In its latest throne speech, the Canadian government revealed its intentions to allow increased foreign ownership in the telecommunication sector. According to a transcript of the speech:
“Our government will open Canada’s doors further to venture capital and to foreign investment in key sectors, including the satellite and telecommunications industries, giving Canadian firms access to the funds and expertise they need.”
The announcement should allow wireless companies to accept foreign financing. But increasing the current 46.7 percent maximum on foreign ownership in the telecommunications, broadcasting, and cable industries will require a change to the Canadian Telecommunications Act, a move that might prove difficult for the minority Conservative government. It remains to be seen just how hard the government will push for this change.
This announcement does not come as a big surprise after the government’s decision last December to overrule the CRTC’s decision that Globalive, WIND Mobile’s parent company, did not meet foreign ownership rules.