operators a free hand to offer “triple play” bundling, or discounted prices for packages of TV, Internet and local phone service.

B.C.E. and Telus also bundle services, but they are not allowed to offer a discount of more than 10 percent on the usual retail price. These restrictions do not apply to new suppliers of local phone service or to unregulated services, like wireless, cable, Internet and long-distance phone calls.

Sabia and others are calling for the CRTC to loosen the leash around their necks so that they can better compete with the new smaller, faster players. Sabia cites the impending convergence of IP, voice and wireless will easily give competitors a massive upper hand if BCE is not allowed a level playing field.

For now, the CRTC is satisfied with giving the ILECs a handicap via VoIP regulations that the CLECs do not have to follow.