CRTC Interprets Foreign-Ownership Restrictions

Copyright 2010, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Communications, December 2010

On December 9, 2010, the Canadian Radio-television and Telecommunications Commission (the CRTC) issued Decision 2010-930 which clarifies whether foreign-owned resellers are permitted to light leased dark fibre without violating the foreign-ownership restrictions in the Canadian Telecommunications Industry.

The fundamental issue under consideration was whether AboveNet Canada Inc., which is a foreign-owned reseller, could attach and operate its own optical equipment, in order to light dark fibre which AboveNet had leased from TELUS Communications Company, a Canadian carrier. TELUS had opposed AboveNet's registration as a reseller arguing that, by engaging in such activities, AboveNet would function as a "telecommunications common carrier". Only Canadian-owned and -controlled telecommunications common carriers are permitted to own or operate