The new Federal Budget raises more questions than answers in respect of liberalization of foreign ownership:
The Government of Canada is committed to ensuring that Canadians can benefit from increased competition and investment in the telecommunications sector, which will lead to greater innovation and lower prices for consumers. Increasing foreign investment is an important way of strengthening market competition and attracting new capital and innovative ideas from abroad.
Consistent with the recommendations of the Competition Policy Review Panel, the Government is acting in Budget 2010 to remove the existing restrictions on foreign ownership of Canadian satellites. This will 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.
Yesterday’s throne speech said “key sectors, including the satellite and telecommunications industries”. That was sectors, plural. Not just the satellite telecommunications sector. Well, what about removing restrictions on foreign ownership of Canadian carriers? Small ones, new ones, big ones. Only foreign ownership of satellites?
Enabling strategic global relationships? We were able to do that before, but ask just AT&T how well that worked out.
We’ll need to get some clarity on what is driving the focus on satellites.