Bureau Proposes Competition Analysis for Deregulating Local Telephone

OTTAWA, June 23, 2005 – The Competition Bureau has proposed a forward-looking framework to help the CRTC determine when consumers and businesses would benefit from the deregulation of local telephone exchange services. The Bureau is calling for a rigorous competition analysis, such as the one it uses to review mergers.

In response to CRTC Public Notice 2005-2, Forbearance from regulation of local exchange services, the Bureau’s 100-page submission:

- provides a general framework for defining the relevant geographical and product markets applicable to local business and residential services, as well as for the Commission’s assessment of market power within those markets;

- identifies the types of data and evidence required to properly determine the relevant markets and assess market power; and

- provides a practical analytical approach to assessing the data generated against the general framework.

The Bureau considers this proceeding critical to the development of competitive markets for local telephone services in Canada and intends to play an active role in it moving forward. The Bureau has participated in numerous CRTC proceedings over the years on important issues such as the opening of telecommunications markets to competition, appropriate regulatory safeguards against abuse of market power and regulatory forbearance.

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

For media enquiries, please contact:
Eric Glaude
Communications Advisor
Communications Branch
819-953-9760

For general enquiries, please contact:
Information Centre
Competition Bureau
819-997-4282
1-800-348-5358