Canadian government set to open wireless industry to foreign investment

By on Mar 4, 2010 at 7:24 AM
News March 4, 2010

canada

As the Canadian Parliament opened yesterday for a new session, Governor General Michaëlle Jean dedicated a small portion of her Speech from the Throne to highlighting the Conservative government’s plans to open up the wireless industry to foreign investment. As anyone who even closely pays attention to Canadian news will remember, it was just a few short months ago when Industry Minister Tony Clement over-ruled the CRTC’s decision to bar the launch of what is now WIND Mobile. Since then, the controversy over the move has died off, but it looks like what we experience in December could easily balloon into something much bigger. Here is what Jean said:

“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. While safeguarding Canada’s national security, our Government will ensure that unnecessary regulation does not inhibit the growth of Canada’s uranium mining industry by unduly restricting foreign investment. It will also expand investment promotion in key markets.”

So far there is no official word as to whether or not the government will attempt to amend the Telecommunications Act which stipulates that wireless carriers must be no more than 46.7% owned by foreigners and no less than 80% controlled by Canadians, but it certainly doesn’t seem as if there are many other options.

So what think you, Canadians? Is this just progress that will be of great benefit, or is it just another example of the slow but steady parcelling off of Canada’s identity.

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  • Mofo

    1st!

    Fuck Canada.

    America Rulez.

    Canadian Bacon Mofos

  • http://www.andrewpederson.com Pederson

    “So what think you, Canadians? Is this just progress that will be of great benefit, or is it just another example of the slow but steady parcelling off of Canada’s identity.”

    A little bit of both. This is a game changer, but it will be many years before it matters, and the way the wireless industry is going, the game changes less than every many years anyways.

    Either way, Canadian government is disgusting. Because one thing is for certain, we also won’t be under any form of reasonable leadership anytime soon.

  • Prolab

    Eh, im sure the Robellus err, i mean CRTC will beg to differ. They’ll cry foul and complain that foreign investors arent there to provide what canadians want.

    It’s them that they *THINK* offer what the market wants *rolls eyes*.

  • Mike Heath

    plEASE LEAVE THIER FUNKY NETWORKS ALONE. THEY ARE ALL FROZEN ANYWAYS

  • phuzzykiller

    Personally I love the idea. I’m dual citizen and would LOVE to see the network competition that I see down in the States. This wouldn’t be parcelling off our identity, per say, but it would be dealing with the problem of monopoly’s that we see up here.

    Oh, and:
    @ Mike Health & Mofo…. let me guess, you’re one of those idiots that make America look bad with your dumbass comments, right? Stop giving Americans a bad name and fuck off for once!

    • Anthony Ng

      Better late than never. At least it’s great to know that the Canadian government is addressing this type of issues. Lack of competition is really hurting the Canadian consumers. I hope it goes the same for High-speed Internet Provider and Home Phone service. :)

      Leaving bad comments by Americans are really giving Americans a bad name. I’m glad my American friends don’t trash talks Canadians. Only dumb Americans do.

  • mwf

    Love it… the CRTC need to be dismantled, but that’s a fight for another day. Bring on foreign ownership and the competition.

    Posted from BGR Mobile (iPhone).

  • Mog

    Canada’s problem isn’t necessarily competition — the US, also dominated by a few ginormous players, isn’t exactly friendly to upstarts either — but economies of scale. Canada is much less densely populated than US, which is in turn less densely populated than Europe. When you have to build a wireless network just for Canadians, you’re going to have to charge more because your overhead per customer — the cost of building the network — would be higher. But if, say, there was an international wireless carrier that covered both US and Canada, the huge amount of US customers could essentially subsidize Canadian coverage, similar to how US coastal cities already subsidize network rollout in the US midwest. There could be one price for everybody, which would be a big win for the Canadians. There’d also be the added bonus of more affordable international calling, if a US-Canadian carrier allowed anybody to call either country for free.

  • SVELTE

    I think it’s great. The greed of corporate Canada specifically in the telecommunications sector has brought this decision upon us. As a Canadian I think this is a needed decision. Regarding Canadian identity… if some of the highest prices in the world for telecommunications is part of our identity than it needs to be parceled off and that very quickly. Our companies have taken advantage of the ownership laws for too long to the detriment of their customers and technology growth. Overall a good decision by our government.

    • TNSF

      So you prefer that foreign corporate greed replaces Canadian corporate greed? Didn’t we learn anything from watching the entire world meltdown while basking in our relatively stable Canadian economy supported by moderated greed?

      Yes I’m sure foreign companies will take much better care of Canadians than our greedy Canadian companies.

      • SVELTE

        Yes, I do. We are ranked one of the highest in the world for telecom price points because our system in not globalized enough. We are too isolated. Hopefully with increased foreign economics the telecom industry in Canada will be undercut to the point of changing their approach. They have not governed themselves well so opening up the telecom arena to others around the world who have proven to do things better and more cost effectively will only benefit the Canadian consumer (not to mention build-up and modernize our telecom sector to the once “top five” status in the world).

        The banking and telecom industries are very different. As someone working in the financial sector in Canada I have to must say that there are very different dynamics and people governing each. Your use of the banking industry as an analogy for your point regarding the telecom industry is not effective much less accurate.

      • TNSF

        First, the reports that rank our mobile costs as among the highest in the world are fundamentally flawed. I travel frequently around the world and the notion that our mobile costs are materially higher than places such as Europe are blown far out of proportion. Direct comparisons are always inaccurate. Actually using the products reveals drastically different services that can’t always be submitted to comparison.

        Second, my use of banking as an example does stand. Banking is an industry that by regulation has remained controlled by Canadian interests. Thus, while driven by profits, the banks still have a vested interest in the success of the Canadian consumer and economy. There is no ejection seat option for our Canadian banks to get out of Canada if the going gets rough.

        Other industries have faired less well during difficult times because foreign interests can ignore or exit Canada when the going gets rough. Forestry, auto manufacturers and even technology companies have repeatedly gutted Canadian operations in response to global downturns. These companies operate in a reality where their success is not dependent on Canada’s success.

        Foreign investment is inevitable in our wireless industry, but I caution against full-fledged foreign ownership and control of our industry. Foreign parties don’t want into Canada because they have a desire to lower prices. They want into Canada so that they can have a slice of our high mobile margins. For me, Canadian greed is the lesser of two evils.

      • An

        Do you really believe in that Canada has a reliable financial system? It is true only in the point, that Canada has few investments abroad. For commodity goods your buying very expensive products and services. Actually, Canada has no choice as allow the foreign competition in mobile communication branch, because in EU and USA will be no voice but only data plans in couple of years, and Canada could be not interesting even as mobile phones market with its addle market. I had flat rate voice and HSDPA data plan in Germany for 50 euro all in. 911 you can also call with no sim-card there. It is settled by the low that every person has a right for help in critical situation. I did not lose my identity working for Russian, Japanese, German and USA companies I think I enriched myself. Your losing your identity being hostage of few groups washing your brain and using you for their own enrichment. Believe me, I was born in USSR…

  • mangenius

    Read what she said Michael.. She didnt say that the ownership rules will change but the foreign investment rules IE Wind and Orascom.

    Wind still Canadian owned with a hell of a lot of capital given from overseas.

    Your article sucks, trying to twist whats being said into a story

  • mangenius

    Svelte – How the hell is Canada behind in telecom technology growth? Full 1xEVDO coverage, yup we had that before the US, blanketed 21+ HSPA coverage, yup I think we were there before AT&T.

    Oh but they have.. no we are not behind

  • Tom

    Just a point of clarification: the Governor-General’s speech is written by the governing party. So saying that Jean said something is a bit misleading; it’s Stephen Harper who said it, and Jean just spoke the words.

    A minor point, I know, but saying it the other way makes it sound like Jean is exercising free will or judgement about government policy; she is allowed neither.

    Tom

  • Krem de la krem

    Who wants to suck the cum outta my pussyhole ?

  • radio2

    The key issue is along the lines of control. Although Canadians may have 80% control, can foreign investors be allowed to view or control Canadian content? Will that make us vulnerable to national security and export laws?

    80% Canadian control means nothing if it we are giving foreign entities the ability to see how Canadians operate.

  • rtms77

    I think this will do wonders for the Canadian landscape. Others are right, if this was a North American venture it would bring prices down here up north. Still the telecommunications needs a good shake up. And I don’t buy this whole, Canada will be eaten up and identity will disappear. The Canadian gov’t has already recently taken action to protect Canadian intrests, and they will continue to do so if they perceive that it could hurt the Canadian side.

  • ljp

    If they also include changes to the rates established players have to charge to competitors then Canada won’t have to worry about becoming fodder for foreign companies. As it stands now, a company like Sasktel is limited to what it can charge third-parties for access to the infrastructure they spent billions to establish.

    Third parties don’t care about servicing communities of a thousand people while Sasktel is mandated to provide that service. If they can’t compete in the higher population centers where the money is made, then there will be problems with future service.

  • abc123

    The only uniquely canadian identity that I can think of when it comes to telecom and cable companies is RIPOFF artist. They have a unique ability to rip canadians off and get away with it… They are a protected bunch…

  • BBSwany

    I would say keep Canada as it is. We all see what happens when you open the doors in a “free market”. Now half of the US Dollar is owned by foreign companies | governments. Don’t be more like us Canada! Learn from our American arrogance!!

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