With the introduction of the federal government's latest
budget bill, Canada is a step closer to lifting foreign ownership
restrictions for some telecommunications providers.
In mid-March, the
Minister of Industry announced planned changes
to the current foreign ownership restrictions that are intended to
provide greater access to capital and expertise for new entrants
and smaller telecommunications carriers. Last week's
budget bill, which amends over 50 statutes, contains amendments to
the Telecommunications Act
that are designed to put these changes to the Canadian ownership
rules into effect.
Under the proposed amendments, which commence at section 595 of
Bill C-38, the Jobs, Growth and
Long-term Prosperity Act, Canadian ownership
rules will no longer apply to a telecommunications common carrier
if the carrier and all its affiliates have total annual
telecommunications revenues that represent less than 10% of total
Canadian telecommunications revenues, as
