Keys to History

Regulation of a Public Utility

Since 1892 the federal government has regulated the interactions between telephone companies and their subscribers. The phone rapidly became much too important a service to be left entirely in the hands of private enterprise. In 1892 Parliament passed a special act stipulating that any increase in telephone rates must be first approved by the government.

In 1903 federally chartered telephone companies like Bell Canada were placed under the Railway Act and their rates regulated by the Board of Railway Commissioners for Canada. In 1976 the CRTC took over. A few years later, on August 5, 1980, the CRTC rendered an historic decision that marked the start of competition. Decision 80-13 allowed Bell Canada subscribers to connect telephones and other devices obtained from other suppliers to Bell's system. In June 1992, the CRTC opened up long-distance competition and in May 1997, the market for local phone service.