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The liberalization of foreign ownership – a false dilemma

News | 08/13/2001 4:00 am EDT

The existing restrictions on direct foreign investment in the telecommunications sector are without merit. The rules create a disincentive for investment in transmission (read local broadband) facilities; they increase the cost of capital for Canadian firms; and they are detrimental to healthy domestic competition in telecommunications. Moreover, the rules do not serve any public policy objectives that cannot be otherwise achieved through other means.

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