Canadian  budget disappoints on foreign ownership

Canada’s federal budget gave confusing signals to the telecoms industry as to whether the country will relax restrictions on foreign ownership of domestic fixed line, mobile and broadband network operators.

According to CBC News, the government said that it would increase competition and investment in the telecoms sector, which will lead to greater innovation and lower prices for consumers by removing foreign ownership restrictions on satellites, TeleGeography CommsUpdate reported.

The comments continued that the government’s plan would allow firms to access foreign capital and know-how and to invest in new and advanced technologies ... The removal of restrictions will also allow Canadian firms to develop strategic global relationships that will enable them to participate fully in foreign markets.

A day earlier, the government’s annual key policy announcement hinted that the telecoms and satellite industries would be opened up to further overseas investment, stating that Ottawa would open Canada's doors 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.

There is a general sense that it is only a matter of time before the rules are changed, at least in the cellular sector.