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Government announces two measures to make telecom market more competitive

By  |  March 14, 2012

The Canadian government has announced two measures designed to make the telecommunications market more competitive: (1) it will ease foreign ownership restrictions by amending the Telecommunications Act, and (2) place caps on upcoming wireless spectrum auctions for bids from smaller wireless firms and new entrants such as Wind Mobile, Mobilicity and Videotron. 

The Telecommunications Act currently forbids foreign investors from owning more than 20 percent of voting shares of Canadian-controlled firms. The government seeks to exempt telecom companies with less than 10 percent of Canadian market share from the current foreign investment restrictions. The caps on the spectrum auctions will apply to the future 700-MHz prime spectrum auction and the 2,500-MHz band auction.

Full content: Ottawa Citizen

 

Related content: Canada Enacts Significant Changes to its Foreign Investment Laws (Catherine Pawluch, Kevin Wright & Jonathan Gilhen, Davis LLP)