Industry

Canada’s telecommunications industry has been dominated by telephone and cable companies with historical regional monopolies and protected from external competition by restrictions on the foreign ownership of telecommunications companies imposed by the Canadian government. This environment is changing significantly. Companies which held regional monopolies have expanded into non-traditional markets in Canada to compete with the incumbent CSPs in these new areas of the country. The regulatory environment has changed to permit new entrants, facilitators, aggregators and resellers to enter the telecommunications market. Further, the federal government has lifted foreign ownership restrictions on carriers that control less than 10% of Canada’s wireless market share by revenue. Lifting of foreign ownership restrictions will allow smaller telecom companies to access foreign capital and will increase competition by allowing new US and international entrants. We view these changes as making the open access network very attractive to both domestic and foreign CSPs.