OTTAWA – As he said he would earlier this week, Minister of Industry Tony Clement today announced the launch of a public consultation on foreign investment restrictions in the Canadian telecommunications sector.
“Our goal is to encourage investment, innovation and competition in the telecommunications sector for the benefit of both businesses and consumers,” said Minister Clement in the press release. “We look forward to receiving Canadians’ views on this important issue.”
In the Speech from the Throne and Budget 2010: Leading the Way on Jobs and Growth, the Government of Canada committed to opening Canada’s doors further to venture capital and to foreign investment in key sectors, including telecommunications, in order to attract new capital and to encourage innovation and competition.
However, the specifics only talked about satellite communications.
The consultation will run until July 30, 2010 and the consultation paper outlines the current restrictions, describes how Canada compares with other countries and presents the following three options for consideration:
• Increase the limit for direct foreign investment in broadcasting (cable and television) and telecommunications common carriers to 49%
• Lift restrictions on telecommunications common carriers with a 10% market share or less, by revenue
• Remove telecommunications restrictions completely.
“Reviewing restrictions on foreign investment is consistent with the government’s approach to rely more on market forces and less on regulation in the telecommunications industry. Telecommunications is a critical part of the digital economy — a key government priority,” reads the release
Additional information on how to submit your views and the consultation paper can be found at www.ic.gc.ca/telecominvestment.
