ARTICLE · 05 JULY 2010

Regulation of Foreign Investment in Canada's Telecommunications Sector

Dentons Canada LLP

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There has been considerable policy activity recently in the area of foreign investment in Canada’s telecommunications sector.

CanadaStrategy

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There has been considerable policy activity recently in the area of foreign investment in Canada's telecommunications sector.

EXISTING RULES

Any person wishing to own and operate transmission facilities in Canada for the purpose of providing telecommunications services to the public for compensation (a telecommunications common carrier or "TCC") is required to comply with certain restrictions on non-Canadian ownership that are set out in the Telecommunications Act (the "Act")¹ and the Canadian Telecommunications Common Carrier Ownership and Control Regulations (the "Regulations").² These restrictions provide, among other things, for:

A Canadian ownership requirement: at least 80% of the voting equity of a TCC must be held by Canadians;³

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