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Regulations

Don’t throttle the net

Publication of an Economic Note on the effects of regulation of prices and service offerings of Internet service providers.

Is net neutrality economically efficient?

In November 2008, the Canadian Radio-television and Telecommunications Commission (CRTC) denied a request from the Canadian Association of Internet Providers which wanted Bell Canada to cease its network “traffic-shaping” practices. The CRTC concluded that Bell’s measures did not violate the law and were not discriminatory since the company applied the same policies both to its wholesale and retail customers. However, the CRTC has decided to examine the broader issue of traffic management by Internet service providers – and thus indirectly to tackle the issue known as “net neutrality.” This proceeding will include a public hearing that is scheduled to begin in July.

Forced access to telecommunications networks

The Canadian Radio-television and Telecommunications Commission (CRTC) has ordered telephone companies to sell to third-party retailers services matching the speed of their own retail Internet services on their next generation networks (NGNs). No one believes that grocery chains should be forced to share their distribution networks with smaller competitors, or that Amazon.com should be forced to make its on-line distribution system available to small bookstores. However, many believe that the government should force telephone companies to allow third-party suppliers access to their facilities.

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