By Amanda Oye
OTTAWA – Conservative leader Erin O’Toole made an announcement in Ottawa today on the party’s plan to address cellphone and Internet prices in Canada, mistakenly claiming Canada currently bans foreign ownership of telecommunication companies in the country.
“Canadians continue to pay some of the highest prices in the entire world for our cellphone and Internet access,” O’Toole said. “A big reason for high cellphone bills is a lack of competition.”
O’Toole went on to say Canada needs more players in the market “to help improve wireless choice and affordability for consumers,” after which he claimed, “Canada currently bans foreign companies from competing here, leaving Canadians with limited choice and higher prices.”
Canada’s Telecommunications Act, however, does not ban foreign ownership.
In 2012, the government introduced amendments to the Act that allow foreign companies to operate Canadian telecoms if their annual Canadian telecom revenues are less than 10% of the total revenues from telecommunication services in the country. Companies are allowed to grow past that 10% without facing foreign ownership restrictions as long as their growth is not due to the acquisition of control of or the assets of another Canadian carrier.
Furthermore, according to the Act, to be considered Canadian-owned and controlled 80% of the members of a company’s board of directors must be Canadian and 80% of its voting interests must be held by Canadians. Limits. Not a ban.
To watch the full announcement, please click here.
