{"id":3448,"date":"2010-04-07T06:26:23","date_gmt":"2010-04-07T10:26:23","guid":{"rendered":"http:\/\/mhgoldberg.com\/blog\/?p=3448"},"modified":"2010-04-07T07:54:30","modified_gmt":"2010-04-07T11:54:30","slug":"finesse-on-legislative-change","status":"publish","type":"post","link":"https:\/\/mhgoldberg.com\/blog\/?p=3448","title":{"rendered":"Finesse on legislative change"},"content":{"rendered":"

Section 16 of the Telecom Act<\/a> has the ownership and control provisions.\u00a0<\/p>\n

A friend pointed me to the proposed changes that are part of the Budget bill [scroll down to Part 23 of the link<\/a>]:<\/p>\n

\n\n\n\n
\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

1993, c. 38<\/span>\u00a0<\/p>\n<\/td>\n

\n

\n

PART 23<\/strong><\/div>\n
TELECOMMUNICATIONS ACT<\/strong><\/div>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\n\n

2184.(1) Subsection 16(1) of the Telecommunications Act<\/em> is replaced by the following:<\/strong>\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

Eligibility<\/span>\u00a0<\/p>\n<\/td>\n

\n

16.<\/strong>(1) A Canadian carrier is eligible to operate as a telecommunications common carrier if\u00a0<\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\n
(a<\/em>)<\/span> it is a Canadian-owned and controlled corporation incorporated or continued under the laws of Canada or a province; or<\/span><\/div>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\n\n
(b<\/em>) it owns or operates only a transmission facility that is referred to in subsection (5).<\/span><\/div>\n

\u00a0<\/td>\n<\/tr>\n

\n

1998, c. 8, s. 2 \u00a0<\/span>\u00a0<\/p>\n<\/td>\n

\n

(2) Subsection 16(5) of the Act is replaced by the following:<\/strong>\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

Exemption<\/span>\u00a0<\/p>\n<\/td>\n

\n

(5) Paragraph (1)(a<\/em>) and<\/span> subsections (2) and (4) do not apply in respect of the ownership or operation of\u00a0<\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\n
(a<\/em>) international submarine cables;<\/div>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\n\n
(b<\/em>) earth stations that provide telecommunications services by means of satellites; or<\/span><\/div>\n<\/td>\n<\/tr>\n
\u00a0<\/td>\n\n
(c<\/em>) satellites.<\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

If the government merely wanted to exempt satellite operators, it seems they need only have changed 16(5) to add \u201csatellites\u201d to the list. But the proposed legislation does more as 16(1)(b) expands the definition of who can operate as a \u201cCanadian carrier.\u201d As a result, it expands the definition of who can receive the benefits accorded only to Canadian carriers. What is the purpose of the proposed new 16(1)(b)? Does it foreshadow further contemplated changes?<\/p>\n

So what does this all mean? There are a few implications that I think could be interesting.<\/p>\n

Hypothetically, the new rules could allow a number of foreign controlled carriers to become CLECs in Canada. Here\u2019s how – an owner of an international submarine cable, an earth station, or a foreign owned satellite could establish a presence in Canada sufficient to make it \u201csubject to the legislative authority of Canada\u201d. This Canadian presence combined with operations as a telecommunications common carrier (via permitted s. 16(5) transmission facilities) would meet the definition of \u201cCanadian carrier\u201d under the Act.<\/p>\n

CLECs have to be Canadian carriers but they do not actually need to own or operate any other transmission facilities to operate as a CLECs \u2013 rather, they can (as many CLECs do) lease what they need from the ILECs for interconnection and enjoy all of the CLEC benefits, such as bill and keep interconnection and access to Canadian numbering resources.<\/p>\n

The proposed change to Section 16(1) would allow any company – foreign or domestic –\u00a0to set up a Canadian subsidiary, and for the cost of\u00a0a $200 satellite dish (an “earth station” under Section 16(5)(b)), under the new 16(1)(b),\u00a0they are eligible to be Canadian carriers.<\/p>\n

Was this the intent of the proposed 16(1)(b), or is it an unintended consequence?<\/p>\n","protected":false},"excerpt":{"rendered":"

Section 16 of the Telecom Act has the ownership and control provisions.\u00a0 A friend pointed me to the proposed changes that are part of the Budget bill [scroll down to Part 23 of the link]: 1993, c. 38\u00a0 PART 23 TELECOMMUNICATIONS ACT \u00a0 2184.(1) Subsection 16(1) of the Telecommunications Act is replaced by the following:\u00a0 …<\/p>\n

Finesse on legislative change<\/span> Read More »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","two_page_speed":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3448","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nFinesse on legislative change • Telecom Trends<\/title>\n<meta name=\"description\" content=\"Section 16 of the Telecom Act has the ownership and control provisions.\u00a0 A friend pointed me to the proposed changes that are part of the Budget bill : • April 7, 2010\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mhgoldberg.com\/blog\/?p=3448\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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