Canadian Ownership Restrictions Lifted: Telecom Open to Foreigners

POSTED MARCH 15TH, 2012

The Canadian federal government announced yesterday that they will be making changes to the foreign ownership restrictions in the telecommunications sector. Before the next spectrum auction takes place (first quarter 2013) non-Canadians will be allowed to own 100 per cent of telecommunications companies as long as they have a Canadian market share of 10 per cent or less. Currently, federal law dictates that direct and indirect foreign investment is limited to a total of 46.7 percent ownership in telecom companies. The federal government also announced that there will be caps on the upcoming spectrum auction which will guarantee that both new entrants and incumbents will have a chance to purchase available spectrum. This is an extremely significant announcement because it will create competition in what has traditionally been an oligopolistic industry in Canada.

 

From a metro fibre provider perspective this is extremely positive for a2b. By utilizing our existing and planned Vancouver infrastructure, new foreign entrants can have a significantly faster speed to market while greatly reducing capital costs. New entrants considering Vancouver will now have reduced barriers to entry without foreign ownership restrictions, as well as available dark fibre to start providing services almost immediately.

 

If you would like to know more about the Vancouver market or fibre availability please contact us

26 thoughts on “Canadian Ownership Restrictions Lifted: Telecom Open to Foreigners

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