Canadian foreign ownership rules should remain unchanged

The head of the Canadian telecom and broadcast regulator stated earlier this week that the control of the country’s telco sector should remain in Canadian hands, stressing that foreign firms should still not be allowed to own more than a minority 49%…

The head of the Canadian telecom and broadcast regulator stated earlier this week that the control of the country’s telco sector should remain in Canadian hands, stressing that foreign firms should still not be allowed to own more than a minority 49% stake in Canadian telcos.

Konrad von Finckenstein, was speaking before a parliamentary committee discussing foreign ownership rules and regulations, when he made the statement that he felt there should be no regulatory changes made, and that competition on the local market was necessary, but that it should not come at the cost of local players. Therefore, von Finkenstein continued, foreign firms should still not be allowed to hold more than a 49% stake in Canadian telcos. The chairman added that he felt that there should not be different rules for holding firms and operating firms.

The Canadian telecoms regulation has been accused of being overly restrictive in the past, thereby hindering competition and the entrance of new players on the market.