The CEO of Canadian operator Telus has called on the country’s government to abolish a law that limits foreign ownership levels in large telcos.
Last summer Ottawa liberalised rules for small operators – those with 10% market share or less by…
The CEO of Canadian operator Telus has called on the country’s government to abolish a law that limits foreign ownership levels in large telcos.
Last summer Ottawa liberalised rules for small operators – those with 10% market share or less by revenue – to allow them to be wholly foreign owned.
In an interview with the Globe and Mail Darren Entwistle said the change in the law had created a two-tier system that was unfair, especially given that the large operators are the ones investing in Canada’s infrastructure.
Last week it was announced that Vimpelcom was buying out challenger operator Wind Mobile, which it previously held a minority stake in before the change in the law.
Entwistle argued that all telcos should have unfettered access to international capital markets. Currently non-Canadians are prohibited from owning any more than 20% of the voting shares and 46.7% of non-voting shares in the country’s three dominant operators BCE, Rogers and Telus.
The CEO said he expected a change in the law to happen sooner or later, adding that in his view it was a case of “when” not “if”.
He called for a roadmap to be drawn out which would see liberalisation arrive over a three to five year period.
Last year, Telus competitor Wind and activist shareholder Mason Capital had suggested that Telus could be in breach of foreign ownership thresholds.
The Canadian Radio-television and Telecommunications Commission rejected the claims.
