Non-Canadian Telecom Providers May Light Leased Dark Fibre

Industry Canada's review of Canadian telecom foreign investment restrictions has attracted a great deal of interest. However, the Canadian Radio-television and Telecommunications Commission (CRTC), which regulates telecommunications in Canada, also plays an important role in determining the scope that non-Canadian-controlled companies have to participate in Canadian telecommunications services markets. Telecom Decision CRTC 2010-930 (TD 2010-930), issued on December 9, 2010, clarified this scope.

The CRTC decided that a service provider that leases "dark" fibre optic cable, and uses optical equipment to "light" and, thereby, provide service over it, is not "operating" that cable. It is therefore not required to be Canadian. As a result, non-Canadians who wish to act as telecommunications service providers in Canada may exercise a high degree of control over their terrestrial networks, provided the dark fibre on which the network is based is owned by a