Canada allow foreign ownship in telecommunication sector
Filed Under (World Economy) by fred on 04-03-2010
Tagged Under : Canada, telecommunication sector
Canada said Wednesday it will allow more foreign ownership in its telecommunications sector, a move that could mean more wireless players and lower rates for cell phone service.
In a speech outlining its priorities for the new session of Parliament, the Conservative government said it is opening some sectors, including the telecommunications industry, to investment from outside the country.
Rogers Communications, BCE and Telus, which together control 95 percent of the Canadian cell phone market, have lobbied in the past to prevent foreign ownership.
Industry analysts say the ramifications of the policy shift won’t be known until more details are revealed, possibly as early as Thursday.
Industry Minister Tony Clement recently overturned a ruling that disqualified a new entrant into the wireless market, Toronto-based Globalive Wireless, for having too much foreign participation.
Globalive chairman Anthony Lacavera said he isn’t sure whether the rejection of his company – in which Egyptian telecom giant Orascom has a 65 percent stake – played a role in the federal government move.
Critics of the current system say Canadians pay significantly more for wireless services than people in Europe in the U.S.
